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Managed payroll vs software you run yourself

Who does the work, who files, who answers a notice, and how you are charged. Side by side.

EmployersManaged payrollCompare4 min
Short answer

With software you run yourself, you do the payroll work using the tools. With Managed payroll, a StartEase payroll manager does the work and you approve it. Software usually charges a monthly plan. Managed payroll charges $24 an hour for hours used.

In one minute

At a glance

Software you run yourself

  • You enter hours and run each payroll.
  • Forms and returns are often yours to prepare, with prompts.
  • Notices are often yours, or an adviser's.
  • Usually a monthly plan, sometimes with extra charges.
  • You see the plan price.

Managed payroll

  • Your manager prepares each payroll. You approve.
  • Your manager prepares forms and files as your authorized agent where you sign.
  • Your manager explains notices and prepares replies.
  • $24 an hour for hours used (what you get). No subscription.
  • You see each task and its hours before it starts.

Detail

Software you run yourselfManaged payroll with StartEase
Who runs each payrollUsually you or your team.Your payroll manager prepares it. You approve it.
Forms and returnsOften you. Some plans file for you.Your payroll manager prepares them. Federal returns and deposits as your authorized agent if you sign IRS Form 8655 and choose it. State returns once you sign the authorization each state requires.
Agency noticesOften you, or an adviser you pay.Your payroll manager explains it and prepares the reply for you to approve.
ChargesUsually a monthly plan, sometimes extras.$24 for each hour on tasks you approved (what you get). No subscription, no per-employee fee, no per-payment fee from StartEase.
Before you payThe plan price.Each task and its estimated hours.
AfterwardAn invoice.A ledger with date, task, time log, fee and balance, and the log of what was done.
Paying your teamYou, from your own bank, or through the software's payment service.You, from your own bank. StartEase prepares the bank payment file when it is available.
Your timeRunning payroll.Approving.

Which fits?

Software you run yourself may fit if

  • Someone on your team knows payroll and has time.
  • Your payroll is simple and rarely changes.
  • You want to do every step yourself.

Managed payroll may fit if

  • No one wants to own payroll.
  • You have employees in more than one state, or soon will.
  • You have had agency notices.
  • You want to see the hours and fee for each task.

Ten questions to ask any payroll provider

  1. Who runs each payroll, and who approves it?
  2. What does the price include, line by line?
  3. What is charged per employee, per payroll or per payment?
  4. Who files federal and state returns, and what do I sign for that?
  5. What happens when an agency sends a notice, and who pays for the reply?
  6. What does it cost to add a state?
  7. How do I see what was done, and when?
  8. How long are my records kept, and can I export them?
  9. Can I stop at any time, and what do I keep?
  10. Who do I contact, and who answers?

With StartEase: your payroll manager runs it and you approve it; $24 an hour for hours used, nothing per employee or per payment; your payroll manager prepares the returns and files as your authorized agent where you sign; your payroll manager prepares the notice reply; no extra charge for more states; every step is in the task log; records are kept five years from each pay date, with a CSV export; you can stop at any time.

How to compare fairly

  1. Write down what you pay nowLine by line. See hourly cost compared with a subscription.
  2. List who does each job todayPayroll, forms, notices, new states.
  3. Ask each provider in writingWhat is included, and what is charged extra.
  4. Compare the total and the work you still do yourselfPrice is only part of it.
No named comparison here. We do not name other providers or quote their prices on this site, because plans change. Use the steps above with your own bills.

Questions people ask

Which costs less?

It depends on your hours and your current bill. Use the break-even rule in hourly cost compared with a subscription.

Who handles agency notices?

With Managed payroll, your payroll manager explains the notice and prepares the reply for you to approve.

Do you compare with named providers?

No. We do not name other providers or quote their prices, because plans change. Compare with your own bills, line by line.