ADP Annual Cost
$8,720
Actual spend, based on 5 employees
Payroll Advisory Analysis
O&R Management Payroll Cost Analysis
A straight-line breakdown of what Go Ride has been paying, what it could be paying, and exactly what changes when you make the switch.
Projected Savings Captured
•
$3,957 annually
•
$79 weekly per payroll run
Paychex Annual Cost
$4,763
Quoted annual total
Annual Savings
$3,957
Projected cost reduction
Weekly Savings
$79
Per payroll run
Overview
Executive Summary
Based on O&R Management's prior year payroll spend at 5 employees, ADP cost approximately $8,720 annually. Go Ride currently operates with 3 employees on payroll. The proposed Paychex quote at that current headcount projects a total annual cost of $4,763.11, an estimated savings of $3,956.89.
Critically, even if Go Ride adds back the two employees and returns to a full team of 5, Paychex scales to only ~$5,136/year. That is still $3,584 less than what ADP cost at that same headcount. The savings hold at every level.
ADP was overbuilt and overpriced for this operation from the start. Paychex aligns cost to actual scale while preserving every function Go Ride actually uses.
Visualization
Annual Cost Comparison
ADP Cost$8,720.00
Paychex Cost$4,763.11
Savings$3,956.89
The savings profile is immediate and meaningful, positioning Paychex as the more cost efficient payroll solution for O&R Management.
Breakdown
Cost Analysis
Actual ADP spend vs quoted Paychex pricing
| Category | ADP | Paychex |
|---|---|---|
| Annual Cost | $8,720 | $4,763 |
| Monthly Average | $726.67 | $396.93 |
| Weekly Run Cost | $167.69 | $88.50 |
| Cost Per Employee / Run (3 staff) | $55.90 per person | $29.50 per person |
| Setup Fees | Not applicable | $1,100 Waived |
| Paychex Fee Structure | Not applicable | $88.50 × 52 runs = $4,602 + $161.50 annual fees = $4,763.11 |
| Estimated Annual Savings | Current Baseline | $3,957 |
The Real Problem
ADP Monthly Volatility vs Paychex Predictability
ADP billing is unpredictable month to month. Your spend swings from lows around $584 up to a $968 spike in January, driven by employee count changes, W-2 processing, compliance triggers, and seasonal scaling. Paychex is a flat $88.50 per run, every single time. No surprises.
Paychex $396/mo
$968 ⚠
ADP actual monthly billing
Paychex flat equivalent
Jan Spike
$968
W-2s, compliance, year-end triggers
Low Month
$584
Best case, still above Paychex
Paychex Every Month
$396.50
Flat, predictable, no surprises
Even in O&R Management's cheapest month with ADP, the bill is still $584. Paychex caps every single month at $396.50. There is no scenario where ADP wins on cost.
Growth-Proof Savings
What If Go Ride Scales Back to 5?
The ADP figure of $8,720 reflects actual spend when Go Ride had 5 employees on payroll. Right now the team is at 3. But the question that matters is this: if you hire back those two drivers and return to full headcount, does Paychex still win? The answer is yes, by a wide margin.
Current Scenario, 3 Employees
ADP (actual)
$8,720 / yr
Paychex (quoted)
$4,763 / yr
Weekly: ADP vs Paychex
$167.69 vs $88.50
Annual Savings
$3,957
If Back at 5 Employees
ADP (was actual)
$8,720 / yr
Paychex at 5 staff
~$5,136 / yr
Weekly: ADP vs Paychex
$167.69 vs $95.31
Annual Savings
$3,584
How the 5-employee Paychex figure is calculated
Per Check: $2.77 × 5 = $13.85 • Per Payrun: $70.43 • Flex Time Payrun: $7.88 • Per Employee: $0.63 × 5 = $3.15
= $95.31/week × 52 = $4,956 + Annual fees ($102.50 + $45 + $32) = $179.50
= $5,135.50 total
Paychex scales cleanly with headcount. Whether Go Ride runs 3 or 5 employees, the savings against ADP remain substantial. There is no headcount scenario where staying on ADP makes financial sense.
Service View
Paychex Advantage
Unlimited payroll and Taxpay
Dedicated payroll specialist
Time & Attendance, mobile and desktop
HR Library, tool based HR similar to ADP
Lower weekly processing cost with comparable core features
$1,100 in Setup Fees Waived
Paychex Flex® Enterprise Setup ($500) and Paychex Flex Time Setup ($600) both fully waived, zero out-of-pocket to get started.
Service View
ADP Reality
Higher annual spend based on historical billing
Bundled features not fully utilized
Less cost efficient at current scale
Higher overhead without proportional operational gain
Oversold from Day One
The ADP sales representative positioned an enterprise-tier platform to a small transportation operation. Go Ride never needed that infrastructure. The premium was baked in from the first invoice and has been quietly draining margin ever since.
ADP was never the right fit for O&R Management. The platform is built for larger, more complex organizations, and O&R has been absorbing that cost gap from the start.
Closing Insight
Conclusion
Paychex presents a materially lower cost structure while covering every core payroll administration need O&R Management actually uses. The proposed model is more financially efficient and more operationally aligned than ADP ever was at this scale.
ADP was designed for larger, more complex organizations. O&R Management has been paying for infrastructure it does not need and features it does not use. That mismatch has had a real cost.
The difference is not marginal, it is meaningful. Paychex lowers recurring overhead while preserving operational capability, which directly improves margin, cash retention, and overall financial flexibility.
Recommended Action
Recommendation
Based on the financial and operational analysis, transitioning to Paychex represents a clear opportunity to improve cost efficiency while maintaining core payroll functionality.
The projected annual savings of nearly $4,000 provides immediate financial impact and strengthens overall operating margins.
Given the historical cost burden and lack of disruption value, continuing with the current ADP structure no longer aligns with O&R Management's financial optimization strategy.
Financial Impact
Impact Reallocation
Marketing Budget
3 to 6 Months
Lead generation and growth
Driver Payroll Buffer
2 to 4 Weeks
Operational stability
Debt Reduction
Immediate Impact
Interest savings leverage
Cash Reserves
Stronger Position
Liquidity and flexibility
The projected $3,957 annual savings is not just cost reduction, it is deployable capital that can be redirected into growth, stability, and financial optimization immediately.
Opportunity Cost
Cost of Staying
Continuing with the current ADP structure results in an estimated $3,957 in avoidable annual expense.
Over a 3 year period, this compounds to $11,871 in lost capital, excluding any additional fee increases or usage based costs.
This is not just a cost difference, it is capital that is no longer being deployed into growth, operations, or financial strengthening.
Payback
Break-Even Timeline
Paychex waived $1,100 in setup fees outright. That includes the Paychex Flex® Enterprise Setup at $500 and the Paychex Flex Time Setup at $600. That is not a discount, that is money that never leaves the business.
Combined with a cost difference of approximately $79 per week, the financial benefit starts immediately from the first payroll cycle.
There is effectively no break-even delay and no transition cost. The business begins retaining capital from day one.
Transparency Note
Paychex may add delivery fees, year-end mailing, and usage-based items like I-9 processing over time. Even accounting for typical fee creep, the realistic ceiling lands around $5,200 to $5,500 annually. That is still a $3,200+ improvement over current ADP spend.
After You Authorize
What Happens Next
Once you submit your authorization, the transition is handled. Here is exactly what the process looks like.
01
Dabella Contacts Paychex
Within 24 to 48 hours of your authorization, Dabella Consulting initiates the Paychex onboarding request on your behalf using the quoted terms.
02
You Review and Sign
Paychex sends the service agreement directly to you for review. You sign only when you are satisfied with the terms, nothing gets locked in without your direct approval.
03
Paychex Onboards, Savings Begin
Your dedicated Paychex specialist handles data migration and setup. From the first payroll run, Go Ride is saving $79 per week compared to ADP.
55% Discount, Time-Sensitive
The Paychex quote includes a negotiated 55% discount on all per-run and per-employee fees. This is a quoted rate, not a published one, and it is tied to this proposal. Locking it in now protects the savings figure. Waiting introduces pricing risk.
Decision
Recommended Next Step
Review the approval action below to authorize Dabella Consulting to move forward with the Paychex onboarding request on your behalf.
Authorization Confirmed
Thank you. Your authorization request has been submitted successfully. Someone will reach out to you within the next 24 to 48 hours.