Are you managing your payroll properly? Efficient payroll management leads to profit for businesses. However many businesses make payroll errors that cost them a lot of money. You won’t believe that over 90% of businesses in the UK and Ireland make occasional payroll mistakes. These simple calculation mistakes are responsible for thousands of dollars in losses every year – you should hire a payroll specialist to keep your workers compensated on time.
Payroll specialists create payroll reports, process wages, deduct taxes, issue employee paychecks, check overtime pay, track records of paid & unpaid wages, ensure compliance with state, federal, and local payroll laws, and handle inquiries regarding payroll discrepancies.
Business owners can breathe a sigh of relief and focus on more important parts of their business after a payroll specialist has been hired. But the cost of hiring this specialist may be different – based on whether you're hiring an in-house or a virtual assistant (VA).
This article gives you actionable updates on how much it costs to hire a payroll expert today. We will look into practical ways to make your payroll great again! You will see how hiring a virtual expert to run your payroll will help your employees get timely payment without errors and on time.
Stop overpaying your workers by mistakes with virtual payroll management.
What’s the Cost of Hiring a Payroll Specialist Cost in 2025?
A study says that more than 50% of organizations still rely on spreadsheets for managing payroll. What would it cost them to hire a payroll expert?
Payroll Specialist Costs in the U.S.
- Junior Specialist:$30,000–$54,000 annually
- Mid-Level Specialist:Up to $78,000 annually
- Senior Specialist:$78,000–$102,000 annually (depending on experience and job requirements)
Payroll Specialist Costs in the U.K.
- Entry-Level Specialist:£27,000 annually
- Average Cost:£32,000 annually
- Experienced Specialist:£65,000+ annually (higher in London: £26,000–£70,000 annually)
Factors Affecting Payroll Specialist Salaries:
- Industry: Salaries vary significantly in industries like finance and healthcare.
- Business Size: Larger organizations may require more experienced specialists.
- Location: Costs differ by region, especially in high-cost cities like London.
By considering these factors, businesses can better estimate the true cost of hiring a payroll expert in 2025.
What’s the Cost of Hiring an In-House Payroll Specialist?
The salaries of payroll specialists will be very different and you will notice major shifts in them when we make a comparison of in-house payroll experts and freelancers. The most expensive option for your company might be to hire an in-house expert. It’s true for small companies and large companies at the same time.
Hiring a Junior-Level Payroll Specialist
You can check the salary entries on many job portals in the US and also in the UK if you want. We see that in-hour payroll specialists seem to make around $51,000 annually. But entry-level positions start at $40,000. In the UK, the cost of hiring a senior payroll manager is £27.5k – for entry-level positions.
Hiring a Senior-Level Payroll Specialist
Many job portals say that the cost of hiring an in-house payroll expert goes from $72,000 to $102,000 a year – a payroll manager in the UK would cost you around £65,000 per year.
Additional Costs
When budgeting for an in-house payroll specialist you should consider additional costs, such as health insurance benefits, payroll taxes, payroll software solutions, etc.
You’ll also have to account for retirement contributions and employee training. The costs aren’t factored in the salary assessments shared with you in the above subheadings.
How Much Does a Part-Time Payroll Specialist Cost?
Instead of hiring an in-house specialist – many businesses prefer to get a part-time payroll specialist. £27.40 is the per-hour rate to hire part-time payroll managers. However the payroll expert’s experience and how complex their services are will change this pricing.
Payroll managers who work in the UK will ask for a very expanding price range that is £15 to 30. You would pay more to hire a payroll manager whose expertise and experience are very unique.
To make it simpler, the cost of hiring a freelance bookkeeping expert will vary based on experience and your industry. Freelancers provide flexibility to business owners. They bring specialized skills to the job and allow companies to scale their payroll services according to workload demand.
Payroll Outsourcing Services: Monthly & Per-Worker Costs
Many businesses prefer to hire a payroll specialist for a limited time. But the cost of hiring this expert depends on your staff size and how many workers you have whose wages will be calculated. We call this one “outsourcing” of your payroll management tasks.
Monthly Costs
The monthly cost of hiring a payroll expert can range from $50 to $200 per month (depending on the size of your business). That’s why we also need to look into the per-employee basis of compensating your payroll expert.
Per-Employee Costs
In addition to the base fee – outsourcing agencies will also charge a per-employee fee – averaging between $5 and $7 per worker. A company would pay around $60 a month plus an extra $250 to $350 per payroll cycle.
It’ll end up taking their overall payroll expenses to up to $3.6k for a small business (50 workers max), $8.4k for a medium-sized business (200 workers max), and $18k for a large business (200+ workers).
Pros and Cons of Outsourcing Payroll Services
Many businesses outsource payroll because around 30% of them believe that it consumes too much of their time – hiring a payroll specialist from such agencies has its pros and cons.
Let’s get started with the pros:
- Outsourcing is kind of more affordable than maintaining in-house payroll systems – it’s true when we factor in software and staffing costs.
- Payroll experts have a specialty in tax law compliance.
- They reduce the risk of making costly mistakes.
- Working with these experts is a great way for your staff to free its time and focus its attention on core business functions and not worry about admin tasks too much.
The cons of outsourcing payroll services are:
- Loss of control over wage processing – and depending too much on third-party service providers can be a big headache.
- You may worry be hidden costs as well as direct deposits and end-of-the-year processing. It’s a major problem. This is why you will learn about the full pricing structure from the early stage.
A Cost-Efficient Alternative Is To Hire A Virtual Payroll Specialist
The cost factor of hiring a payroll work specialist is very interesting. You can manage your wages by hiring a payroll person who works virtually.
You may compare the cost of hiring a payroll specialist with an in-house specialist and then with an outsourced specialist. The first option is the most cost-saving!

Key Insights:
- Virtual Payroll SpecialistsPart-time: Ideal for small businesses needing limited support.
Full-time: Affordable and flexible for growing businesses. - In-House Payroll SpecialistsHigher salaries ($2.5k–$8.5k/month) and overhead costs make them less cost-efficient.
- Outsourced Payroll ServicesCosts start at $1,000/month and increase for large organizations with 200+ employees.
A virtual payroll specialist offers the most cost-effective solution, especially for businesses aiming to balance quality and affordability.
Benefits of Hiring Virtual Payroll Services
Here’s at Wing your assistant is dedicated to only your business; they'll learn and improve and get better at your processes over time.
Our assistants only work with one client, ensuring your work is prioritized. All clients receive access to the Wing Assistant app—a specialized app, perfected using our years of experience managing remote teams.
Hiring a virtual payroll manager will cost you between $700 and $1,100 a month – but the pros of this are manifold. A virtual payroll specialist comes with lower overhead costs.
This person offers flexible plans – that allow for easy scaling – and provides full administrative support. That’s why a payroll VA is an ideal choice for businesses.
Recent surveys by the Access Group have pointed out that 39% of managers describe payroll services as a key driver of engagement among employees and a major player in raising their productivity levels.
Business owners can choose Wing Assistant’s payroll management service to save money.
Why is the Wing Assistant A Good Choice for Payroll Management?
You can save money and see no compromise on quality if you work with a payroll specialist who is given to you by the Wing Assistant. Many companies want to hire payroll VAs for cost-saving reasons.
You can have budget-friendly payroll services with the Wing Assistant and stop the cost of payroll from hurting your finances. Wing’s virtual payroll expert costs you $699 for part-time. You can pay $1,099 for a full-time VA. Keep in mind that the salaries of normal in-house payroll VAs will be $30,000.
This pricing structure means that businesses can access quality payroll services without the overhead costs that come with hiring full-time employees.
The Wing Assistant’s payroll specialist will give you flexible working hours and very good adaptability – you can make sure that your payroll tasks are handled without delay. This trained specialist will keep providing you with ongoing & quality support.
These services also go beyond payroll management. The payroll specialists by the Wing Assistant also offer additional administrative support – this support makes them very valuable to businesses.
A payroll specialist can help out with HR-related tasks like recruitment and employee onboarding. That’s how virtual payroll experts become a single point of contact for your administrative needs.
Many companies note payroll processing time saving and cost-efficiency – so they can allocate resources efficiently. A certain testimonial that was probably written by a mid-sized company tells us that the Wing Assistant saved them over 30% on payroll management.
How to Choose the Best Payroll Management Option for Your Business?
You can get a payroll manager virtually for your small business and save money that you’d have spent on getting an in-house payroll expert.
A virtual payroll expert will offer you more flexibility and can also meet your startup’s specific needs. We can look at the pros and cons of hiring this expert. It’ll make us decide better about what payroll VA is better.
In-House Payroll Management
An in-house payroll person will give you more control over how your payroll is processed and they will give you straight-away access to payroll expertise. But the cost of hiring this expert is very high.
Outsourcing Payroll Services
Are you a business interested in outsourced payroll services? You get access to specialized expertise and compliance support – these are the two pros. The cons of outsourcing these experts include less control over your payroll process and potential hidden fees – these cons come with long-term contracts. Hiring an outsourced payroll specialist will indeed cost less than onboarding an in-house one.
Virtual Payroll Specialists
Hiring a virtual specialist from the Wing Assistant costs around $699 per month for part-time support! One can see it’s lower than hiring an in-house specialist or using traditional outsourcing options.
Their scalable solutions can adapt to your startup’s changing needs without long-term commitments. You get flexible services and find trained payroll pros! Who will support you constantly and you will get the help that you need for admin tasks!
Last Remarks: Making the Right Payroll Investment in 2025
Are you interested in Wing Assistant’s services, the best VA provider in the US? You must be clear that hiring an in-house payroll management specialist will set you back by thousands of dollars.
A money-saving option is for companies to hire a virtual payroll management specialist. Wing’s VAs will cost you less than a grand each month and you get very high-quality payroll services.
You can book a free demo to learn how payroll specialists help your company grow.
You should explore Wing's services to integrate virtual assistants into your humdrum business operations hassle-free. Visit the Wing Assistant’s website to learn more and get started with a virtual assistant today! Schedule a free, amazing consultation with a payroll expert right away.

Dianne has extensive experience as a Content Writer, she creates engaging content that captivates readers and ranks well online. She stays on top of industry trends to keep her work fresh and impactful. She has a talent for turning complex ideas into relatable stories. When she’s not writing, you’ll probably find her with a crochet hook in hand or working on a fun craft project. She loves bringing creativity to life, whether it’s through words or handmade creations.