The question was the customer pays a QB Payroll monthly usage fee and an Annual Fee, why? You answered regarding the monthly fee however, not the annual fee.  Its my understanding the monthly fee is what we are charged per employee for payroll.  And the Annual fee is what we pay to process our payroll taxes or have questions regarding payroll I believe.  Correct me if I'm wrong.  I feel the annual fee is way to much! Our organization is in search of another program.  We have been using QB for decades.  However, there annual is almost $500, ridiculous!