How Much Is QBO Payroll? The Complete Guide To QuickBooks Online Payroll Pricing
Payroll is an integral and time-consuming task for small business owners. QBO Payroll's features and ease of use make it an efficient and competitive product.
When it comes to managing your business, payroll is an integral and time-consuming task. Small businesses that use QuickBooks for their accounting needs may have noticed that the company is always in a state of flux, changing in direct response to client feedback. QuickBooks’ recent revamping of its payroll platform is a testament to that commitment to stay responsive and on-trend.
There are two different versions of QuickBooks payroll products. The QuickBooks Desktop Payroll system works with QuickBooks Desktop Pro, Premier, or Enterprise. However, the QuickBooks Intuit Online Payroll platform is available for QuickBooks Online clients. And, bonus! Adding payroll to your QuickBooks suite is as simple as clicking a button.
Designed for new or current users, QuickBooks Online Payroll (also referred to as Intuit Online Payroll) offers three online payroll pricing structures — all with full-service, automatic payroll options.
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How Much Does QuickBooks Online Payroll Cost?
QuickBooks Online Payroll costs between $45-$125/month plus $4-$10/month per employee, depending on which of the three QBO Payroll pricing plans you choose. Each pricing plan gains you full-service payroll with automated tax support, but the larger the plan, the more additional features and customer support you have access to.
QuickBooks Online Payroll Pricing Plans
All of the QuickBooks Online Payroll pricing plans include full-service payroll. That means even the lowest Intuit Online Payroll price tier includes automatic tax and form filing.
QuickBooks Online Payroll comes at three pricing tiers: Core, Premium, and Elite. The program also has month-to-month contracts and no early termination fees. (QuickBooks also runs deep promotions frequently for its products, so be sure to check for any available discounts before purchasing.)
|Next-Day Direct Deposit||✔||✔||✔|
|Unlimited Payroll Runs||✔||✔||✔|
|Files Federal & State Taxes||✔||✔||✔|
|Files Year-End Forms||✔||✔||✔|
|Garnishments & Deductions||✔||✔||✔|
|Health Benefits Management||✔||✔||✔|
|Same-Day Direct Deposit||X||✔||✔|
|Assisted Payroll Setup||X||✔||✔|
|Tax Penalty Protection||X||X||✔|
Here are the Intuit Online Payroll cost breakdowns:
QuickBooks Online Core Payroll
The most basic payroll program, Core’s Payroll plan, costs $45/month + $4/per employee and includes:
- Next-day direct deposit
- Unlimited payroll runs
- Calculates paychecks
- Calculates and files federal and state taxes
- Calculates and files year-end forms
- Expert support
- Workplace portal
- Manages garnishments and deductions
- Offers reporting features
- Health benefits management
This program has everything needed to pay employees and file taxes. Advanced HR and payroll support are not available at the Core level, so this is best for small businesses with simpler needs.
QuickBooks Online Premium Payroll
QuickBooks Online Payroll Premium Payroll plan costs $75/month + $8/per employee and includes everything in the Core Payroll plan, plus:
- 24-hour same day direct deposit
- Automated payroll
- HR support
- Worker’s compensation administration
- Assisted payroll setup
- Help from US-based expert support staff
- Time tracking
QuickBooks Online Elite Payroll
QuickBooks Online Payroll’s Elite Payroll plan costs $125/month + $10/per employee and includes everything in the Premium Payroll plan, plus:
- HR support with a personal HR advisor
- White glove customized setup
- Track time and projects on the go
- Tax penalty protection
- 24/7 product support
Also, QuickBooks currently has a promotion where you can get your first three months of payroll for half off.
Extra QuickBooks Online Payroll Costs & Fees
Intuit QuickBooks Online Payroll does have some additional costs per month, depending on your small business needs:
- Workers’ Compensation Insurance: Most businesses with one or more employees across the 50 states will need workers’ compensation as a legal business requirement. Workers’ comp pays for medical expenses and lost wages if an employee is injured on the job. Intuit partners with AP Intego’s pay-as-you-go workers’ compensation insurance. There is a $5 monthly fee to use this service. Premiums for workers’ comp will depend on how many employees you have and what type of business you operate.
- QuickBooks Simple Start/Essential/Plus: Tracks income, expenses, sales, and sales tax; organizes receipts and maximizes tax deductions. The program also creates invoices and accepts payments. This is an additional $25 a month, depending on features.
- Labor Law Poster Subscription Service: All businesses that have an employee or contractor working for them must display or have available all appropriate labor law posters. Posting this information is a legal requirement, but staying on top of new regulations and changes can be tedious for business owners. Payroll customers can access the labor law posters for their state through an add-on subscription, and QuickBooks will send new posters as needed.
- E-File 1099s: In January of each year, your business will need to file the 1099 forms sent out to contractors. This service helps prepare your 1099s via an auto-fill from your Intuit QuickBooks Online Payroll information. You can send PDFs to contractors, and QuickBooks will e-file them for you. This additional service is available for $14. You can also order tax forms and other business forms, such as checks, directly through QuickBooks.
- Multistate Processing Fees: If you process payroll for people in different states, you can expect to pay a $12 processing fee per state.
- Medical/Dental/Vision: QuickBooks partners with Simply Insured to offer health benefits options to your team.
Which QuickBooks Online Pricing Plan Is Right For You?
When it comes to determining which pricing plan for QBO Payroll is right for your business, you will need to decide how much you can afford and how much work you want to put into payroll. At the Core pricing level, the automated tax filings, basic reporting features, and basic benefits management programs are enough to help a small business with a handful of employees. As a business grows and the HR requirements increase, the offerings at the Premium and Elite levels may align better.
The tax penalty at the Elite level is a great added layer of security, and it comes partnered with a white glove/curated experience for business owners short on time. If your company does not have a bookkeeper, accountant, or HR team in charge of payroll and benefits management, QuickBooks can keep your payroll seamless while offering tools to meet those other needs.
Choose The Intuit Online Payroll Core Plan If…
- You’re a small business owner with traditional payroll needs
- You have a limited number of employees and want to use direct deposit
- Your small business needs tax support
Choose The Intuit Online Payroll Premium Plan If…
- You need automated payroll
- Your small to mid-sized business needs HR support
- Expanded customer service is important
Choose The Intuit Online Payroll Elite Plan If…
- You have a larger business with more extensive HR needs
- You are interested in a customized set-up
- You need tax penalty protection
Are There Cheaper Options Than Intuit Online Payroll?
While QuickBooks Online is a reputable company with plenty of features, there are plenty of alternatives to QuickBooks for payroll support that you can find for cheaper. Here are a few of our top choices.
Gusto has been on the rise for a handful of years now, offering affordable and professional payroll services to more than 100,000 businesses. Gusto offers basic reporting, onboarding, and health insurance administration with all of its plans. The Basic plan starts at just $19/month + $6/month per person, and its Core and Complete plans start at $39/month. There is also a Concierge service for $149/month.
There are additional add-ons, such as health benefits, 401k plans, and college savings plans, that you can sign up for as well.
Square has become much more than a convenient payment processing company. Along with a point of sale platform, Square also offers a payroll service. If you are only paying independent contractors, the payment plan is simple. You pay $5/month per contractor on your payroll. If you have salaried employees as well, you pay $29/month plus $5 per employee/month.
There are no contracts, and you can also add additional features, such as health benefits, 401(k), and workers’ compensation.
How To Add Intuit Online Payroll To Your QuickBooks Online Account
Is it time to add Intuit QuickBooks Online Payroll to your business? With the recent changes to its payroll platform, QuickBooks proves that it wants to remain a small business’s best option when it comes to business software. While you might have to pay extra for that Elite service, the features and ease of use at all levels mean that QuickBooks should be in contention if you need to add a payroll system. If you are already a fan of QuickBooks, then Intuit QuickBooks Online Payroll will easily win your heart with its efficient and competitive product.
If you’re ready to add payroll to QuickBooks Online, read our complete post on how to set up and run payroll in QuickBooks Online. You can sign up directly through the QuickBooks Online dashboard and select your subscription plan directly from there. After you answer a few basic questions, you can then start adding your employees. Here, you’ll add their information and pay rate along with withholdings, deductions, and other information. After that, you can add your worker’s comp policy and set up your payroll taxes. Finally, you can then connect to your bank account and sign your tax forms. It can seem complicated, but QuickBooks Online walks you through the entire process.