HR outsourcing cost per employee
Cost per employee per month is the only figure in this market that compares two providers honestly, and almost nobody quotes in it. A base subscription plus a per-worker charge, a flat monthly fee, and a percentage of payroll are three different shapes, and until all three are converted the cheapest-looking quote is frequently the dearest.
- median advertised base subscription, per month
- $39
- providers with a price they will print
- 2
- states with measured demand and evidenced cover
- 5
Figures on this page come from the price record on this site: 2 providers checked against their own published pages, median advertised base subscription $39 a month among those that publish one.
- 2 provider pages checkedevery figure matched verbatim to the provider's own page
- Quoted and dated, never estimatedlast verification pass 2026-09-09
- 5 states with evidenced coverevidenced by the provider's own live state page
Advertised prices, checked
| Provider | Base price | Per worker | What it covers | Source | Checked |
|---|---|---|---|---|---|
| ExtensisHR | |||||
| FrankCrum | |||||
| Gusto | |||||
| Insperity | |||||
| Justworks | |||||
| OnPay | |||||
| Patriot Software | |||||
| Paychex | |||||
| Rippling | |||||
| SurePayroll | |||||
| TriNet | |||||
| VensureHR |
Converting any quote into one comparable figure
- Take your real headcount. Everyone paid in a typical month, including part-time and irregular staff, because most per-worker charges are levied per worker paid rather than per worker employed.
- Add every fixed line and divide. Base subscription, multi-state charges and one twelfth of any annual charge, divided by headcount. That is the fixed component per employee.
- Add the per-worker lines. Per-worker charges and any per-employee add-ons, which are already in the right shape and need no conversion.
- For a percentage quote, use your payroll. Multiply monthly gross payroll by the percentage and divide by headcount. Then repeat it at next year's payroll, because that is what you are signing up to.
Where the fixed component bites
Below about ten employees the base subscription dominates, so the effective cost per head is at its worst exactly where budgets are tightest. Two providers with a similar per-worker charge and very different base fees will rank differently at five employees and at fifty, which is why a comparison done at somebody else's headcount tells you nothing.
It also means the cheapest provider for you changes as you grow, and it is worth recomputing at the headcount you expect in a year rather than the one you have today.
Why percentage pricing is the one to watch
A percentage of gross payroll tracks salaries, and the administrative work tracks people. For a small, well-paid team those two diverge sharply, and the fee per employee can be several times a per-employee quote for identical work.
It is not automatically bad: for a large, low-paid workforce it can be the cheaper structure. The rule is simply to convert it, at this year's payroll and next year's, before comparing it with anything.
Common questions
- What is a typical HR outsourcing cost per employee?
- It depends far more on your headcount and state count than on the provider. The published base and per-worker figures on this site let you compute it exactly for the providers that publish, which is more useful than a market average.
- How do I convert a percentage quote?
- Multiply monthly gross payroll by the percentage and divide by headcount, then repeat at the payroll you expect next year, because the fee rises with every raise you give.
- Why does cost per employee change with size?
- Because the base subscription is fixed and spreads across more people as you grow. Below about ten employees it dominates the calculation entirely.
Get quotes for your payroll
Coverage by state
Cite or embed this figure
The advertised base monthly subscription for a US payroll service in the US payroll and PEO market was $39 in September 2026, across 2 checked provider pricing pages recorded in Payroll Services Quotes Price Record.
Cite as: "Payroll Services Quotes Price Record", updated 2026-09-09, https://payrollservicesquotes.com/hr-outsourcing-cost-per-employee/.