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    What is the cost of developing a payroll app like Hourly?

    • January 25, 2024
    • 5 min

    Payroll administration using paper is outdated in this digital world even for small businesses with a small workforce. Thus, a simple database tool is used in most office suites as an affordable option. However, there are some limitations to it. The main limitation is automation.

    Thus, payroll procedures are streamlined by developing a personalized automated employee payroll app, which lessens the administrative load on businesses. This guide will help business owners or non-tech founders who want to launch a payroll app like Hourly as a product or integrate a customized payroll app into their company.

    Advantages of a payroll app like Hourly

    For the success and growth of a business, the contribution of a payroll app should be considered. It helps in increasing employee satisfaction which leads to productivity. Let’s know the advantages of a payroll app like Hourly.

    • Automated payroll apps greatly minimize the amount of time spent performing manual calculations and data entry.
    • A streamlined and effective payroll system guarantees that staff members are paid properly and on time, which is a critical component of job satisfaction. Payments made on time and without error have a substantial impact on staff happiness, lowering the chance of personnel seeking new employment owing to payment concerns.
    • An effective payroll system assists firms in complying with tax requirements, lowering the risk of fines related to underpaid or late payment of taxes.
    • Payroll requirements may vary as a firm grows. Thus, payroll app like Hourly are generally scalable, adjusting to the changing demands of the firm.

    Features to include in a payroll app like Hourly

    Creating a payroll app like Hourly requires careful consideration of the features that will streamline payroll management for businesses and provide a seamless experience for both employers and employees. Here are essential features to include in a payroll app:

    • User Authentication and Authorization: Integrate secure login for employers and employees with multi-factor authentication. Role-based access control to ensure data privacy.
    • Employee Profile Management: Another feature to add is employee onboarding and profile creation. It should have personal details, tax information, and direct deposit setup.
    • Time Tracking: Integration with time tracking tools or a built-in time tracking feature. Hourly, daily, or project-based time entry should be allowed for accurate pay calculations.
    • Payroll Calculation and Processing: Furthermore, automated payroll calculations based on hours worked and applicable rates should be added. Support for various pay frequencies (weekly, bi-weekly, monthly) and overtime and bonus calculations. It should also have a preview of payroll before processing and approval workflows for payroll managers.
    • Tax Calculation and Deductions: Include automated tax calculations based on employee location and relevant tax laws and deductions based on leaves.
    • Leave and Time-Off Tracking: Integrate leave accrual and tracking features. Also, add request and approval workflows for time off.

    Cost of developing a payroll app for business

    The development of any web or mobile app involves a systematic approach. Furthermore, the cost of designing a payroll app for a company can vary greatly depending on a number of criteria. It includes features, complexity, platform compatibility, and the location of the developer team.

    • Basic payroll functions, such as salary computation, tax calculation, and direct deposit, will be less expensive than a full system with sophisticated features like employee self-service, benefits administration, and compliance reporting.
    • Developing an app for a single platform (iOS or Android) is generally more cost-effective than creating a cross-platform app or a combination of web and mobile applications.
    • The complexity and sophistication of the UI/UX design can affect the development cost. Simple and intuitive designs may be more cost-effective than highly customized and intricate designs.
    • If you plan to integrate the payroll app with existing HR systems, accounting software, or other third-party tools, the complexity of integration can impact development costs.
    • The more comprehensive the testing process, the higher the development cost. This includes functional testing, security testing, and performance testing.
    • The geographical location of the development team plays a significant role in determining costs. Thus, development rates vary across regions, with teams in certain countries generally offering lower hourly rates than those in more expensive markets. Development of a payroll app like Hourly by an expert app developer will cost $50 to $99 hourly.
    • Consideration should be given to ongoing maintenance and support costs, which include updates, bug fixes, and support services.


    Finally, creating a payroll app like Hourly necessitates careful consideration of a variety of aspects that influence expenses. It is critical to specify the precise features and functionalities necessary, select an appropriate platform, and work with a development team that specializes in payroll solutions. While the costs may vary, investing in a well-designed, secure, and feature-rich app may give long-term benefits to organizations in terms of effectively handling payroll operations.


    What app to use for payroll?
    You can develop a custom app or use Hourly for payroll.
    How long does it take to develop a payroll app like Hourly?
    The development timeline can vary based on the app’s complexity, features, and other requirements. A basic app may take a few months, while a more advanced one may take six months or longer.
    What are some key features to include in a payroll app?
    Key features may include time tracking, tax calculations, direct deposit, benefits management, employee self-service, and compliance reporting.
    Can the payroll app integrate with existing systems?
    Yes, many payroll apps are designed to integrate with existing HR, accounting, and other systems to streamline processes.
    How do security and compliance impact development costs?
    Implementing robust security measures and ensuring compliance with legal regulations will require additional development effort, impacting overall cost.

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