Choosing how to run payroll is one of the most consequential back-office decisions a Florida small business makes. It touches taxes, compliance, benefits, and the employee experience — and the wrong choice can cost far more than the fees you see on an invoice.
Option 1: Payroll software (self-run)
Popular platforms let you run payroll yourself for roughly $40–$80 per month plus a per-employee fee. Best for 1–10 employees with simple payroll, no workers' comp complexity, and an owner or office manager comfortable handling quarterly filings and year-end forms.
Watch out for: handling workers' comp audits, state unemployment setups, benefits administration, and HR compliance — none of which are included.
Option 2: Bookkeeper or accountant-run payroll
A local accountant runs your payroll using professional software. Typically $100–$400 per month depending on complexity. Best for businesses that want a human in the loop but don't yet need HR or benefits support.
Watch out for: narrow scope — most bookkeepers won't handle HR questions, benefits enrollment, or compliance outside payroll.
Option 3: ASO (Administrative Services Organization)
An ASO runs your payroll and can also handle HR support, benefits administration, and compliance — without becoming a co-employer. Typically $30–$60 per employee per month for payroll plus HR, with benefits and workers' comp kept separate.
Option 4: PEO (Professional Employer Organization)
A PEO bundles payroll, workers' comp, benefits, and HR under one co-employment relationship. Admin fees typically run $40–$160 per employee per month, but workers' comp and benefits often cost less through the PEO's master programs than a small employer would pay individually. Best for businesses 5+ employees that want the whole back office simplified — especially in industries with meaningful workers' comp exposure.
How to decide
- Under 5 employees, simple payroll → software.
- 5–20 employees, want human support, low comp risk → bookkeeper or ASO.
- 5–150 employees, meaningful workers' comp or benefits needs → PEO is usually the cleanest choice.
- 150+ employees → compare PEO to direct benefits and in-house HR; both can work.
Whatever direction you lean, the best move is to compare two or three options in real numbers, not just marketing pages.