The three common pricing models
- Per payslip: you pay a fixed amount for each payslip produced, usually with a monthly minimum. Simple, and costs move with your headcount. This is how Buffalo Payroll charges.
- Per employee per pay run, with a higher minimum: similar in principle, but some bureaus set a monthly minimum that makes them expensive for very small payrolls.
- Fixed monthly packages: a set fee for a band of employees. Predictable, but you may pay for capacity you don't use.
What a small payroll costs with Buffalo
At £5.50 + VAT per payslip, with a £16.50 + VAT monthly minimum and £25 + VAT per month for pension administration:
| Employees (monthly pay) | Payroll per month | Including pension admin | Per year incl. pension admin |
|---|---|---|---|
| 1 director | £16.50 | n/a | £198 |
| 5 | £27.50 | £52.50 | £630 |
| 10 | £55.00 | £80.00 | £960 |
| 25 | £137.50 | £162.50 | £1,950 |
| 50 | £275.00 | £300.00 | £3,600 |
All figures exclude VAT. One-director companies can save 10% by paying annually.
What should be included
When you compare quotes, check whether these are included or charged as extras:
- All RTI submissions (FPS and EPS) to HMRC
- Starters, leavers and P45s
- Statutory payments such as SSP and maternity pay
- Year-end P60s
- Online payslips
- Pension auto-enrolment administration
- HMRC liaison
- Phone support from a named team
Is outsourcing cheaper than doing it yourself?
Often, yes. Payroll software costs money, but the bigger cost is your time: processing, checking, keeping up with April changes, handling pension uploads and fixing errors. If payroll takes a business owner three hours a month, a bureau charging £55 a month for ten staff is usually the cheaper option before you even count the cost of mistakes.