Payroll Services Revenue Benchmarks

How much does the average payroll business make? Here are revenue benchmarks based on Census Bureau data.

Average Revenue

$8.5M

per year

💰

Profit Margin

22.0%

industry average

📈

Revenue / Employee

$153K

per year

👤

Total Businesses

4,434

in the US

🏢

Est. Owner Income

$1.9M

small business avg

💵

Labor Cost

50.0%

of revenue

👥

Avg Employee Wage

$94K

per year (BLS)

💼

Market Saturation

1.3

firms per 100K people

🎯

💰 Average Revenue by Business Size

1-4 employees
$256K
5-9 employees
$839K
10-19 employees
$1.6M
20-99 employees
$4.9M
100-499 employees
$18.7M
500+ employees
$148.1M

🏆 Highest Revenue States

1.Maine$25.8M avg2.New Jersey$17.9M avg3.Illinois$17.8M avg4.Georgia$16.4M avg5.Oklahoma$16.3M avg6.California$11.6M avg7.Colorado$10.8M avg8.New York$9.6M avg9.Arizona$9.2M avg10.Pennsylvania$8.5M avg

📊 Industry Dynamics (Census BDS 2023)

New Business Rate

9.66%

openings/year

Closure Rate

9.23%

closings/year

Net Job Growth

+4.24%

annual

Businesses Closed

8,967

in 2023

Firm Count Trend

19
20
21
22
23
99,574 firms104,020 firms

💡 Should You Start a Payroll Business?

Startup Cost

$10K – $75K

Break-Even

0 months

5-Year Survival Rate

60.0%

🆚 Related Industries

Offices of Lawyers$1.5MAdministrative Management and General Management Consulting Services$1.9MCustom Computer Programming Services$3.9MOffices of Certified Public Accountants$1.9MComputer Systems Design Services$4.2M

Compare Payroll Services revenue with other industries:

vs Officesvs Administrativevs Custom