Payroll service pricing in Virginia generally combines a monthly base fee with a per-employee fee. Entry-level plans from widely used small-business payroll providers published in 2026 start at roughly $17 to $50 per month plus $4 to $6.50 per employee per month. Full-service providers that add HR support, benefits administration, or a dedicated representative price by quote, so the total depends on the services selected. Request a free payroll quote for pricing specific to a business.
Payroll Cost Examples by Business Size
Applying those published entry-level rates, base fee plus per-employee fee, produces the following illustrative monthly ranges for core payroll processing:
- 10 employees: about $57 to $115 per month.
- 25 employees: about $117 to $213 per month.
These figures cover entry-level processing only. They are calculations from published starting rates, not quotes, and they do not include optional add-ons. Plans that include HR support, benefits administration, or a dedicated representative cost more.
What Affects Payroll Service Pricing
Number of employees and contractors. Most providers charge per worker, so cost scales with headcount. Some providers also charge for each 1099 contractor paid through the system.
Services included. Payroll processing, direct deposit, and tax filing form the core service. HR support, benefits administration, time and attendance tracking, and retirement plan administration are typically priced separately or bundled into higher tiers.
Tax filing scope. Employers file federal payroll taxes under IRS deposit rules, plus Virginia state income tax withholding and quarterly Virginia Employment Commission (VEC) unemployment reports. Providers that handle these filings directly, rather than leaving them to the employer, typically price that responsibility into the plan. The IRS employment tax deposit rules describe the federal requirements.
Level of support. Software-only plans leave setup and troubleshooting to the employer. Plans with a dedicated representative include that support in the price.
How Full-Service and PEO Pricing Differs
A Professional Employer Organization (PEO) is priced differently from a payroll company. According to the U.S. Chamber of Commerce, PEO fees are usually a percentage of payroll, ranging from 2% to 15%, because they bundle payroll taxes, workers’ compensation, and benefits. Payroll-only services generally carry lower monthly costs.
Frequently Asked Questions
What is the average cost of a payroll service?
Published entry-level plans in 2026 start at roughly $17 to $50 per month plus $4 to $6.50 per employee. A business with 10 employees would pay about $57 to $115 per month for core processing on those plans. Full-service pricing is quoted individually.
Is there a free payroll service?
Some software tools offer limited free trials or tiers, but core payroll plans with tax filing are generally paid. Free options typically do not include compliance support or a dedicated representative.
Is it cheaper to outsource payroll or do it in-house?
In-house payroll avoids a service fee but requires staff time and payroll software, and the employer carries the responsibility for accurate federal and Virginia tax filings. A late VEC quarterly report carries a $100 penalty, and interest accrues on unpaid tax. Outsourcing moves that administrative work to the provider for a predictable monthly fee.
Do payroll costs differ across Virginia cities?
Provider pricing is based on business size and services, not city. Virginia payroll obligations (state withholding and VEC reporting) are the same for employers in Richmond, Virginia Beach, Newport News, and elsewhere in the state.
For a cost estimate based on a specific business’s size and needs, request a free payroll quote from Capital Payroll Partners, or review Capital Payroll Partners’ pricing.