15 Top Payroll Outsourcing Companies and Services in 2023

Moreover, they provide a scalable service that can grow with your business. A good payroll outsourcing company should offer a wide range of services beyond just payroll processing. This includes handling payroll taxes, compliance with local, state, and federal laws, direct deposit setup, wage garnishments, and end-of-year tax forms. Having all these services under one roof can greatly simplify your payroll process and reduce the chances of errors. A PEO service may come with a higher price tag than basic payroll outsourcing options. This includes calculating wages based on hours worked, processing payroll taxes and other deductions, and distributing the pay via direct deposit to employees.

With their robust systems and knowledgeable teams, these service providers prove to be a worthwhile investment for any business. One standout feature of Deluxe is their cloud-based platform, which provides businesses with easy access to payroll data at any time. They also offer additional services such as HR solutions and tax assistance. Paycor provides a powerful payroll solution, making it an ideal choice for businesses of all sizes. Their software handles all aspects of payroll management, ensuring accurate and on-time employee payments. In many cases, companies outsource payroll because they’ve determined it to be more cost-effective than managing payroll in-house.

  • With Hourly, you can talk to a real person whenever you need a question answered.
  • Paying your workers—whether domestic or foreign—doesn’t only involve giving them their salary at the end of the month.
  • Companies that offer upfront pricing received higher ratings here than those that require filling out a lead capture form or making a call to a sales department.
  • Outsourcing payroll to trusted experts allows you to focus that energy – and budget – on your business goals, while keeping your valued team members paid accurately and on time.
  • Regardless of if you are among the small business owners in need of HR assistance or you run a larger company, continue reading to find the best payroll provider for your situation.

Gain access to the talent and resources you need to process your payroll, address employee requests, and execute year-end activities. You might need to opt for paid add-ons to ensure you have all the “must have” features in your payroll service. If you can squeeze some “good to have” features as well, do so but don’t overextend yourself. Deluxe offers a variety of services to businesses, including marketing and business development, in addition to payroll and HR services. ADP RUN is a fit for businesses that need a customizable platform for payroll and benefits. It’s designed for companies with fewer than 50 employees, but is a good fit if you expect to grow beyond that because you could upgrade to ADP Workforce now or ADP’s enterprise platform.

Data Security

In addition to using Paycor to automatically calculate employee tax withholdings and deductions, you can also use the Paycor payroll tax software to pay your own payroll taxes. ADP’s basic Essential Payroll plan is sufficient when you only need to submit direct deposit payments for 1099 contractors or W-2 employees. Gusto is an online payroll software that makes payroll easy and affordable. You can use one of their standalone plans as low as $45/month, or you can add their free app to your FreshBooks account.

  • Get access to payroll for W-2 and 1099 workers, automatic tax payments and filing and an employee self-service portal for self-onboarding, documents and PTO tracking.
  • Direct deposits are the quickest and most convenient, but it’s still nice to have this option when it’s easier to write a check.
  • With SurePayroll, you can either submit payroll online or with their self service mobile app.
  • A PEO acts like a co-employer of your employees, helping you manage a wide range of payroll tasks.
  • Besides cost, here are 13 great questions to ask when deciding to outsource payroll for small business or looking for a third-party vendor—whether a bookkeeper, payroll provider, or PEO.
  • Larger companies are more likely to retain payroll in-house, since they can process payroll at lower cost than suppliers, and can retain payroll information within their computer systems.

If a provider handles payroll data for employees in the European Union (EU), they have to meet General Data Protection Regulation (GDPR) standards. Your provider should also have a data processing agreement (DPA), which outlines how the parties will process and store your data in compliance with the GDPR. This includes appropriate security policies, encryption, physical data protection measures, and risk assessments. If your team isn’t familiar with local labor classification laws, you may be at a greater risk for misclassification. Additionally, payroll companies offer expertise in tax laws and regulations. This mitigates the risk of errors and non-compliance penalties, providing peace of mind for business owners.

Best Payroll Services For Small Business (

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How do you find the right payroll outsourcing services for your needs?

Most payroll suppliers have the capability to issue payments to employees by direct deposit. Companies that process their payroll in-house can also do this, but only through the services of a third party that handles direct deposit. You can pay your contractors with payroll outsourcing services or payroll provider. Through this part of the platform, you’ll have access to a full-service payroll system.

If your employees have a question about their latest paycheck, they can call and speak to a dedicated team member who knows your business. Also, if your company receives a notice to garnish an employee’s paycheck, the PEO will work on filing the garnishment under its own employer identification number. Remember, employers are ultimately responsible for the payment of income tax withheld and of both the employer and employee portions of social security and Medicare taxes. People-first platforms like Hourly have responsive customer service teams that can deliver the help you’re looking for whenever and wherever you need it.

Why You Can Trust Forbes Advisor Small Business

Whether your organization is in a growth phase or your business model is evolving, change will impact your payroll function. Outsourcing gives you access to the right expertise to handle spikes in demand, support restructuring, or undergo a merger or acquisition. The benefits of payroll software are payroll accuracy, timeliness and compliance.

Paychex is a payroll and HR service provider for businesses of all sizes. Paychex Flex is its simplified payroll platform designed for small businesses with fewer than 50 employees. There are many payroll software products available—many at affordable rates. Before paying for service, check for online customer software reviews. Many companies can build an attractive website, but their product quality doesn’t always match. Take one or two bad reviews of the same software with a grain of salt, but if you find several with similar complaints, take caution.

OnPay ensures precise payroll processing and tax filing, alleviating the burden of these tasks from your team. Engaging a PEO will also provide you with HR services such as benefits, compliance, and risk management in addition to handling payroll processing, deductions, and reporting tasks. PEOs are suitable to businesses of all sizes as they have the flexibility and expertise to handle the different legal jurisdictions and tax laws. Besides a fixed monthly cost, online payroll services often charge per transaction or employee payment. This implies that the larger the number of employees, the greater the transaction fee. If you are planning to expand your workforce, carefully consider how your payroll service cost will change while you are growing.

Best Practices for Outsourcing Payroll

Payroll outsourcing services streamline your payroll processing system. This includes calculating tax withholdings and deductions, depositing employee paychecks for each timesheet, compiling payroll reports, and producing payroll registers. Opting for payroll outsourcing can be an investment that pays off significantly in the long run.

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