Payroll Tier 2 Service Included in Gold Program

What Is Tier 2 Payroll?

Tier 2 is designed for small teams with light to moderate payroll complexity. It supports up to 3 employees with salary payroll only, and includes basic time tracking via QuickBooks Time for job cost tracking. Hourly payroll processing is not included — it is available as an add-on ($75/mo) or is standard in Tier 3.

Tier 2 — Gold Premium Payroll | QuickBooks Payroll Premium | Up to 3 employees | Salary only

$325 / month  (or included in Gold Subscription)

One-Time Setup Fee: $550  |  Client-Run Oversight Alternative: $245/mo

SOFTWARE INCLUDED

QuickBooks Online Payroll Premium (including QuickBooks Time Basic) is paid by ABBL and included in your service fee. Clients do not purchase payroll software separately.

What's Included & What's Not

✓  INCLUDED	✗  NOT INCLUDED
Payroll processing — up to 3 employees	Hourly payroll processing — add-on ($75/mo) or Tier 3
Salary payroll only	Benefits plan setup or administration (add-on)
Direct deposit (ACH)	Benefits or garnishment deductions (add-on)
PTO and sick-time tracking in payroll system	Bonus or commission payrolls (add-on)
Federal & 1-state payroll tax payments & filings	Multi-state payroll (add-on: $75/mo/state)
Quarterly filings (Form 941)	Payroll accruals on balance sheet (accounting add-on)
Annual filings (Form 940, W-2, W-3)	HR advisory or employee relations
Payroll journal entries in bookkeeping	Open enrollment support
Basic payroll management reports	Carrier or broker communication
Secure storage of filings in client portal	ACA, ERISA, COBRA filings
Client Payroll Manual & Status Change Form
QB Payroll Premium + QB Time Basic (paid by ABBL)
QB Workforce self-service portal
QB Premium HR self-service tools & resources

Who Does What — Ongoing Payroll

CLIENT DOES	ABBL DOES
Read & follow the Client Payroll Manual	Set up automatic salary payroll runs
Fill out a Payroll Status Change Form for any and all payroll changes	Receive & process Payroll Status Change Forms
Notify ABBL at least 2 weeks before any changes take effect	Send e-signature onboarding packet to new employees (W-4, I-9, direct deposit, Workforce)
Approve payroll before each run (hourly payrolls: 2 days minimum)	File payroll taxes automatically (federal + 1 state)
Create and maintain employee handbook & company policies	File quarterly & annual payroll tax returns
Write and deliver offer letters, promotion, demotion & termination notices to employees	Email W-2s to employees by January 31 each year
Handle all discipline communications with staff	Upload W-2s and tax filings to client portal
Maintain job descriptions with duties, access requirements, and pay details	Onboard employees to QB Workforce
Forward all government tax notices to ABBL via HubDoc the same day received	Invite employees to QB Time for time tracking
Contact and manage own HR resource provider when HR support is needed	Process terminations from payroll with signed Status Change Form
Train employees on time tracking and expense reporting systems
Manage employee time approval before payroll submission

One-Time Setup Fee — Tier 2  |  $550

Tier 2 — Initial Payroll Setup

One-Time Fee: $550 — required before first payroll run

Applies to new ABBL-managed payroll only

Setup Includes (All Tier 1 items, plus)

•      QuickBooks Payroll Premium account purchase & initial configuration

•      Setup questionnaire for all employees (W-4, I-9, 2 forms of ID, direct deposit, Workforce invite)

•      Federal employer account configuration

•      State payroll tax account setup — 1 state included

•      Authorization forms for e-filing / e-pay

•      2-hour Zoom meetings total — owner bank verification & e-sign (owner required, not delegatable)

•      Bank account confirmation and micro-deposit verification

•      Employee profile setup — up to 3 employees

•      Direct deposit configuration (up to 2 accounts per employee)

•      Payroll item mapping to chart of accounts

•      Liability tracking, tax settings, and rates verification

•      PTO and sick-time policy configuration in payroll system

•      QuickBooks Time Basic integration setup

•      Salary payroll schedule configuration

•      Employee tax and withholding verification for all employees

•      Initial payroll test review

•      Portal folder setup for payroll tax forms

•      Client Payroll Manual & Payroll Status Change Form provided

•      Review of prior payroll data if converting mid-year

MULTI-STATE NOTE

1 state included. Additional state setup: $200/state (includes CorpNet registration assistance).

Setup Notes

•      Applies to first-time setup only

•      Benefits deductions setup not included in setup fee — available as add-on ($150/plan)

•      Additional employees at setup beyond 3 may increase fee ($75/employee)

Payroll Add-On Services

Add-On Service	Description	Monthly	One-Time	Applies To
Off-cycle / bonus payroll run	Missed deadline or extra run	—	$50 / run	All tiers
New hire processing	Payroll setup + new hire reporting	—	$50 / event	All tiers
Termination processing	Final paycheck + PTO payout calc.	—	$50 / event	All tiers
Pay rate / status change	Promotion, demotion, FT/PT change	—	$50 / event	All tiers
Benefits deduction setup	Per plan (medical, dental, 401k, etc.)	—	$150 / plan	All tiers
Benefits deduction tracking	Ongoing payroll deduction entry	$50 / benefit	—	All tiers
Garnishment handling	Setup + ongoing tracking	$25 / garnish.	—	Tier 2 & 3
Hourly payroll processing	Time entry + approval workflow	$75 / mo.	—	Tier 2 only
Multi-state payroll	Additional state filings	$75 / state	—	Tier 2 & 3
Job costing payroll mapping	Classes / jobs mapping	$100 / mo.	—	Tier 3
Advanced time tracking setup	Rules + sync beyond standard	$75 / mo.	$150 setup	Tier 2 & 3
Payroll advisory & comp planning	Comp reviews + planning	$100 / mo.	$150 / hr	Tier 3
Additional state — setup	Registration + configuration	—	$200 / state	All tiers
Additional employee at setup	Beyond included count	—	$75 / employee	All tiers
Mid-year payroll migration	Historical cleanup + import	—	Custom quote	All tiers

Scope & Compliance Boundaries

PAYROLL ≠ HR OR BENEFITS

Payroll services cover calculation, processing, filing, and payroll-related accounting only. Benefits administration, HR compliance, open enrollment, carrier communications, and ACA/ERISA/COBRA filings are NOT included and remain the client's responsibility.

SCOPE CHANGES

Changes to employee count, payroll type, benefits deductions, additional states, payroll accruals, or time-tracking complexity may require add-on services or a tier upgrade. ABBL will always communicate options clearly before changes are made.

Alternative: Client-Run Payroll — 2–3 Employees

If you already use a third-party payroll provider (Gusto, ADP, Paychex, OnPay, Rippling, etc.), ABBL provides Payroll Accounting & Reconciliation services only — not payroll processing.

Client-Run Payroll Oversight — 2–3 Employees

$245 / month starting price

+ $50–$100 / month complexity adjustments if applicable

What ABBL Provides (Accounting Only)

•      Payroll journal entry posting or import into QuickBooks

•      Payroll liability tracking and clearing

•      Review of quarterly and annual payroll tax filings

•      Storage of payroll returns in the client portal

•      Payroll for 1 state (additional states: $75/mo per state)

•      Coordination when discrepancies are identified

What ABBL Does NOT Provide (Client-Run)

•      Payroll processing, calculations, or tax submissions — handled by your provider

•      Payroll software — client pays their own provider directly

•      Benefits administration, carrier communication, or HR support

WHY THIS IS NEVER FREE

Payroll adds complexity to your accounting regardless of who processes it. This is why client-run oversight starts at $245/mo. In many cases ABBL-managed payroll is the more streamlined and cost-effective option.

Employee Scaling Fees

Tier	Employee Count	Price / Employee / Mo.	Notes
Tier 1	Not allowed	N/A	Owner only — no additional employees
Tier 2	4th employee	$30 / mo.	Approval required; may require upgrade to Tier 3
Tier 3	5–10 employees	$35 / mo.	CA compliance threshold at 5+
Tier 3	11–15 employees	$40 / mo.
Tier 3	16–20 employees	$45 / mo.
Tier 3	21+ employees	Custom quote	Requires custom payroll proposal

California Compliance Thresholds — Know Before You Grow

Employees	New Compliance Obligations Triggered
1+	Minimum wage ($16.90/hr in 2026)  •  Payroll tax registration  •  Workers' comp insurance required
5+	Fair Employment & Housing Act (FEHA)  •  Mandatory harassment training  •  CalSavers retirement mandate
15+	ADA compliance  •  Expanded employment discrimination protections
50+	Federal FMLA  •  ACA employer mandate reporting  •  Enhanced harassment training

NEED A COMPLIANCE REVIEW?

As your employee count approaches a threshold, ask ABBL about the optional California Headcount Compliance Review ($650 flat fee). This educational review identifies newly applicable obligations — it is not legal advice.

Payroll services provided by A Bigger Bottom Line include payroll software, processing, and payroll tax compliance at the selected tier. Payroll software is paid by ABBL — clients do not purchase or manage it separately when enrolled in ABBL-managed payroll.