Payroll outsourcing costs for UK employers
How much does it cost to outsource payroll? Our published employer prices start at a minimum £25 per payroll run for one to eight employees. Standard processing, secure portal access and statutory pension submissions are included. Your headcount, pay frequency and required work determine the quote, which confirms frequency adjustments and any additional scope.
Published employer prices
| Employees | Price |
|---|---|
| 1-8 | Minimum charge of £25.00 per payroll run |
| 9-99 | £3.50 per payslip |
| 100-250 | £3.00 per payslip |
| 251+ | £2.50 per payslip |
All plans include standard payroll processing, secure portal access and statutory workplace pension submissions. Weekly, fortnightly and four-weekly runs are adjusted proportionally.
No setup fees. Transparent pricing.
What is included in your payroll outsourcing fee?
All employer plans include standard payroll processing, secure portal access and statutory workplace pension submissions. The managed service prepares pay calculations and the agreed reports and HMRC submissions, with your review before finalisation. You have a named payroll specialist to discuss the information, rather than being left to run payroll software yourself.
The table shows payroll bureau processing fees for employers, with a minimum per-run charge for small payrolls and per-payslip rates for larger teams. Your quote confirms how the service applies to your headcount and pay schedule. Employee wages, employer National Insurance and employer pension contributions are separate employment costs, not part of the payroll outsourcing fee.
What do the published rates look like in practice?
The examples below show standard monthly processing using the published employee bands. Each assumes one monthly payslip for each employee; the quoted scope and VAT treatment should be checked separately.
The 1-8 employee band is different: it has a minimum £25.00 charge per payroll run, rather than eight separate £25 charges. A small employer should compare the run minimum, not multiply it by headcount.
- 20 employees paid monthly: 20 × £3.50 = £70.00 per month.
- 150 employees paid monthly: 150 × £3.00 = £450.00 per month.
How are weekly, fortnightly and four-weekly runs adjusted?
Weekly, fortnightly and four-weekly payrolls are adjusted proportionally. Confirm the adjustment in your written quote before comparing an annual cost: the published wording does not provide a fixed multiplier that we can responsibly apply to every arrangement. A four-weekly payroll is not the same schedule as a calendar-month payroll, and mixed schedules need their own agreed pricing.
What affects the cost of outsourcing payroll?
CIS administration, multiple pay frequencies, complex pay arrangements and the condition of migration records can affect the scope. For example, reconciling missing history is different from receiving a complete handover pack; processing one salary change is different from reconciling several sets of weekly timesheets. These are reasons to ask for a specific quote, not a claim that an extra fee always applies.
Explain bonuses, statutory pay, attachments, pension arrangements and any regular corrections at the outset. Ask what is covered for the normal cycle and what would require a separate agreement. We do not publish a universal CIS surcharge or migration tariff because no such amount has been agreed. Your quote should make the expected service clear before work begins.
How should employers compare payroll outsourcing quotes?
Compare the same headcount, payment schedule and responsibilities. A low headline rate tells you little if the quotation does not explain the minimum charge, pensions or year-end work. Ask whether prices include VAT and check the final amount on the same basis.
Keep two budget lines separate: the cost of employing your staff and the fee for outsourcing payroll. Our payroll calculator estimates salary, employer National Insurance and pension costs; it does not calculate bureau fees. Use the published employer bands and monthly examples here to compare processing charges, then confirm the following points in a written quote.
- Any setup fee and monthly or per-run minimum
- Pension, CIS and year-end inclusions or separate charges
- Contract length and notice requirements
- Your named contact and the payroll approval process
- Whether the quoted amount includes VAT
How to get an employer payroll outsourcing quote
- 1
Send your payroll outline
Tell us headcount, payment frequency, the current provider or software, and whether CIS or unusual pay arrangements are involved. A short accurate outline is more useful than a guessed employee count.
- 2
Confirm what is included
We identify the standard processing and any additional work required. You can ask about pensions, year-end, migration records and reporting so the quote reflects the service you actually need.
- 3
Review a written quote
Check the employee band, run schedule, frequency adjustment and any separate scope. Quotes are provided within one working day. Raise unclear billing or VAT questions before accepting the arrangement.
- 4
Agree setup and approvals
Once the scope is accepted, we plan onboarding, authorisation and the first run. You retain control over pay instructions and approval; the price does not remove the employer’s responsibility for PAYE.
Common mistakes and compliance traps
A payroll service fee is not the employee’s tax, the employer’s pension bill or the total cost of employment. Keep these figures separate when budgeting.
A cheap quotation does not transfer PAYE responsibility away from the employer. Confirm reporting, records and approvals as well as the price, and use current HMRC guidance when assessing your duties.
Frequently asked questions
How much does payroll cost for one to eight employees?
The published employer minimum is £25.00 per payroll run for 1-8 employees. This is a minimum run charge, not £25 for each employee. Your quote confirms the schedule and any additional scope.
Are workplace pension submissions included?
Streamlining Payroll employer prices include standard payroll processing, secure portal access and statutory workplace pension submissions in all employer plans. Confirm any additional work or inherited reconciliation issues in your written quote.
Is CIS included in the employer price table?
Do not assume that. CIS changes the work required and is discussed in your quote. The employer bands cover payroll pricing; the separate white label practice service has its own inclusions and terms.
Do these prices include VAT?
VAT treatment has not been stated in the published employer price list. Ask us to confirm it in writing when you request a quote so you can compare the final amount on the same basis.
How do I get started?
Send your employee numbers, pay frequency and current arrangements through the quote form, or call us. A named specialist will respond within one working day and explain the scope, price and next steps.
Talk through your payroll
Tell us your headcount, pay frequency and current arrangements. A named specialist will respond within one working day.