How Much Does Payroll Outsourcing Cost in Lincoln, NE?

In today’s fast-paced business landscape, managing payroll efficiently is crucial for businesses in Lincoln, Nebraska (NE), and beyond. Payroll outsourcing is a viable solution for small to medium-sized businesses, HR managers, and finance professionals looking to streamline their payroll processes. In this comprehensive guide, we’ll delve into the world of payroll outsourcing costs in Lincoln, NE, exploring the factors that influence them, the average cost range, benefits, and ways to address common objections.

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Factors Influencing Payroll Outsourcing Costs

  1. Company Size Matters: The size of your business plays a significant role in determining payroll outsourcing costs. Larger businesses often benefit from economies of scale, which means the cost per employee tends to be lower. For instance, a mid-sized manufacturing company with 200 employees may pay an average of $60 per employee per month for payroll outsourcing, while a smaller local retailer with 20 employees might pay around $80 per employee per month due to the scale factor. This variance emphasizes the importance of assessing the size of your business when estimating outsourcing costs.
  2. Service Package Options: Payroll service providers offer various packages with different services included. The level of service you choose will directly impact the cost. Basic packages, typically ranging from $40 to $60 per employee per month, cover essential payroll functions, such as payroll calculation, direct deposit, and year-end tax forms. On the other hand, premium packages, with prices ranging from $100 to $150 per employee per month, offer additional services like tax filing, benefits administration, and HR support. To determine the most cost-effective option for your business, consider your specific payroll needs. For example, if you have a small business with 15 employees and only require basic payroll processing, you might find that a package in the lower price range adequately serves your needs.
  3. Complexity of Payroll Needs: The complexity of your payroll requirements can significantly influence costs. For instance, handling payroll for employees in multiple states or managing diverse compensation structures can increase costs. A regional software development firm with 50 employees, some of whom work remotely from other states, may pay around $85 per employee per month for payroll outsourcing services. In contrast, a local family-owned restaurant with 25 employees might only pay $50 per employee per month because of its straightforward payroll structure.
  4. Local Factors and Location Impact: Local factors, including the cost of living in Lincoln, NE, can influence payroll outsourcing costs. Generally, areas with higher living costs may have slightly higher service rates. However, it’s essential to consider the value you’re receiving in return. A tech startup in Lincoln with 30 employees may pay an average of $70 per employee per month for payroll outsourcing, which accounts for the city’s relatively lower living costs compared to larger metropolitan areas. However, they enjoy quality service and proximity to their chosen provider.
  5. Additional Services and Costs: Some payroll providers offer extra services beyond basic payroll processing. These can include tax preparation and filing, employee benefits administration, and HR support. While these services can add to the overall cost, they can also simplify your business operations and lead to cost savings in other areas. A growing marketing agency in Lincoln, NE, with 75 employees might opt for a comprehensive payroll outsourcing package priced at approximately $110 per employee per month. While this is higher than basic packages, it includes not only payroll processing but also benefits management and tax compliance, ultimately reducing the agency’s overhead costs and administrative burden.

Average Cost Range for Payroll Outsourcing in Lincoln, NE

Based on data from January 2022, the average cost for payroll outsourcing in Lincoln, NE, falls within the range of $40 to $150 per employee per month. However, this range is quite broad, and your actual cost will depend on several factors.

Here’s how to navigate this cost spectrum effectively:

  • Understanding Your Needs: Assess your business’s unique payroll needs and the level of service required. A simple payroll process for a small business may fall on the lower end of the range, while a larger company with complex needs might pay more. For example, a local construction company with 10 employees might find that basic payroll outsourcing at $45 per employee per month meets their requirements, as their payroll process is straightforward. In contrast, a regional medical practice with 50 employees may opt for a premium package at $120 per employee per month, given their need for comprehensive HR support and benefits management.
  • Comparing Providers: To find the best fit for your business, request quotes from multiple payroll service providers in Lincoln, NE. Compare their pricing, services, and reputation to make an informed decision. Let’s consider a case study to illustrate this. A rapidly expanding e-commerce startup in Lincoln with 75 employees decided to explore payroll outsourcing options. They received quotes from three reputable providers: Provider A offered a basic package at $55 per employee per month, Provider B provided a comprehensive package at $100 per employee per month, and Provider C offered a mid-tier package at $75 per employee per month. After careful evaluation, the startup opted for Provider C’s mid-tier package, which struck a balance between cost and services, aligning with their growth trajectory and budget.
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Benefits of Payroll Outsourcing

Outsourcing your payroll comes with numerous benefits that can positively impact your business’s efficiency and bottom line:

  • Save Time and Reduce Errors: By outsourcing payroll, you can save valuable time that would otherwise be spent on manual payroll processing. This also reduces the risk of costly errors, such as tax calculation mistakes. For instance, a local retail chain with 30 employees experienced significant time savings by outsourcing their payroll. They estimated that by automating the process, they saved approximately 10 hours per month, which allowed their HR team to focus on strategic initiatives.
  • Cost Savings and Reduced Overhead: Payroll outsourcing can lead to cost savings, including reduced overhead costs associated with maintaining an in-house payroll department. Additionally, outsourcing can help ensure compliance with tax regulations, reducing the risk of costly penalties. Consider a case study of a mid-sized manufacturing company in Lincoln with 150 employees. Before outsourcing payroll, they had a dedicated in-house payroll team consisting of two full-time employees. The annual cost of salaries, benefits, and software maintenance for this team amounted to $120,000. By outsourcing payroll for an average cost of $60 per employee per month, they saved approximately $60,000 annually.
  • Streamlined Processes for Efficiency: With professional payroll services, you can streamline your business operations, improve efficiency, and allocate resources to more critical tasks. This can lead to increased productivity and profitability. Let’s look at a case study involving a local healthcare provider in Lincoln with 50 employees. Before outsourcing, they faced challenges in managing payroll, which led to frequent errors and delayed payments to employees. After opting for a comprehensive payroll outsourcing package, they not only achieved error-free payroll processing but also reduced the time spent on administrative tasks by 30%. This allowed them to focus on providing quality patient care.
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Choosing the Right Payroll Outsourcing Solution

When considering payroll outsourcing, it’s essential to follow a strategic approach to find the right solution for your business:

  • Evaluating Your Business Needs: Start by assessing your specific payroll needs and requirements. Determine what level of service will best meet those needs. Consider the case of a Lincoln-based non-profit organization with 30 employees. Their primary concern was compliance with tax regulations and the need for detailed reporting. By evaluating their unique needs, they selected a provider that specialized in non-profit payroll services, ensuring accurate reporting and compliance.
  • Comparing Service Providers: Research and compare different payroll outsourcing service providers in Lincoln, NE. Look at factors such as their reputation, experience, pricing transparency, and client reviews. A practical example is a local manufacturing company with 60 employees. They took the time to research multiple providers, focusing on factors such as customer feedback and provider responsiveness. Their diligent research paid off when they found a provider that offered competitive pricing, excellent customer service, and a track record of reliability.

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Tax Filing

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Payroll Companies in Lincoln, NE

TAC Payroll Solutions LLC

770 N Cotner Blvd Suite 115, Lincoln, NE 68505

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Padgett Business Services

3701 O St, Lincoln, NE 68510

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Burr Business Service

1655 S 25th St, Lincoln, NE 68502

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Payroll Outsourcing Case Studies in Lincoln, NE

Case Study 1: Small Business – Local Retailer

  • Business Profile: A local retailer in Lincoln, NE, with 20 employees.
  • Payroll Outsourcing Solution: Basic payroll package at $80 per employee per month.
  • Outcome: By outsourcing payroll, the retailer saved approximately 15 hours per month, enabling them to focus on sales and customer service. The cost of

Case Study 2: Medium Business – Regional Software Development Firm

  • Business Profile: A regional software development firm with 50 employees, including remote workers.
  • Payroll Outsourcing Solution: Comprehensive payroll and HR support package at $85 per employee per month.
  • Outcome: The firm achieved accurate payroll processing for remote employees across multiple states. The HR support helped streamline employee management, leading to increased efficiency and cost savings.

Case Study 3: Large Business – Growing Marketing Agency

  • Business Profile: A growing marketing agency in Lincoln, NE, with 75 employees.
  • Payroll Outsourcing Solution: Mid-tier package at $110 per employee per month.
  • Outcome: The agency balanced cost-effectiveness with comprehensive services, aligning with their growth trajectory. Outsourcing allowed them to allocate resources strategically and reduce administrative overhead.

Lincoln’s Business Landscape and the Future of Payroll Processing

Lincoln, NE, boasts a dynamic business landscape that continues to evolve. The city is known for its thriving technology sector, with companies specializing in software development and innovation. One landmark specific to Lincoln is the Nebraska State Capitol, a magnificent architectural masterpiece. As businesses in Lincoln adapt to modern challenges and opportunities, payroll processing services are keeping pace. The future of payroll processing in Lincoln is marked by automation, increased data security measures, and tailored solutions that cater to the unique needs of businesses in the city. With an emphasis on efficiency and compliance, Lincoln’s businesses are well-positioned to thrive in the ever-changing landscape.

In conclusion, understanding the cost of payroll outsourcing in Lincoln, NE, is crucial for businesses looking to optimize their payroll processes. By considering factors like company size, service packages, complexity, location, and additional services, you can make informed decisions about outsourcing. Remember that the average cost range is just a starting point; your actual cost will depend on your unique circumstances. The benefits of outsourcing, including time savings, cost reduction, and increased efficiency, make it a viable option for businesses of all sizes.


  1. Is payroll outsourcing suitable for small businesses in Lincoln, NE?
    Yes, payroll outsourcing can benefit small businesses by saving time, reducing errors, and ensuring compliance with tax regulations.
  2. How can I ensure the security of my payroll data when outsourcing?
    Choose a reputable payroll service provider with strong data security measures in place and a history of safeguarding sensitive information.
  3. Is there a one-size-fits-all cost for payroll outsourcing in Lincoln, NE?
    No, the cost of payroll outsourcing varies based on several factors such as the number of employees, pay cycle frequency, and any additional services you require.
  4. Can I negotiate the costs with a payroll service provider in Lincoln, NE?
    It depends on the service provider. Some might be open to negotiation, especially if you have a large number of employees or need multiple services.
  5. Why do payroll service providers charge a per-employee fee in Lincoln, NE?
    The per-employee fee covers the cost of processing individual employee’s payroll and tax calculations. The more employees, the more work, hence the per-employee fee.

Zip Codes Served: 68336, 68430, 68502, 68503, 68504, 68505, 68506, 68507, 68508, 68510, 68512, 68514, 68516, 68517, 68520, 68521, 68522, 68523, 68524, 68526

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