ADP payroll prices and options review – 2024 UK costs guide

Are you looking for ADP payroll costs? As businesses grow and evolve, handling payroll in-house becomes increasingly complex and time-consuming. This is why many UK companies opt to outsource this crucial task to payroll service providers like Automatic Data Processing (ADP).


Video: Answering your common questions about payroll prices and costs

Though outsourcing can bring great convenience and efficiency, it is essential to understand the associated costs to make an informed decision. In this article, we’ll break down the various elements that contribute to the overall cost when utilising ADP for your payroll services.

Subscription plans

ADP offers various plans tailored to different business needs and sizes. Generally, smaller businesses with fewer employees and simpler requirements will find themselves at the lower end of the cost spectrum. Larger organisations with a substantial workforce and more complex needs may opt for a more comprehensive plan, which will naturally cost more.

Pay-as-you-go plans

For smaller businesses or startups, ADP offers pay-as-you-go options that can cost as low as £50 per payroll run for up to 5 employees.

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Fixed-rate plans

Larger corporations may prefer fixed-rate plans that offer an all-inclusive package of services for a monthly or yearly fee. Costs for these plans can range anywhere from £200 to £1,000 per month, depending on the extent of services required.

Additional services and features

ADP offers an array of add-on services and features that can impact the overall payroll costs.

Compliance and taxation

Managing compliance and tax responsibilities is a significant component of any payroll service. ADP offers services such as year-end reporting and P60 distribution, which come at an additional cost.

Time and attendance tracking

If you wish to integrate time and attendance tracking within your payroll system, ADP offers this functionality for an additional fee.

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Human resources management

For businesses seeking a more holistic approach, ADP provides HR solutions that can be integrated with their payroll offerings. These will add to the overall expenditure but can offer substantial benefits in terms of streamlined operations and data consistency.

Software and implementation fees

Initiating a payroll service often involves setup fees. With ADP, expect a one-time implementation fee that can range from £200 to £1,500, depending on the complexity of your payroll requirements.

Contracts and hidden costs

Always read the fine print when signing a contract. Some ADP contracts may include clauses for additional charges, such as for additional reports or termination fees.

Conclusion – ADP payroll prices

Choosing a payroll service is a significant decision that impacts both your company’s finances and operations. Understanding the costs breakdown can help you make a more informed choice and find the ADP payroll service that fits your budget and needs. Remember, the cheapest option isn’t always the best; consider the value and efficiency that the service will bring to your business as well.

ADP alternatives

FAQ for ADP payroll costs

What is the cheapest ADP plan available for small businesses?

The least expensive option offered by ADP is generally the pay-as-you-go plan, which can cost as low as £50 per payroll run for up to 5 employees. However, this cost may vary based on your specific requirements and additional services you might need.

Are there any setup fees for ADP payroll services?

Yes, there are usually one-time implementation fees when you first initiate ADP’s payroll services. These fees can range from £200 to £1,500 depending on the complexity of your payroll requirements.

Can I integrate ADP’s payroll service with other software?

Yes, ADP often provides the option to integrate its payroll services with other software systems, like accounting or human resources software. However, additional charges may apply for these integrations.

Do I need to commit to a long-term contract with ADP?

Contract terms can vary. While some businesses may opt for a month-to-month agreement, others might go for a yearly contract. Make sure to read the contract terms carefully and ask about termination fees and other potential hidden costs.

How does ADP handle compliance and tax filing?

ADP offers compliance and taxation services as part of their payroll offerings. These services handle tasks such as year-end reporting and P60 distribution. While some plans include these services, others may require you to pay extra.

Is customer support included in the cost?

Basic customer support is typically included in the ADP subscription costs. However, if you require dedicated support or more immediate response times, additional fees may be incurred.

Can I customise my ADP payroll package?

Yes, ADP offers a range of additional services like time and attendance tracking, HR solutions, and more. These can be added to your payroll package for an extra fee, allowing you to customise the service according to your business needs.

Is ADP suitable for businesses with a global workforce?

ADP offers global payroll services that can handle multiple currencies and tax regulations, making it suitable for businesses with an international presence. Naturally, the costs for global services are higher and would need to be discussed directly with ADP for a tailored quote.

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