How to Price Your Payroll Product & Use Discounts Effectively
Integrated payroll pricing guidance to maximize value, margins, and strategic discounting.
How to Price Your Payroll Product & Use Discounts Effectively
How to Think About Payroll Pricing
For many employers, payroll is viewed as a commodity, a required back-office function they assume should “just work.” This creates an initial expectation that payroll should be inexpensive and interchangeable across providers.
However, as a Check partner, your product is not a commodity experience. When you add payroll to your suite of products, you’re:
- Integrating systems that were previously disconnected
- Eliminating double data entry and reducing errors
- Consolidating the employer’s operational workflows
- Saving the employer meaningful time and administrative overhead
Because of this integration advantage, you create operational efficiency that legacy payroll providers cannot match. That added value means you can confidently price above commodity expectations, as long as your sales and marketing teams articulate the value clearly.
Check’s Recommended Pricing Strategy
Check recommends that partners use the following pricing as a starting point:
Minimum Price
- $40 base fee per month
- $6 per employee per month (PEPM)
This ensures your margins remain healthy while staying competitive with the broader market.
Move Up the Value Chain (Ideal Pricing)
Partners are encouraged to position their product at:
- $50 base fee per month
- $8–$10 PEPM
This price point better reflects the value created when payroll is integrated with your broader product ecosystem. Many employers will comfortably pay this premium if your sales team effectively communicates the time-savings, reduced errors, and consolidated operations that come from using your all-in-one system.
Premium Pricing Is Possible With the Right Pitch
If your team presents payroll as part of a unified workflow, not a standalone commodity, you can confidently charge at the higher end of the range. Later in the GTM playbook, we’ll outline the specific sales pitch that helps partners achieve this.
Pricing Sensitivity by Employer Size
Understanding employer psychology by size helps sales teams tailor their approach:
Small Businesses (2–50 employees)
- More price sensitive
- Often compare payroll providers by monthly fee alone
- More likely to choose lower-priced options if value is not clearly explained
- Need a clear explanation of how an integrated system reduces admin work and saves time
Mid-Size and Larger Employers (50+ employees)
- Far less price sensitive
- Prioritize operational efficiency and reliability over raw cost
- Will pay more for a system that reduces manual work, consolidates tools, and lowers risk
- Strong candidates for $50 base + $8–$10 PEPM and for premium add-ons
Your pricing confidence increases significantly as customer size increases.
Pricing Strategy for Alpha Customers
For alpha customers, your earliest adopters, Check recommends an aggressive incentive:
Alpha Customer Incentive
- 3–6 months of free payroll
These early customers help you:
- Validate your product
- Pressure test onboarding
- Provide testimonials and case studies
- Give feedback before a larger GTM launch
The value of alpha learnings far outweighs the short-term revenue from these initial customers.
Discount Strategy (Recommended Approach)
Discounts should be used strategically, not as your default. Payroll discounts are common across the industry, and the most effective structure is:
Industry-Standard Discount (Recommended)
- 3 months free
- Applied to months 2, 3, and 4
Why not month 1?
You want the employer to pay for month 1 to confirm they are a serious buyer, committed to adopting the product. Offering months 2–4 for free reduces risk for them without giving away the entire onboarding period.
This mirrors how legacy providers structure their promotions while maintaining buyer commitment.
Why Legacy Providers Don’t Publish Pricing
You’ll notice that several major payroll providers, ADP, Paychex, and other legacy players, do not publicly list pricing. This is intentional.
Legacy payroll companies:
- Frequently discount up to 45%
- Use payroll as a loss leader to upsell HR, insurance, retirement, and other services
- Incentivize their sales teams to close deals quickly using deep, variable discounts
- Design pricing intentionally to obscure comparisons
For reference, here are public pricing pages from non-legacy providers:
- Roll by ADP: https://www.rollbyadp.com/pricing
- QuickBooks Payroll: https://quickbooks.intuit.com/payroll/pricing/
- Square Payroll: https://squareup.com/us/en/payroll/pricing
These pages give you a sense of the “visible” market rate employers may compare against—and show that your recommended $50 + $8–$10 PEPM pricing fits comfortably within the competitive landscape.
Summary: What You Should Do
- Treat payroll as a value-added integrated workflow, not a commodity.
- Start no lower than $40 base + $6 PEPM.
- Aim to move up to $50 base + $8–$10 PEPM whenever possible.
- Expect small businesses to be more price-sensitive; mid-size and larger companies are not.
- Offer 3–6 months free for alpha customers.
- Use the 3 months free (months 2–4) discount structure for general sales.
- Understand legacy providers discount aggressively and use payroll as a loss leader, your integrated value lets you avoid racing to the bottom.
Last updated on December 16, 2025