What’s Actually Included in Payroll Service Pricing? A Line-by-Line Breakdown

Payroll pricing is confusing because different providers include different things in their base rate — and many charge extra for services you’d reasonably assume were included. Here’s exactly what to look for, and how Payroll Freedom handles each item.

The core services — should always be included

These are the services that make up basic payroll processing. If any of these are add-ons rather than included, you’re being nickel-and-dimed from the start:

Service	Payroll Freedom	National Providers (typical)
Payroll processing (all runs)	✓ Included	✓ Included
Federal tax filings (940/941)	✓ Included	✕ Often add-on
State tax filings	✓ Included	✕ Often add-on
Direct deposit	✓ Included	✓ Usually included
Employee self-service portal	✓ Included	✕ Sometimes add-on
Year-end W-2 preparation	✓ Included*	✕ Often add-on
New hire reporting	✓ Included*	✕ Sometimes add-on
Dedicated account rep	✓ Always	✕ Rarely

*W-2s: $135 base + $9.55/ee annually. New hire reporting: $7/hire. These are disclosed upfront — no surprises.

The add-ons — worth paying for if you need them

These services genuinely cost more to provide and it’s reasonable to pay extra for them. The key is knowing the cost upfront:

Time and attendance

Tracking employee hours, managing schedules, and handling PTO requests. At Payroll Freedom this is included in our Core+ and Core Pro plans at a higher per-employee rate — not a separate monthly fee.

HR management tools

Electronic onboarding, document management, and HR compliance resources. Also included in higher-tier plans.

Benefits administration

Managing health insurance deductions, open enrollment, and carrier integrations. Available in Core Pro.

ACA administration

For businesses approaching 50 full-time equivalent employees, ACA compliance reporting (1095-C filing) is a real cost. Included in Core Pro.

Retirement plan submission

Automated 401(k) contribution submission through payroll: $50/month + $125 setup. This is a genuine add-on that saves significant manual reconciliation work.

Multiple state tax filings

If you have employees in more than one state, each additional state’s quarterly filing is $15/state/quarter. Reasonable and clearly disclosed.

The fees that should never surprise you

These are the fees that tend to show up on payroll invoices and shouldn’t:

• Annual price increases without notice — ask specifically what the year-2 rate will be
• Off-cycle payroll fees — some providers charge extra every time you run an additional payroll
• Report fees — being charged to pull standard payroll reports from your own data
• Check printing fees — if you have employees who receive paper checks
• Direct deposit reversal fees — when a deposit needs to be recalled
• Account termination fees — some providers charge to leave

How to compare payroll pricing apples-to-apples

When comparing two providers, build a complete annual cost estimate that includes:

1. Base fee × number of payroll runs per year
2. Per-employee fee × employees × payroll runs per year
3. W-2 processing (one-time annual)
4. Any add-ons you need (time, HR, etc.)
5. Setup fee (one-time)

Then divide by 12 to get your true monthly cost. This exercise often reveals that a provider with a lower advertised rate is actually more expensive once everything is included.

What Payroll Freedom charges — the complete picture

We publish everything. Use our pricing calculator to see your exact number, or visit our pricing page for the full fee schedule. No email required, no sales follow-up unless you want it.