The business in one offer
Who it serves
Owners of small trades businesses or professional offices with two to ten employees in a single state who currently run payroll themselves at night or rely on a bookkeeper who wants to drop it. They pay for one responsible person who remembers deadlines, handles new-hire paperwork and answers employee pay questions.
What to sell first
Biweekly payroll for up to ten W-2 employees in one state, using a payroll platform that the client contracts with directly and that debits the client's account: new-hire setup, a pre-approval review each cycle, direct deposit checks, and year-end W-2 review. Excluded: multi-state payroll, benefits administration, bookkeeping, tax advice and holding client funds in your own account.
One state and a cap on headcount keep tax setup and cycle review predictable, so a flat monthly fee works. Having the platform debit the client directly keeps client money out of your accounts and makes your role easier to explain and insure.
What could it cost to start?
This is an original example budget for the limited pilot described above. It is not a researched market average or a complete quote for every location.
| Item to price | Example allowance |
|---|---|
| Payroll fundamentals course and certification exam allowance | $400.00 |
| Errors and omissions plus cyber insurance allowance | $600.00 |
| Password manager and secure document portal, three months | $90.00 |
| Payroll tax reference guide and deadline calendar subscription | $120.00 |
| Simple website and service agreement page | $150.00 |
| Attorney review of a client service agreement | $350.00 |
| Example total | $1,710.00 |
What this assumes—and excludes
Assumes you already understand payroll basics, own a secure computer, and can use the payroll platform's partner program at little or no cost. Excludes office rent, owner pay, per-employee platform fees billed to clients, and local licenses. Get insurance and legal quotes for your state before you sign clients.
Collect actual supplier, insurance and local-authority information. Add a reserve for delays and unexpected costs; the example total is not a funding recommendation.
How the unit economics work
At an assumed $180.00 per monthly client and $12.00 in direct costs, contribution is $168.00 before monthly fixed costs, owner pay and taxes. With 2.5 all-in working hours per unit, that is $67.20 per delivery hour before those deductions. These inputs illustrate the arithmetic; they do not establish a market price or expected earnings.
The example also allows $150.00 in monthly fixed costs. Include unpaid acquisition and administrative time when deciding whether the offer is worthwhile.
Try your own numbers
These are editable planning assumptions, not prices we have verified. Calculations stay in your browser.
Operating result = (price − direct cost) × units − monthly fixed costs. Before owner pay, taxes, financing and startup recovery. At these inputs, delivery requires 25 hours per month, plus any work not included in your per-unit estimate. Sales volume is a scenario, not a forecast.
How to find the first customers
Test a small offer before scaling traffic. Record the source of each enquiry, whether it fits the offer, and whether the buyer pays.
- Introduce yourself to two or three local bookkeepers and CPAs who do not want to run payroll. Offer to take payroll while they keep the books, with a clear handoff of reports each month.
- Ask small business owners in a local trade association or chamber group about their payroll pain points. Offer a free review of last quarter's payroll reports to show what you check.
- Approach accounting firms during the slow summer months, when they have time to discuss referral arrangements before year-end.
- Track each client's source and how many cycles run without corrections. Share that record, not invented results, when asking for referrals.
What to validate before spending more
- Run three practice payrolls in the platform's demo environment, including a new hire, a final paycheck and a bonus, and time each one.
- Read IRS guidance on reporting agent authorizations before you agree to file tax forms on a client's behalf, and decide which filings you will handle.
- Ask your state labor department about final paycheck timing and pay frequency rules, and note them in your checklist for each client.
- Confirm with an insurance agent which payroll errors your E&O policy covers and whether cyber coverage includes breaches of employee data.
The operational catch
The pressure point is the approval deadline. Direct deposit needs approval days before payday, and owners often send hours late or forget a pay change. Set a firm cutoff in your agreement, send a reminder the day before, and write down what happens if the owner misses it. Never fund payroll yourself to cover a late client.
A practical way to fund the first step
Start by taking payroll from one or two existing bookkeeping or business contacts so you earn while learning the platform. Keep tools on monthly plans and avoid any setup that requires you to hold client money, which can trigger licensing questions.
Separate cash already available from money still to earn. Count only proceeds after direct expenses, and do not spend customer funds needed to fulfill their existing orders.
Questions before you start
Do I need to be a CPA to run payroll for others?
Generally no, but you should avoid tax advice and check whether your state has any registration rules. Many payroll providers are not accountants; they rely on software and a careful process.
Who is responsible if a tax deposit is late?
The employer remains legally responsible for employment taxes even when it uses a provider. Your agreement should say who schedules deposits, and you should confirm each one in the platform after every cycle.
How do I handle tips or commissions?
Tips and commissions add reporting complexity. Exclude them at first or charge more once you understand how your platform handles them, and confirm treatment with the client's accountant.
Source-backed checks
These references support the specific checks below. They do not endorse this business idea or substantiate the example prices, costs or demand.
The IRS explains how businesses apply for an employer identification number, which employers use for tax filings. Internal Revenue Service: Get an employer identification number.
The IRS describes how to determine whether a worker is an independent contractor or an employee. Internal Revenue Service: Independent contractor (self-employed) or employee?.
SBA advises small businesses to strengthen cybersecurity and protect sensitive business and customer data. U.S. Small Business Administration: Strengthen your cybersecurity.
- Get an employer identification numberInternal Revenue Service · Reference checked September 8, 2026
- Independent contractor (self-employed) or employee?Internal Revenue Service · Reference checked September 8, 2026
- Strengthen your cybersecurityU.S. Small Business Administration · Reference checked September 8, 2026
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