Payroll that runs on time. Every time.

Payroll service pricing varies based on how many employees you have and how often you run payroll. For most small businesses with one to ten employees running bi-weekly payroll, a full-service payroll provider typically costs between $50 and $200 per month. That covers processing, direct deposit, tax filings, and compliance. The cost of getting payroll wrong — penalties, back taxes, employee disputes — is almost always higher than the cost of doing it right from the start.

Payroll tax errors are among the most expensive mistakes a small business can make. The IRS charges penalties for late deposits, incorrect filings, and misclassified workers. These penalties can reach 15 percent of the unpaid tax, and they compound. Beyond the IRS, incorrect payroll can create legal exposure with employees. Having a payroll service handle filings and deposits eliminates most of this risk because the responsibility and the liability shift.

Yes. Even with one employee, payroll involves federal and state tax withholding, unemployment insurance, Social Security and Medicare matching, quarterly reports, and year-end W-2 preparation. The administrative burden of doing this correctly on your own is significant, and the penalty for errors is the same regardless of how many employees you have. A payroll service pays for itself in time saved and mistakes avoided.

Employees require withholding, employer tax matching, and W-2 forms. Independent contractors are paid without withholding and receive 1099 forms. Misclassifying an employee as a contractor is one of the most audited areas by the IRS and Rhode Island Department of Labor. The test is based on behavioral control, financial control, and the nature of the relationship — not what you call them in a contract.

Yes. Premium Services Corporation handles payroll for any combination of salaried, hourly, part-time, and contractor arrangements. We manage different pay rates, overtime calculations, and varying pay schedules within the same business. Everything is handled accurately and on time regardless of how complex your workforce structure is.