Official rates checked October 24, 2026 · USD

QuickBooks payroll pricing: the first-year bill

For five billable employees, Workforce Payroll + Simple Start has an illustrated first-year subscription subtotal of $1,314 with the advertised introductory offer. The calculation is ($44 + $6.50 × 5) × 3 + ($88 + $6.50 × 5) × 9 = $229.50 + $1,084.50 = $1,314. This is a payroll-and-accounting bundle, not a payroll-only Core price, a customer invoice or a complete employer budget.

QuickBooks official payroll pricing and offer details · checked October 24, 2026 lists the bundle at $88/month plus $6.50/employee/month, with a $44 monthly base for the introductory three months. This worked example assumes eligibility for that offer, monthly billing, unchanged rates, five active billable employees throughout, and twelve consecutive months of service. Confirm the offer in your checkout or written quote.

Separate the offer from the ongoing bill

The advertised base discount does not halve the employee charge. For this example the ongoing monthly bill is $44 higher than the introductory bill: $120.50 − $76.50 = $44. Dividing the first-year subtotal by twelve gives $109.50/month on average; that average is neither the initial monthly charge nor the ongoing charge.

Download the calculations and fill-in confirmation checklist (CSV)

The annualization mistake to avoid

Taking the introductory monthly charge and multiplying it by twelve produces $76.50 × 12 = $918. It understates this scenario by $1,314 − $918 = $396, because the $44 base reduction lasts for three months rather than twelve. The missing amount can also be reconstructed as nine later months × $44 = $396.

Conversely, twelve regular-price months cost $120.50 × 12 = $1,446. The first-year offer reduces that figure by only $44 × 3 = $132, so $1,446 − $132 = $1,314. These two checks reconcile the same annual subtotal from opposite directions. They are calculations from the dated rates above, not additional vendor charges.

Use your billable headcount, not just people paid this month

QuickBooks official guide to per-employee billing · checked October 24, 2026 explains that active employees are counted during the billing period even when they receive no pay. Before using a headcount, reconcile the active employee list with the invoice. The five-person example is an illustrative assumption; it is not evidence that your own invoice will count five.

For a constant billable headcount N, first year = 3 × (44 + 6.50N) + 9 × (88 + 6.50N) = 924 + 78N. A regular-price year at unchanged rates = 12 × (88 + 6.50N) = 1,056 + 78N. Every extra employee billed for all twelve months adds $6.50 × 12 = $78 to either scenario.

If headcount changes, replace the constant N with the actual billable count in each month. For example, five billable employees for the first six months and six for the following six adds six × $6.50 = $39 to the constant-five-person example, giving $1,314 + $39 = $1,353. This assumes the same base offer and prices, with the extra employee billable for each of those six full billing periods. Check partial periods against your actual invoice.

Keep subscription cash, internal work and unknown charges separate

The $1,314 is a subscription subtotal. Add verified implementation charges, separately billed annual fees, optional modules and applicable sales tax only when the quote supplies them. If an item is included, record Included; do not add the same cost again. A missing fee is Pending confirmation, not zero.

Internal transition work belongs on a separate line: documented transition hours × your own hourly cost. We have not invented either input. Use the payroll cost calculator to carry your quoted fees into a cash subtotal, internal cost and full total when the necessary inputs are known. Wages and employer payroll taxes remain outside this software subscription example.

QuickBooks official explanation of subscription charges · checked October 24, 2026 identifies expired promotions, employee fees and sales tax among reasons an invoice can differ from an expected base price. Reconcile those items before treating a mismatch as an arithmetic error.

Items to confirm before signing

1. Product identity: Is the quote Workforce Payroll + Simple Start, a different accounting bundle, or payroll alone? Record the exact name.
2. Offer: Are you eligible for the introductory base price? Record its billing dates and the regular base after it expires.
3. Employee billing: Which employees count as active, what rate applies, and how are changes during a billing period handled?
4. Implementation: Is setup, data migration or year-to-date import included, separately charged, or still unquoted?
5. Annual and optional fees: Which filing services, modules and other charges are included? Obtain a written amount for every separately billed item.
6. Tax and renewal: Does sales tax apply to your account, and are there any contracted rate changes after the illustrated period?
7. Internal work: Who will handle the transition, and what hours and costing rate will you document separately?

The CSV includes empty response fields for these questions. Open it in a spreadsheet, enter the provider's written answers and retain the generation/check date with your quote. Unanswered rows stay pending.

Questions the headline price does not answer

Is $44 the whole monthly bill?

No. In this offer it is the introductory base. At five billable employees, the illustrated introductory month is $44 + $32.50 = $76.50, before unconfirmed or separately applicable charges.

Does $1,314 mean the second year costs the same?

No. Twelve months at the current regular rates and five employees produce $1,446. That is an unchanged-rate scenario, not a renewal guarantee; confirm future pricing in writing.

Can I use this number to compare providers?

Only after matching scope, headcount and the billing period. This bundle includes accounting, so comparing its subtotal with a payroll-only quote without adjusting scope is misleading. The Gusto vs QuickBooks cost worksheet helps separate components; this page works through the time-limited bundle bill rather than ranking providers.

Method: arithmetic from the three dated official sources linked above. Headcounts and staffing changes are illustrative inputs. No affiliate links, recommendations or unverified setup prices are used.