Ask each quotation to distinguish the base fee, included headcount and charges that apply when the workforce grows. Comparing those three components is more useful than comparing an isolated per-employee figure.
What information affects a quotation?
Prepare a summary of pay frequency, fixed and variable compensation, employee changes, payroll exceptions and reporting requirements. Include applicable employment regimes and the tasks you want to delegate.
Multiple locations may matter if they submit different inputs or need separate reports. Mid-month payments may introduce additional work even with a small workforce. Describe your actual process instead of relying on a label such as “small business”.
Lynch Payroll's minimum fee
The minimum fee is US$100 plus IGV per month for up to five employees. IGV is Peru's value-added tax. The same minimum applies when the company has fewer than five employees.
It includes only:
- Payroll calculations.
- An initial review of existing employment contracts and recommendations.
- A checklist of formal obligations the company should have in place.
Payroll calculations are the monthly component. The contract review is an initial activity, not ongoing legal advice. Additional filings, procedures or services must be expressly defined in the agreed scope.
More than five employees: a tailored base proposal
The proposal specifies the monthly fee, included employees and contracted tasks. There is no universal rule that multiplies the entire workforce by a single employee rate.
Growth beyond the included headcount follows these cumulative tiers:
| Additional employees | Monthly fee per additional employee |
|---|---|
| First 50 | US$8 plus IGV |
| Next 100 | US$5 plus IGV |
| Additional employee 151 onward | US$3 plus IGV |
Only employees above the agreed base headcount enter these tiers.
Illustrative example: a proposal includes 60 employees and the company grows to 120. There are 60 additional employees. The monthly increase is 50 × US$8 plus 10 × US$5, or US$450 plus IGV, added to the agreed base fee. This example does not price the base proposal or suggest that its first 60 employees cost US$100.
All prices are exclusive of IGV, and invoicing is in US dollars.
Compare equivalent work
Confirm whether competing quotations cover the same outputs, frequencies, adjustments and reports. Ask how headcount reductions, scope changes and extra runs will be handled. Those terms need agreement; they cannot be inferred from the growth tiers.
Compare the payroll function and the coordination that will remain within your company. Outsourcing payroll complements HR and does not replace all HR responsibilities. The guide to selecting a payroll provider helps you assess those boundaries.
