StartEaseHourly cost vs a monthly subscription
A subscription is a fixed bill. Managed payroll is a bill for the hours used. Compare them with your own numbers.
A subscription charges a fixed amount every month. Managed payroll charges $24 for each hour worked on tasks you approved. To compare, divide your current monthly payroll bill by $24: the result is the hours per month at which the two cost the same.
- A subscription charges you every month, busy or quiet.
- Managed payroll charges $24 for each hour worked on tasks you approved.
- To compare: your monthly payroll bill today, divided by $24, is the break-even hours.
Three steps
- Add up what you pay todayLast 12 months: plan fee, per-employee charges, per-payroll charges, year-end forms, state filings, extra help. Divide by 12.
- Estimate your hoursPayroll runs, filings spread over the year, new hires, notices. Your manager gives the real estimate, and you approve it first.
- CompareHours times $24 against your monthly bill. See the arithmetic for sample tasks.
The break-even rule
Quick lookup: your bill today and the break-even hours
| Your total payroll bill today, per month | Break-even hours per month |
|---|---|
| $60 | 2.5 h |
| $100 | 4.2 h |
| $150 | 6.25 h |
| $200 | 8.3 h |
| $300 | 12.5 h |
These bills are examples, not anyone's price. Below the break-even hours, Managed payroll costs less than that bill. Above it, it costs more.
Three example months on Managed payroll
| Month | Hours | Cost at $24 an hour |
|---|---|---|
| Quiet: two payrolls, no changes | 3 h | $72 |
| Typical: two payrolls, a new hire, a notice | 5 h | $120 |
| Busy: quarter-end return, a new state, several changes | 10 h | $240 |
These hours are examples. Your payroll manager gives the real estimate for each task, and you approve it first.
What to count on your bill today
- The monthly or yearly plan fee.
- Charges per employee, per contractor, per payroll or per payment.
- Charges for each extra state.
- Charges for year-end forms such as W-2 and 1099-NEC.
- Charges to fix a mistake or answer a notice.
- Your own team's time: hours spent on payroll times their hourly pay.
Worksheet
| Work in a typical month | Hours |
|---|---|
| Running each payroll | |
| Quarterly and yearly filings, spread over the year | |
| New hires, leavers and changes | |
| Agency notices | |
| Total hours × $24 |
Good to know
- Hours stop at the estimate unless you approve more. The most a task can cost is its hours times $24.
- You pay for hours used, which can be less than the estimate.
- Your bank may charge its own fees when you pay your team.
- Some plans price extras separately: forms, state filings, notices, help from a person. Check each line of your own bill.
Next
Questions people ask
How much does Managed payroll cost?
$24 an hour for the hours your payroll manager works on tasks you approved. There is no subscription, no per-employee fee and no per-payment fee from StartEase.
What is the most a task can cost?
The approved estimate in hours times $24. Hours stop at the estimate unless you approve more.
Will my bank charge fees?
Your bank may charge its own fees when you pay your team. That is separate from StartEase.
How do I compare with my current plan?
Add up everything you pay for payroll in twelve months, divide by 12, then divide by $24. That gives the break-even hours per month.