How Much Does Payroll Cost for a Small Business in Illinois?
If you’ve been Googling this question, you’re probably not getting a straight answer. Most payroll companies hide their pricing until you’ve sat through a sales call. Here’s the honest breakdown — including exactly what Payroll Freedom charges.
The short answer
Most small businesses in Illinois pay between $3 and $12 per employee per payroll run, plus a base fee. For a business with 10 employees running bi-weekly payroll, that typically works out to $150–$400 per month all-in.
The wide range exists because pricing varies significantly based on how many services you need, how often you run payroll, and whether you’re working with a local provider or a national one with lots of add-on fees.
What affects payroll pricing?
There are four main variables that determine what you’ll pay for payroll services:
1. Number of employees
Almost every payroll provider charges a per-employee fee. The more employees you have, the more you pay — but the per-employee rate often decreases at higher headcounts. A business with 5 employees will usually pay a higher per-employee rate than one with 50.
2. Payroll frequency
Weekly payroll costs more than bi-weekly, which costs more than monthly. That’s because each payroll run requires processing time, tax calculations, and direct deposit transactions. A business running payroll 52 times per year will pay more than one running it 12 times.
3. Services included
Basic payroll processing is just the starting point. Additional services — time and attendance tracking, HR management, onboarding tools, benefits administration — add to the cost. Some providers bundle these at different tier levels. Others charge separately for everything, which is where hidden fees appear.
4. Local vs. national provider
National providers like ADP and Paychex often have lower advertised base rates but significantly more add-on fees. Local providers typically have more transparent, all-in pricing — but you need to ask the right questions to compare apples to apples.
What Payroll Freedom charges
We publish our pricing because we believe you should know what you’re paying before you sign anything. Here’s our current fee structure:
| Payroll Frequency | Base Fee | Per Employee |
|---|---|---|
| Weekly (52x/year) | $45/run | $3.35/ee |
| Bi-Weekly (26x/year) | $64/run | $3.35/ee |
| Semi-Monthly (24x/year) | $64/run | $3.35/ee |
| Monthly (12x/year) | $95/run | $3.35/ee |
For a business with 10 employees running bi-weekly payroll, that’s $64 + (10 × $3.35) = $97.50 per payroll run, or about $195/month.
Additional one-time and annual fees:
- New client setup fee: $300 (one-time)
- Year-end W-2 processing: $135 base + $9.55 per employee
- New hire reporting: $7 per hire
- Additional state tax filings: $15 per state per quarter
What’s included at every tier
Every Payroll Freedom plan includes full-service payroll processing, federal and state tax filings, direct deposit, employee self-service portal, year-end W-2 preparation, and a dedicated local rep. There are no hidden fees for these core services.
Our Core+ plan adds time and attendance tracking and HR document management. Our Core Pro plan adds ACA administration, benefits enrollment, and full HR management — all for a higher per-employee rate.
What ADP and Paychex actually charge
This is where it gets complicated. ADP’s Essential Payroll plan starts around $79/month plus $4 per employee — but that’s before add-ons. Tax filing, year-end W-2s, HR tools, and new hire reporting are often separate charges. Many small businesses report their actual ADP bill being 40–60% higher than what they were quoted.
Paychex Flex starts around $39/month plus $5 per employee, but similar add-on dynamics apply. The key issue with both: the person you spoke to during sales isn’t the person you’ll deal with when something goes wrong.
The real cost of bad payroll service: Beyond the monthly fee, consider what payroll errors cost you — employee frustration, IRS penalties for late or incorrect filings, and the hours you spend on hold trying to fix problems. A slightly higher monthly rate from a provider who gets it right every time is almost always cheaper in the long run.
Questions to ask any payroll provider before you sign
- What’s the all-in monthly cost for my employee count and pay frequency?
- Are tax filings included, or do they cost extra?
- What does year-end W-2 processing cost?
- Is there a setup fee?
- Will I have a dedicated rep, or will I reach a different person every time I call?
- What’s the process when there’s a payroll error?
The bottom line
For a small business in Illinois with 10 employees, expect to pay $150–$300/month for quality payroll service. For 25 employees, budget $250–$500/month. The exact number depends on your frequency, services needed, and provider.
What shouldn’t vary: you should know your exact cost before you sign, your tax filings should be included, and you should be able to reach a real person who knows your account when something comes up.
If you want to see your exact number in under two minutes, use our pricing calculator — no email required.
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