Case Study: Excessive Payroll Administrative Fees for Custom Manufacturer

Prior Payroll Company Leasing Company
Number of Employees 19
Payroll Frequency Weekly
Cost per Year $15,600
Number of Employee States 1
BMA Small Business Payroll Fee $3,000
Client’s Total Savings with BMA $12,600
Savings Percentage 80%

CLIENT PROBLEM—Excessive Payroll Administrative Fees:

This manufacturing client formerly used an employee leasing company that charged substantial administrative fees for payroll processing. Although the client saved money on workers’ compensation rates by partnering with a leasing company (i.e., the initial rates were quite low and increased gradually over time), the administrative costs far outweighed (and eliminated) the savings.


Beyond significantly reducing the client’s payroll fees, we reduced the client’s workers’ comp expenses by eliminating the admin fee charged by the leasing company and put them on our “pay as you go” workers’ compensation program. As workers’ comp fees are mandated by each state, BMA ensured the client could start taking advantage of the related (and significant) savings and additional security. The firm’s net profits and cash flow noticeably increased. With these savings in hand, our client then purchased commercial equipment he could not previously afford.