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Business phone system for payroll services firms in Tennessee

102 payroll services firms operated in Tennessee in 2023. Where they are, how big their teams are, and what phone service costs them.

Establishments
102CBP 2023
Employees
5,201mid-March 2023
Per 100k residents
1.4U.S. 1.6
State rank
18th of 51by count

Payroll services firms in Tennessee by the numbers

County Business Patterns counts 102 establishments in Tennessee classified as Payroll Services (NAICS 541214) for 2023. They employed 5,201 people in mid-March and reported $368.2 million in annual payroll. That is the 18th highest count among the 51 states and DC with published figures. Payroll services firms make up 0.07% of the 150,129 business establishments in the state.

Per 100,000 residents (2024 estimate) Tennessee has 1.4 payroll services firms, 13.6% below the national rate of 1.6. The average establishment has 51.0 employees against 55.7 nationally. Payroll per employee is $70,789, 6.8% above the U.S. figure of $66,265.

Payroll services firms: Tennessee compared with the U.S., 2023
MeasureTennesseeUnited States
Establishments1025,556
Mid-March employees5,201309,518
Annual payroll$368,172,000$20,510,140,000
Employees per establishment51.055.7
Payroll per employee$70,789$66,265
Establishments per 100,000 residents1.41.6

Census County Business Patterns 2023 (mid-March employment; annual payroll). Employees and payroll flagged high-noise are shown but not used in the text. Residents: Census Vintage 2024 estimates.

Where payroll services firms in Tennessee are concentrated

Census published payroll and bookkeeping firm counts for 5 metro or micropolitan areas that include part of Tennessee. The largest is Nashville, TN, with 43 establishments. Single-state metro and micropolitan areas account for 66% of the statewide total; the rest are outside any published area or in areas Census suppressed.

Payroll services firms by metro or micropolitan area, Tennessee, 2023
AreaEstablishmentsEmployeesPer 100k residents
Nashville, TN431,9532.0
Knoxville, TN201,6462.1
Memphis, TN-MS-AR142811.0
Chattanooga, TN-GA6531.0
Johnson City, TN4—1.9

Source: Census County Business Patterns 2023; population from Census Vintage 2024 estimates.

Team sizes at payroll services firms in Tennessee

34.7% of Tennessee's payroll services firms with employees had fewer than five people in March 2023, compared with 46.0% nationally. 51.0% had fewer than ten. At that size the phone is shared, so routing (who rings, when, and what happens after hours) matters more than the number of desk phones.

Payroll services firms in Tennessee by employment size, 2023
Employment sizeEstablishmentsShareU.S. share
1–4 employees3434.7%46.0%
5–9 employees1616.3%14.1%
10–19 employees1010.2%12.3%
20–49 employees1717.3%12.5%
50 or more employees2121.4%15.1%

Employment-size classes count establishments by mid-March 2023 employment. Establishments with no March employees are excluded from the size classes, so shares are of establishments with employees. Source: Census County Business Patterns 2023.

What payroll services firms in Tennessee use the phone for

Payroll providers work on fixed deadlines, and a client who cannot reach them on payday is a client at risk. Calls about new hires, tax notices and pay corrections need to reach the right specialist quickly.

Calls a payroll and bookkeeping firm in Tennessee might handle in a typical week include:

Business texting for payroll services firms

Firms text payroll cutoff reminders and approval requests.

Texting from a local number in Tennessee requires carrier registration (10DLC), a one-time $49 fee on Callata.

What a phone system costs a payroll and bookkeeping firm in Tennessee

Payroll services firms in Tennessee average 51.0 employees, so the comparison uses a 51-person team. On a per-user plan that headcount sets the bill: $1,272.45 a month on Ooma Office Pro or $1,530.00 on RingCentral RingEX Core at list price (checked September 28, 2026). Callata comes to $1,019.00 a month for 51 users ($99 a month with 5 users included, then $20 per additional user), below both.

Over a year, that is $6,132 less than RingCentral for a payroll and bookkeeping firm in Tennessee of that size. Annual contracts lower some competitors' prices, so compare the plan you would actually sign.

Monthly list price for a 51-person payroll and bookkeeping firm
Provider (plan)Pricing basisPer monthPer year
Callata (Callata Office)$99 incl. 5 users, $20 per extra user$1,019.00$12,228.00
Quo (Starter)$19.00 per user$969.00$11,628.00
Nextiva (Core)$23.00 per user$1,173.00$14,076.00
Ooma (Office Pro)$24.95 per user$1,272.45$15,269.40
Dialpad (Standard)$27.00 per user$1,377.00$16,524.00
RingCentral (RingEX Core)$30.00 per user$1,530.00$18,360.00

Competitor prices are each vendor's published month-to-month list price per user for its lowest plan that includes business calling and texting, checked September 28, 2026: Quo Starter $19, Nextiva Core $23, Ooma Office Pro $24.95 (Essentials excludes texting; one-time $29.95 activation not included), Dialpad Standard $27, RingCentral RingEX Core $30 ($20 billed annually). Prices exclude taxes and fees and may change; annual contracts lower some competitors' prices.

Area codes in Tennessee

Tennessee has 8 geographic area codes in service according to NANPA. Callata includes up to 3 local numbers, so a payroll and bookkeeping firm can hold a number in more than one of them.

Area codes in Tennessee by assigned exchanges
Area codeExchangesTime zoneIn service sinceOverlay with
615781Central1954629
423764Eastern and Central1995729
901616Central1947none
931538Eastern and Central1997none
865506Eastern1999none
731395Central2001none
629197Central2015615
7290Eastern and Central2025423

Exchanges are NANPA-assigned central office codes (NPA-NXX) in the rate centers matched to the area's named places. Source: NANPA utilized code and NPA reports.

How Callata works for payroll services firms in Tennessee

Callata Office costs $99 per month for up to 5 people, and each additional user is $20 a month. That covers up to 3 local numbers, calling from a browser or your cell, transcribed voicemail, recorded calls with AI summaries, after-hours routing and E911 on each number.

Porting a number you already use in Tennessee is free, and business texting is available once the carrier registration (10DLC) is approved; the registration carries a one-time $49 fee. Which specific numbers are open in a given area code depends on carrier inventory at the time you sign up.

AI agents are optional: an AI receptionist or scheduler can pick up when the team is busy or closed, take a message, send a text or email, or transfer the call. They draw on prepaid AI minutes ($0.25/minute), disclose that they are AI, and outbound AI calls require prior consent and are limited to 8am–9pm.

Avoid sending bank account or Social Security numbers by text.

Frequently asked questions

How many payroll services firms are in Tennessee?

102 in 2023, according to Census County Business Patterns. They employed 5,201 people in mid-March.

Which Tennessee metro area has the most payroll services firms?

Nashville, TN, with 43 establishments in 2023.

What does a phone system cost a 51-person payroll and bookkeeping firm?

$1,530.00 a month on RingCentral RingEX Core or $1,272.45 on Ooma Office Pro at month-to-month list prices (checked September 28, 2026); $1,019.00 on Callata ($99 a month with 5 users included, then $20 per additional user).

Do I need to register to text customers from a Tennessee number?

Yes. US carriers require business texting from local numbers to be registered (10DLC). On Callata the registration is a one-time $49 fee, and texting turns on once it is approved.