Are you ready to take the hassle out of payroll and give your business a major upgrade? Let's dive into the world of Intuit QuickBooks Payroll and break down exactly how much it costs, what you get for your money, and how to choose the perfect plan for your business.
Step 1: Understand the Core Pricing Model – It’s a Two-Part System!
Before we get into the nitty-gritty, it’s crucial to understand how QuickBooks Payroll is priced. It's not a single flat fee. Instead, it's a two-part system:
A monthly base fee: This is the core cost of the plan you choose. It covers the essential features and access to the payroll platform.
A per-employee monthly fee: This is an additional charge for each employee you pay. The more employees you have, the higher this part of the cost will be.
This per-employee fee is where the cost can fluctuate, so it's essential to consider your current and future employee count when choosing a plan.
Step 2: Explore the QuickBooks Online Payroll Plans and Their Features
QuickBooks Online Payroll offers three main subscription tiers, each with a different set of features and corresponding price point. Let's break down what each one offers.
Sub-heading: QuickBooks Payroll Core
This is the most basic and affordable plan, perfect for small businesses with straightforward payroll needs.
Cost: Around $50 per month, plus $6 per employee per month. (Note: Prices are subject to change, and Intuit has announced some increases going into effect in late 2025. This is a general guideline based on recent information.)
Key Features:
Full-service payroll: QuickBooks handles the calculations, filings, and payments of your federal and state payroll taxes for you. This is a massive time-saver!
Automated taxes and forms: Say goodbye to manual tax form generation. The system automatically handles forms like W-2s and 941s.
Next-day direct deposit: Pay your employees quickly and securely.
1099 E-File & Pay: You can also manage and file 1099 forms for your contractors.
Expert product support: Get help when you need it via phone or chat.
Employee portal: Employees can access their pay stubs and W-2s online.
This plan is a great entry point if you want to automate your payroll, ensure tax compliance, and offer direct deposit without a ton of extra bells and whistles.
Sub-heading: QuickBooks Payroll Premium
This plan builds on the Core features and adds valuable tools for businesses that are growing and need more advanced features.
Cost: Approximately $85 per month, plus $9 per employee per month.
Key Features (everything in Core, plus):
Same-day direct deposit: Need to pay employees on the same day you run payroll? This is a game-changer for many businesses.
Mobile time tracking: Employees can track their hours on the go, which syncs directly with payroll.
Expert setup review: A payroll expert will review your setup to ensure everything is correct.
HR support center: Get access to a knowledge base and resources to help with HR-related questions.
Workers' compensation administration: Pay-as-you-go workers' comp and save money by avoiding large, lump-sum payments.
24/7 expert product support: Get help from payroll experts at any time of day.
If you have hourly employees and want to streamline time tracking, or if you need the speed of same-day direct deposit, the Premium plan is a worthy upgrade.
Sub-heading: QuickBooks Payroll Elite
This is the top-tier plan, designed for businesses that want maximum automation, compliance protection, and personalized support.
Cost: Around $130 per month, plus $12 per employee per month.
Key Features (everything in Premium, plus):
Expert setup: A payroll expert will complete your setup for you, ensuring accuracy from day one.
Tax penalty protection: QuickBooks will pay up to $25,000 in penalties if you receive a payroll tax penalty due to an error by them. This offers incredible peace of mind.
Personal HR advisor: Get one-on-one professional help with critical HR issues and custom policies.
Project tracking: Track time and project profitability on the go.
Unlimited state tax filings: If you have employees in multiple states, this feature is invaluable as it is included, unlike the other plans which charge per additional state.
For larger, more complex businesses or those that want a high level of support and liability protection, the Elite plan offers an all-inclusive solution.
Step 3: Calculate Your Estimated Monthly Cost
Now that you know the pricing structure, let's put it into practice. Here's a simple formula to estimate your monthly QuickBooks Payroll cost:
Monthly Base Fee + (Number of Employees x Per-Employee Fee) = Total Monthly Cost
Let's do a quick calculation for a business with 10 employees:
Core Plan: $50 + (10 employees x $6) = $110 per month
Premium Plan: $85 + (10 employees x $9) = $175 per month
Elite Plan: $130 + (10 employees x $12) = $250 per month
Remember to also consider the one-time promotional offers or discounts that Intuit often provides for new subscribers, which can significantly reduce your initial cost.
Step 4: Consider the Add-ons and Additional Costs
Beyond the base plans, there are a few other costs to be aware of:
QuickBooks Online Accounting Software: QuickBooks Payroll is often an add-on to QuickBooks Online accounting software. While you can purchase Payroll as a standalone service, bundling it with an accounting plan (like Simple Start, Essentials, Plus, or Advanced) will typically be more cost-effective. The accounting software itself has its own monthly fee, ranging from around $38 to $275 per month, depending on the plan.
Contractor Payments: If you only pay contractors, there's a separate plan for that, typically around $15 per month for up to 20 contractors, with an additional fee per contractor after that.
Additional State Filings: For the Core and Premium plans, filing in more than one state will incur an additional fee, usually around $12 per state per month. This is included in the Elite plan.
Workers' Compensation Administration Fee: For the Core plan, there may be a small monthly administration fee (currently around $5) for the workers' comp service.
Step 5: Choose the Right Plan for Your Business
So, which plan is right for you? Ask yourself these questions:
How many employees do I have, and do I expect to hire more in the near future?
Are my employees salaried or hourly? (Hourly employees may benefit more from the integrated time-tracking in Premium and Elite.)
How important is fast payment? (Next-day vs. same-day direct deposit.)
Do I need HR support and compliance protection? (Elite offers a personal HR advisor and tax penalty protection.)
Do I have employees in multiple states? (This can make Elite a more cost-effective choice.)
By answering these questions and using the pricing breakdown, you can make a well-informed decision that fits your business needs and budget.
Related FAQ Questions
Here are 10 quick answers to common questions about QuickBooks Payroll.
How to calculate the total cost of QuickBooks Payroll? To calculate the total cost, add the monthly base fee for your chosen plan (Core, Premium, or Elite) to the per-employee fee multiplied by your number of employees.
How to get a discount on QuickBooks Payroll? Intuit often offers discounts for new users or bundles. Check the QuickBooks website for current promotions, such as a percentage off for the first few months or a free trial.
How to add employees to my QuickBooks Payroll plan? You can easily add new employees directly within your QuickBooks Payroll account. Once you add them, the per-employee fee will automatically be applied to your next bill.
How to switch from one QuickBooks Payroll plan to another? You can upgrade or downgrade your plan at any time from within your QuickBooks account settings. The change will typically take effect on your next billing cycle.
How to use QuickBooks Payroll for contractors only? QuickBooks offers a specific plan for paying independent contractors. It is a more affordable option if you do not have W-2 employees.
How to handle multi-state payroll with QuickBooks? The Core and Premium plans charge an additional monthly fee for each extra state filing. The Elite plan includes unlimited state filings.
How to use the auto-payroll feature? The auto-payroll feature is typically available for salaried employees on direct deposit. You can set it up to run payroll automatically, but you still have the option to review and edit it before payday.
How to integrate QuickBooks Payroll with QuickBooks Online Accounting? QuickBooks Payroll is designed to integrate seamlessly with QuickBooks Online accounting software, syncing payroll data directly to your books, which helps with reconciliation and reporting.
How to get tax penalty protection with QuickBooks Payroll? Tax penalty protection is a feature exclusively offered with the QuickBooks Payroll Elite plan. It provides a guarantee that Intuit will pay penalties if they make a tax filing error.
How to track time with QuickBooks Payroll? The Premium and Elite plans include a mobile time-tracking feature through the QuickBooks Time app, allowing employees to log hours that can be imported directly into payroll.