Monthly vs per-payroll-run pricing

What these pricing models mean (in plain English)

Option A: Monthly pricing usually charges one set amount each month, even if you run payroll once or multiple times.

Option B: Per-payroll-run pricing charges for each payroll run. If you pay your team more often, you may pay more often.

Both models can cover similar basics—processing pay, calculating payroll taxes, paying employees by direct deposit, and handling year-end forms—but the details vary by provider. Before you choose, ask for an itemized description of what’s included.

• Important: RunWise Pay is a **FREE matching service**, not a payroll provider. We help you compare providers—providers run payroll and handle filings.

Typical cost ranges (so you have a starting point)

Costs depend on how many people you pay, how often you run payroll (weekly vs biweekly vs semi-monthly vs monthly), your state, and what’s included (for example: direct deposit, new hire setup, year-end handling, support).

Here are general ranges many small businesses see (these are not quotes):

- Monthly pricing (Option A): often starts around $40–$150 per month, and may add per-employee or other fees.

- Per-payroll-run pricing (Option B): often starts around $3–$10+ per employee per run, and sometimes has a small base fee per run.

If a provider’s pricing looks “too simple,” watch for hidden add-ons (for example: extra charges for year-end forms, corrections, or certain states). Ask what’s included and what costs extra, then confirm it in writing.

• Ranges are only a starting point. Your real cost depends on your team size, pay frequency, and the provider’s included services.

When monthly pricing usually makes sense

Monthly pricing often fits businesses that want predictable budgeting or don’t pay as often. You pay a steady amount each month, and that can be easier to plan around.

Monthly pricing can be a good match if:

• You pay your team biweekly, semi-monthly, or monthly (less frequent than weekly).
• You want one predictable bill and you don’t expect payroll complexity to change month to month.

That said, monthly pricing can still be more expensive if you have many employees or payroll rules change often and the provider charges extra for certain tasks. Always confirm what’s included (and what’s not), especially for corrections and year-end work.

• To compare fairly, ask both options about the same set of services: tax filing, direct deposit, forms, support hours, and how changes are handled.

When per-payroll-run pricing usually makes sense

Per-payroll-run pricing can work well when your team is small or when you pay less frequently. Since you pay for each run, your costs can rise with higher pay frequency.

Per-payroll-run pricing can be a good match if:

• You run payroll monthly or less often, or your payroll volume is usually low.
• You have a smaller headcount and want to pay for payroll activity rather than a monthly base.

Be careful with pay frequency changes. If you start paying employees more often later (for example, moving from biweekly to weekly), your cost may increase quickly under a per-run model. Also ask whether there are charges for special situations like manual adjustments, backpay, or multiple pay types in the same period.

• No winner-take-all: the “cheaper” model depends on how often you run payroll and how many people you pay.

How to compare fairly (avoid payroll pricing surprises)

Pricing is only part of the decision. Two providers with similar monthly vs per-run pricing can differ a lot in what they actually do for you.

Use this checklist before you sign anything. Confirm these items in writing:

• Tax filing & payroll tax handling: Who prepares and files payroll taxes, and what’s the process if something needs correction?
• Employee payment: Is direct deposit included? Are there any limits or extra charges?
• Year-end forms: Are W-2 and 1099 support included (and at what point—early setup vs end-of-year only)?
• Number of pay types: Can the provider handle hourly + salaried, multiple pay rates, or tips/commissions if applicable?
• State coverage: Does the provider support your state(s) and multi-state teams?
• Support & changes: What’s the response time? How are last-minute changes handled?
• Corrections: What happens if you need to fix wages or tax calculations after a run?

If you want a practical starting point, you can explore our guides for basics like choosing a provider and what “payroll compliance” typically includes, then use get matched to talk with participating providers about your exact situation. You stay in control: you compare, confirm what’s included, and choose who to hire.

• Red flags to watch for: vague pricing, hidden fees, no clear tax-filing/processing description, poor support, or pressure to sign fast.

A quick way to estimate your likely lower-cost option

You can make a simple comparison without guessing. First, write down:

• How many employees you pay (and whether contractors are involved)
• Your pay schedule (weekly, biweekly, semi-monthly, monthly)
• Your state
• Any special needs (multiple pay types, frequent changes, corrections)

Then compare two numbers using the provider’s own pricing sheet or quote. For monthly pricing, compare the monthly total for a year. For per-run pricing, estimate how many runs you do per year (for example, roughly 12 for monthly, 26 for biweekly, and 52 for weekly) and multiply by the per-run/per-employee amount—then add any base fees and any known add-ons.

Because rules and inclusions vary, this estimate is only a planning tool. Always confirm specifics with a qualified payroll provider and confirm what’s included in writing. For tax deadlines or compliance questions, check current IRS and state rules or speak with a qualified professional.

• RunWise Pay provides **general guidance and free matching**—not payroll, tax, or legal advice.