Payroll Services — Average Employee Salary

The average employee in the payroll services industry earns $93,696 per year ($45.05/hour), according to Bureau of Labor Statistics QCEW data.

$93,696
Avg Annual Pay
224,295
Total Employees
12,649
Total Establishments
18
Avg Employees/Business

What Do Payroll Workers Earn?

At $93,696/year (equivalent to $45.05/hour for a full-time worker), payroll services wages are significantly above the national average of ~$65,000.

Higher wages in this industry typically reflect specialized skills, professional certifications, or technical expertise required for the work. Employers competing for talent in this space face elevated labor costs.

The typical payroll services business employs 18 people. These are mid-sized operations where payroll is a significant but manageable expense.

Wages as a Percentage of Revenue

19.8%

For the average payroll services business generating $8.5M/year with 18 employees at $93,696 each, total payroll represents roughly 19.8% of revenue. Labor costs are relatively low compared to revenue — other costs (materials, equipment, overhead) dominate.

What This Means for Business Owners

If you're starting or running a payroll servicesbusiness, here's what the wage data means for your bottom line:

  • Per-employee cost: Budget approximately $121,805/year per employee (salary + ~30% for benefits, taxes, and insurance).
  • Typical team size: 18 employees = ~$1,686,528/year in base payroll.
  • Hourly equivalent: $45.05/hour base — factor this into pricing and project estimates.
  • Revenue needed: With average revenue of $8.5M/business, you need strong utilization rates to maintain healthy margins after payroll.

See how these wages compare to total revenue and profit margins.

View full Payroll Services revenue benchmarks →

Frequently Asked Questions

How much do payroll services employees make?
The average payroll services employee earns $93,696 per year, which is equivalent to $45.05/hour for a full-time worker (2,080 hours/year). This is above the national average of approximately $65,000.
How many people work in the payroll services industry?
The payroll services industry employs 224,295 workers across 12,649 establishments in the United States. The average business in this industry has approximately 18 employees.

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW 2023).