Payroll: It’s a headache for many business owners. Numbers, taxes, regulations – it’s a lot to handle and things can easily go wrong. But with outsourced payroll services, your employees are paid accurately and on time, all while staying compliant with the rules.
But not just any company will do. You need experts who know their trade. That’s why we’ve put together this guide to help you find the right one. We will give you the top 17 sites for outsourced payroll services and look at what they offer and why they might be the perfect fit for your business.
17 Expert-Recommended Outsourced Payroll Services in 2024
To ensure your payroll processes run smoothly, take a look at these platforms that offer payroll services for your needs:
1. Genius
Genius uses a strict vetting process and on-the-ground sourcing to find top payroll experts who tailor services to fit your needs. These professionals manage all payroll tasks: paycheck processing, tax filings, and compliance.
And here’s the best part: you get a 6-month talent guarantee, so you can be confident in your hire. Plus, we offer free interviews with the candidates, making it easy to find the perfect fit without any extra cost. With Genius, you know everything is done right and on schedule, so you can focus on running your business.
Best Features
- Only highly qualified payroll professionals are selected.
- Finds top-notch payroll experts through extensive local and international networks.
- Customizes payroll solutions to fit the unique requirements of your business.
Services Provided
- Payroll Processing
- Tax Filings
- Compliance Management
- Benefits Administration
Pricing: One-time 25% fee based on the payroll specialist’s first-year salary
2. ADP
ADP offers flexible payroll solutions to simplify payroll and support business scaling. They handle complex payroll while ensuring accuracy and seamless integration with a cloud-based system for valuable insights.
Their global network of experts offers local and global payroll processing, online self-service for employees and managers, and certified payroll professionals. With over 70 years of experience, they serve over 1,000,000 customers worldwide, supported by 45 centers in 140 countries.
Best Features
- Fully automated employee data management.
- Integration with HR and time & attendance.
- Scalable levels of service and outsourcing.
Services Provided
- Payroll Processing
- Tax Filings
- Compliance Management
Pricing: Custom plans.
3. Paychex
Paychex is a top provider of payroll, HR, benefits, and insurance services. With industry expertise since 1971, Paychex has served around 740,000 business clients in the U.S. and Europe. They simplify payroll for small and medium-sized businesses with their all-in-one platform, combining advanced technology with proactive customer support.
Best Features
- Dedicated support available 24/7.
- Flexible employee pay options.
- Paychex integrates with applications like Xero & Quickbooks to connect and share data.
Services Provided
- Payroll Services
- Employee Benefits
- HR Services
Pricing: Custom pricing.
4. Gusto
Gusto makes outsourcing payroll fast, accurate, and effortless. Their simple process lets you pay your team in just a few clicks, and they automatically file your payroll taxes. They have custom software which 88% of businesses find easier to use than their previous software. It covers features like health insurance, 401(k), workers’ comp, time tracking, and PTO.
Best Features
- Simple & easy-to-use interface.
- Data-backed guidance and reports.
- Free payroll software setup.
Services Provided
- Payroll Processing
- Employee Benefits Administration
- Hiring & Onboarding
Pricing:
- Simple Plan: $40/mo
- Plus Plan: $60/mo
- Premium Plan: $135/mo
5. OnPay
Onpay is the best payroll outsourcing company for small businesses. With OnPay, you can pay your team quickly, even from your phone, with just a few clicks or taps. You can also sync them with your favorite software, eliminating double data entry and saving you time. OnPay integrates seamlessly with QuickBooks, Xero, Guideline, Vestwell, and NEXT Insurance.
Best Features
- Unlimited pay runs & schedules.
- Expert support by phone, chat, & email.
- Free setup & data migration.
Services Provided
- Payroll Processing
- Tax Filings
- Employee Benefits Administration
Pricing: $40/mo base fee plus $6/mo per employee
6. SurePayroll
SurePayroll simplifies the payroll process for small businesses. They run payroll in 2 minutes or less and calculate and pay all federal, state, and local payroll taxes for you. You can manage the payroll service from any computer or mobile device, with cloud storage for your records. Their mobile apps for Apple and Android make it easy to run payroll on the go.
Best Features
- US-based customer service agents are available via email, phone, or chat.
- Safely store your payroll record & reports in the Cloud.
- Run payroll from any device with internet access.
Services Provided
- Payroll Processing
- HR Management
- Health Insurance
Pricing: Custom plans.
7. Paycor
Paycor outsourcing payroll services simplify every step of managing your team, from hiring and onboarding to payroll and career development. For over 30 years, they partnered with industry leaders to understand their needs. Their platform offers a unified solution that easily integrates with third-party apps. Plus, it offers powerful analytics, talent development tools, and customizable technology for specific industries.
Best Features
- Get tax setup guidance based on an employee’s work and home address.
- Get proactive alerts and compliance warnings directly on your Paycor homepage.
- Comprehensive resource center with webinars and case studies to simplify things.
Services Provided
- Payroll Processing
- Talent Management
- Employee Benefits
Pricing: Custom plans.
8. TriNet
TriNet’s payroll services let you focus on your people, not paperwork. Their tools save you time on payroll tasks and ensure compliance with pay regulations in any state. They provide accurate and on-time payments for all employees with direct deposit, e-pay stubs, pay cards, and electronic W-2s. Employees can easily view pay stubs and request time off via our mobile app.
Best Features
- HR tool to automate time tracking & leave requests.
- Integrates with QuickBooks Online to conveniently sync your payroll.
- Risk mitigation & up-to-date compliance.
Services Provided
- Payroll Processing
- Benefits Administration
- Contractors & Global Workforce
Pricing: Custom plans.
9. Intuit QuickBooks Payroll
Intuit QuickBooks Payroll is a payroll outsourcing company integrated with QuickBooks accounting software. It is designed to streamline payroll processing for small to medium-sized businesses. They easily run payroll with automated calculations, tax withholdings, and direct deposits. They also automatically calculate, file, and pay federal, state, and local payroll taxes.
Best Features
- Tax penalty protection: They’ll pay up to $25,000 if you receive a penalty for any reason.
- Round-the-clock expert support.
- Save time and money when you e-file 1099-MISC and 1099-NEC forms in QuickBooks.
Services Provided
- Payroll Processing
- Virtual Bookkeeping
- Payments & Banking
Pricing:
- Simple Start Plan: $9/mo
- Essentials Plan: $18/mo
- Plus Plan: $27/mo
- Advanced Plan: $60/mo
10. Rippling
Rippling offers a 100% error-free guarantee with their payroll outsourcing, providing accurate and timely payments every pay run. You can even compare current pay runs with previous ones to check for changes in gross pay, taxes, and deductions. They also handle your annual payroll tax reporting to ensure they’re filed correctly with federal, state, and local agencies, even when employees move.
Best Features
- Global payroll: Pay employees anywhere.
- Sync payroll & expenses to your general ledger.
- Your employees can see their pay stubs, request time off, and even view their W2s on-the-go in their mobile app.
Services Provided
- Payroll Processing
- HR Management
- Benefits Administration
Pricing: Custom plans.
11. UKG
UKG is a payroll provider with a software that eliminates manual data entries and complex technology issues common in legacy payroll systems. They offer real-time payroll processing reporting and provide complete insight at every step. The UKG mobile app lets employees check their pay, make changes, and see how payroll and benefit changes affect their next paycheck.
Best Features
- Changes and updates from federal, state, local, and regulatory agencies are automatically updated to the payroll system.
- All-in-one HR and payroll software to increase efficiency and simplify compliance.
- Seamless integrations with HR, time and attendance, and finance applications.
Services Provided
- Payroll Processing
- Workforce Management
- AI in HR
Pricing: Custom plans.
12. Justworks
Justworks is a payroll company with flexible solutions for small businesses, ensuring your team gets paid on time without hidden fees. Their platform simplifies payroll and HR operations and frees up your time for business growth. Their expert support helps you run your business with confidence. If any issues arise, their dedicated implementation managers and support team resolve them within one US business day.
Best Features
- Access easy-to-use HR tools integrated with their payroll solution.
- Flexible medical, dental, and vision plans that fit small business teams and budgets.
- Integrated time tracking add-on.
Services Provided
- Payroll Processing
- Benefits & Health Insurance
- Compliance & Risk Management
Pricing:
- Payroll Plan: $50/mo base fee + $8/mo per person
- PEO Basic Plan: $59/mo per person
- PEO Plus Plan: $109/mo per person
13. Wagepoint
Wagepoint makes your life easier by simplifying payroll processes. Enter your data once and approve it, then they handle the rest. Employees can log into a secure portal to view pay stubs, edit banking and personal information, and access T4s/T4As. Their in-app payroll calendar helps you avoid missed deadlines by including processing deadlines, bank holidays, and changed pay dates.
Best Features
- Send money directly to your employees’ bank accounts.
- Generate and submit your Records of Employment (ROEs).
- Give everyone online access to their pay details.
Services Provided
- Payroll Processing
- Onboarding
- Employee Data Management
Pricing:
- Solo Plan: $20/mo base fee + $4 per employee
- Unlimited Plan: $40/mo base fee + $5 per employee
14. Dayforce (Formerly Ceridian)
Dayforce (formerly known as Ceridian) is a cloud-based human capital management (HCM) platform designed to manage HR, payroll, benefits, workforce management, and talent management. They provide an integrated solution that helps businesses streamline their payroll processes, improve compliance, and enhance workforce productivity.
Best Features
- Global payroll: Pay employees in over 200 countries.
- Their compliance professionals monitor changing payroll and tax rules so you can stay ahead of any changes.
- Access to on-demand pay to improve employees’ well-being by helping them meet their financial commitments on time.
Services Provided
- Payroll Processing
- Workforce Management
- Managed Benefits Services
Pricing: Custom plans.
15. Square Payroll
Square Payroll makes payroll easy and protects your business. Integrated with your POS, you can pay employees from your dashboard, import time cards and tips, and process payroll faster. They handle taxes, and compliance, and offer expert advice to help you with tax filing, staying compliant, and managing payroll.
Best Features
- Set your payroll to run automatically to pay your employees every pay period.
- Manage your team and run payroll anytime, from anywhere, with the mobile Square Team App.
- Qualifying businesses have the option to run payroll up to 2 business days before your team’s pay date, giving you more time and flexibility.
Services Provided
- Payroll Processing
- Appointments POS
- Invoices
Pricing:
- Full Service Payroll: $35/mo base fee + $6/mo per person
- Contractor-Only Payroll: $6/mo
16. Patriot Software
Patriot Software is an online accounting and payroll software provider designed for small businesses. It offers a user-friendly platform that simplifies payroll processing, tax filings, and accounting tasks. They are known for their affordability, ease of use, and strong customer support.
Best Features
- Unlimited payrolls: You can pay your employees as often as you want without being charged for extra payroll runs.
- Up to 5 pay rates for each hourly employee: You can differentiate pay rates for employees by adding a description to each rate.
- Employees have secure access to their pay stubs, pay history, time off balances, and electronic W-2s.
Services Provided
- Payroll Processing
- Human Resource Tools
- Accounting Reports
Pricing:
- Basic Payroll Plan: $17/mo base fee plus $4/mo per employee
- Full-Service Payroll Plan: $37/mo base fee plus $4/mo per employee
17. Paylocity
Paylocity online payroll software has served over 50,000 customers across various industries in all 50 states. You can customize your payroll setup, including check types, time off accruals, and reporting. They offer general ledger mapping that can be updated easily without assistance, or you can opt for specialized implementation and customized reporting.
Best Features
- Payroll Readiness Dashboard: Provides a comprehensive overview of your critical payroll tasks well ahead of your processing day.
- 40+ configurable pre-submit audits flag if something looks irregular.
- Integrated global payroll with real-time access to aggregated payroll data across 100+ countries.
Services Provided
- Payroll Processing
- HR Management
- Benefits Administration
Pricing: Custom plans.
How To Choose The Right Outsource Payroll Services For YOUR Needs
Before choosing payroll outsourcing companies, consider these factors to make the best decision for your business needs:
I. Service Offerings
Make sure the payroll providers offer tax filing, direct deposit, and employee self-service portals. This ensures all payroll-related tasks are handled efficiently, saving time and reducing the risk of errors.
To do this:
- Look at the provider’s website and service descriptions to see if they offer a full range of payroll services.
- Ask for detailed proposals or service brochures that outline their offerings.
- Read reviews or contact other businesses that use the service to understand their experiences.
II. Pricing Structure
Compare costs and pricing models to find a payroll outsourcing provider that fits your budget. Here are different price structures that you can match your needs with:
- Per Employee, Per Month (PEPM): A fixed fee is charged for each employee every month. This is a predictable cost that scales with the number of employees, making it easy to budget and manage expenses as your workforce grows or shrinks.
- Flat Monthly Fee: A fixed monthly fee regardless of the number of employees. This simplifies budgeting with a consistent monthly cost, ideal for businesses with a stable employee count.
- Pay-As-You-Go: Charges based on actual payroll transactions processed. This is cost-effective for businesses with fluctuating payroll needs or seasonal employees, ensuring you only pay for what you use.
- Tiered Pricing: Different pricing tiers based on the number of employees or the level of services required. This provides flexibility to choose a pricing tier that matches your current needs, with the option to upgrade as your business grows.
- Bundled Services: Pricing includes multiple services (ex. payroll, HR, benefits administration) in one package. This gives cost savings and convenience of having multiple services handled by a single provider, often at a lower combined cost than purchasing separately.
- Custom Pricing: Pricing based on specific business needs and service requirements. This is a personalized approach that is more cost-efficient.
III. User Reviews & Ratings
Check feedback from other businesses to assess reliability and service quality. You can:
- Search for the payroll service provider and read through the user reviews and ratings.
- Join forums and social media groups where business owners discuss their experiences with different payroll service providers.
- Contact references to check their experiences, the quality of service, and the challenges they faced.
IV. Integration Capabilities
Look for providers that can integrate with your existing HR and accounting systems. This reduces the need for manual data entry, minimizing payroll errors and saving time. You can automate data transfer between systems to ensure that payroll calculations, tax filings, and employee records are consistently accurate and up-to-date.
V. Compliance & Security
Make sure the provider adheres to tax regulations and has advanced data security measures in place. Your business will remain compliant with local, state, and federal laws, reducing the risk of costly fines and legal issues.
To check this, follow these steps:
- Make sure the provider has relevant certifications like SSAE 18, ISO 27001, or SOC 1 and SOC 2, which indicate adherence to industry standards for security and compliance.
- Check if the provider uses encryption, firewalls, and secure access protocols to protect your data. Ask for details about their data backup and disaster recovery plans.
- Confirm that the provider stays updated with local, state, and federal tax laws. They should offer regular updates and resources to ensure your business remains compliant.
- Request audit reports from the provider, which detail their compliance with regulatory requirements and security standards. This can give you confidence in their processes and controls.
- Speak to current clients and read online reviews to gauge the provider’s track record in maintaining compliance and data security. Look for feedback specifically about their handling of regulatory changes and security breaches.
VI. Customer Support
Choose a payroll outsourcing services provider with strong customer support to address any issues promptly. This minimizes disruptions to your business operations.
Here are indicators of strong customer support:
- The provider offers 24/7 support through multiple channels like phone, email, and live chat, ensuring help is always available when you need it.
- Each client is assigned a dedicated account manager who understands their specific needs and can provide personalized assistance and quick resolutions.
- The provider guarantees quick response times, with clearly stated SLAs (Service Level Agreements) for addressing and resolving issues.
- Look for consistently high ratings and positive reviews from current clients about the provider’s customer service.
- The provider offers thorough onboarding, regular training sessions, and easily accessible resources (like FAQs, tutorials, and user guides) to help clients effectively use their services and resolve common issues independently.
VII. Scalability
Choose a service that can grow with your business. This helps you easily adapt when there is an increasing number of employees, ensuring smooth payroll processing as your business expands.
To know if an outsourcing payroll provider is scalable, check for the following:
- Flexible pricing plans
- Integrates easily with other HR, time-tracking, and accounting systems
- Customizable features and services
- Global support
Implementing Outsource Payroll Services In 10 Easy Steps
Follow these easy steps for a smooth implementation of outsourced payroll services:
Step 1: Assess Your Needs
Identify the payroll functions you need, common tasks are:
- Payroll processing
- Tax filing
- Employee self-service options
Step 2: Research Providers
Compare different payroll outsourcing service providers based on their offerings, pricing, reviews, and features. Create a spreadsheet file to easily compare them.
You can use this table to analyze your payroll outsourcing providers:
| Provider | Services offered | Pricing | Rating | Best features |
| Name 1 | – Automated payroll processing – Tax filing | Monthly subscription | ★★★★★ | – Globally available – 24/7 support |
| Name 2 | – Payroll processing – Tax filing – Employee self-service options | One-time payment fee | ★★★★☆ | – 2 factor authentication – Dedicated compliance team |
Step 3: Request & Evaluate Proposals
Contact shortlisted providers to request detailed proposals. Here’s the information you need to check with them:
- Pricing
- Services
- Implementation timelines.
Analyze the proposals to know which payroll outsourcing provider best matches your business needs and budget.
Step 4: Check References
Contact other businesses that used the provider’s payroll functions and get feedback on their experiences. You can:
- Ask the provider to share written testimonials from current or past clients that highlight their experiences and satisfaction with managing payroll using the service.
- Arrange phone calls with the references for a direct conversation about their experiences, focusing on areas like service quality, reliability, and customer support.
- Check online review platforms like Google Reviews, Trustpilot, or Capterra for unbiased customer feedback and ratings on the payroll provider.
- Ask the references about specific scenarios relevant to your business like handling of payroll errors, compliance issues, or the implementation process. This will help you gauge how the provider performs in critical areas.
- Request case studies from the provider that detail how they have successfully managed payroll for businesses similar to yours, highlighting problem-solving abilities and overall performance.
Step 5: Make a Decision
Choose the provider that best fits your criteria and negotiate the contract terms.
Here’s a contract template JUST FOR YOU:
| Payroll Outsourcing Services Agreement This Payroll Outsourcing Services Agreement (“Agreement”) is made and entered into as of [Date], by and between: Company Name: [Your Company Name] Address: [Your Company Address] City, State, ZIP: [City, State, ZIP] (Hereinafter referred to as “Client”) Service Provider: [Service Provider Name] Address: [Service Provider Address] City, State, ZIP: [City, State, ZIP] (Hereinafter referred to as “Provider”) 1. Services Provided The Provider agrees to provide the following payroll outsourcing services to the Client: – Payroll processing and administration – Tax filing and compliance – Direct deposit and paycheck distribution – Employee self-service portal – Time and attendance integration – Custom reporting and analytics 2. Term of Agreement This Agreement shall commence on [Start Date] and continue for a period of [Initial Term, e.g., one year] unless terminated earlier in accordance with the terms herein. This Agreement will automatically renew for successive [Renewal Term, e.g., one-year] periods unless either party provides written notice of non-renewal at least [Notice Period, e.g., 30 days] prior to the end of the then-current term. 3. Fees and Payment Terms – The Client agrees to pay the Provider fees as detailed in [Exhibit A/Attachment]. – Payment is due within [Number of Days, ex. 30 days] of receipt of the invoice. – Late payments will incur interest at the rate of [Interest Rate, e.g., 1.5%] per month. 4. Responsibilities of the Provider The Provider shall: – Perform all payroll services accurately and in compliance with applicable laws and regulations. – Maintain confidentiality and security of the Client’s payroll data. – Provide timely reports and access to payroll information as requested by the Client. 5. Responsibilities of the Client The Client shall: – Provide accurate and complete information necessary for payroll processing. – Notify the Provider of any changes in payroll data, including employee information and tax details. – Ensure timely approval of payroll and related transactions. 6. Confidentiality Both parties agree to maintain the confidentiality of all proprietary information disclosed under this Agreement. This obligation shall survive the termination of this Agreement. 7. Indemnification The Provider agrees to indemnify and hold harmless the Client against any claims, damages, liabilities, and expenses arising from the Provider’s breach of this Agreement or failure to comply with applicable laws. The Client agrees to indemnify and hold harmless the Provider against any claims, damages, liabilities, and expenses arising from the Client’s breach of this Agreement or failure to provide accurate payroll information. 8. Limitation of Liability In no event shall either party be liable for any indirect, incidental, special, or consequential damages, including loss of profits, even if advised of the possibility of such damages. 9. Termination This Agreement may be terminated by either party: – For convenience, with [Notice Period, ex. 60 days] written notice to the other party. – For cause, if the other party materially breaches this Agreement and fails to cure such breach within [Cure Period, ex. 30 days] after receiving written notice of the breach. 10. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles. 11. Entire Agreement This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, representations, and understandings. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. Client: [Your Company Name] By: _________________________ Name: _______________________ Title: ________________________ Date: ________________________ Provider: [Service Provider Name] By: _________________________ Name: _______________________ Title: ________________________ Date: ________________________ Exhibit A: Fee Schedule – Basic Payroll Processing Fee: $[Amount] per payroll run – Tax Filing and Compliance Fee: $[Amount] per month – Direct Deposit Fee: $[Amount] per employee per payroll run – Custom Reporting Fee: $[Amount] per report – Additional Services Fee: $[Specify] |
Step 6: Plan Implementation
Work with the provider to develop an implementation plan, including timelines, key milestones, and responsibilities. Here’s a weekly plan you can start with:
| Week | Tasks | Details |
| 1-2 | Kick-off Meeting, Data Collection, and System Configuration | Meet with the provider, define scope, gather payroll data, and configure the payroll system. |
| 3-4 | System Testing and Validation | Conduct initial system tests, perform parallel payroll runs, and finalize system setup. |
| 5 | Employee Training and Final Adjustments | Train payroll administrators and staff, make final system adjustments based on feedback. |
| 6 | Go-Live Preparations and Execution | Confirm data readiness, communicate go-live details, and officially transition to new system. |
| 7-8 | Post-Implementation Review and Ongoing Support | Review the implementation process, discuss improvements, and establish regular check-ins. |
Step 7: Data Migration & System Integration
Transfer your existing payroll data to the new system, ensuring accuracy and completeness. Integrate the payroll system with your existing HR and accounting software for seamless operations using these:
- Make sure all payroll data is accurate and up-to-date. Remove any duplicate or outdated records.
- Before migration, back up all existing payroll data to prevent any loss during the transfer.
- Map data fields from the old system to the new one, ensuring all relevant information is accounted for.
- Perform a test data migration to identify potential issues or discrepancies.
- Transfer all payroll data to the new system, following the validated process from the test migration.
- Integrate the new payroll system with your existing HR and accounting software for seamless operations.
- Provide training for payroll administrators and relevant staff on the new system and its integrations.
Step 8: Monitor & Adjust
Review the system’s performance weekly after the first implementation and make necessary adjustments to optimize efficiency and accuracy. Ask for feedback from the team to identify issues or areas for improvement. Then, you can review them monthly once the employees get used to the system.
You can use these metrics to measure the performance of the payroll providers:
- Payroll Accuracy Rate: The percentage of payroll runs processed without errors.
- Processing Time: The average time it takes to complete the entire payroll process from data entry to final approval.
- Compliance Rate: The percentage of payroll runs that comply with all relevant local, state, and federal regulations.
- Error Resolution Time: The average time it takes to identify and resolve payroll errors.
- Employee Satisfaction: The level of satisfaction employees have with the payroll process, often measured through surveys.
Compliance & Security When Working With Outsource Payroll Services
To keep up with regulations and avoid penalties, make sure you follow these practices when working with outsourced payroll services:
A. Regular Updates on Legislation
Ask your payroll service providers to stay informed about the latest changes in tax laws and labor regulations at local, state, and federal levels, and to keep you updated on these changes. Then, implement these updates promptly to ensure compliance.
For instance, if there is a new federal regulation that changes the tax withholding rates, your payroll service provider should inform you about this. They should update the payroll system to apply the new withholding rates to all employees’ paychecks. This ensures that your company remains compliant with federal tax laws and avoids any potential penalties.
B. Automated Compliance Checks
Pick providers who use software that automatically checks payroll processes against current regulations.
For example, there are softwares that can cross-reference employee payroll data with the latest legal requirements to ensure that all withholdings, contributions, and deductions are accurately calculated and applied, reducing the risk of non-compliance.
C. Dedicated Compliance Teams
Make sure your provider has dedicated teams of experts who specialize in compliance, ensuring that all payroll activities adhere to the latest laws and regulations.
A dedicated compliance team can monitor changes in employment laws, like updates to the Fair Labor Standards Act (FLSA), and adjust payroll policies accordingly. They can also conduct regular audits of payroll records to identify and correct any discrepancies, ensuring that your business remains compliant with all applicable regulations.
D. Accurate Tax Filing
Track your outsourced payroll services handling of filing of payroll taxes. Make sure they do it accurately and timely to reduce the risk of penalties and interest for late or incorrect filings.
E. Employee Classification
Double-check the list of employees your providers use to ensure correct employee classification (full-time, part-time, contractor) and compliance with wage and hour laws.
F. Record Keeping
Ask your providers to maintain detailed records of all payroll transactions and employee data. Make sure that records are easily accessible for audits and other compliance requirements.
For instance, storing digital copies of pay stubs, tax filings, and employee timesheets for a minimum of 7 years provides documentation during a state labor department audit or responding to an employee’s request for historical pay information.
G. Audit Support
In the event of an audit, provide the documentation and support needed for a smooth audit process. You can ask your payroll service provider for this or give your copy to the audit team.
If the IRS conducts a payroll tax audit, ask your payroll service provider to supply detailed records of all payroll transactions, tax filings, and employee data. They should give you forms like W-2s, 1099s, and payroll registers. Hand these documents promptly and accurately to demonstrate compliance and expedite the audit process.
H. Data Encryption
Look for payroll service providers that use advanced encryption methods to protect sensitive data during transmission and storage, ensuring that unauthorized parties cannot access the information.
I. Data Backup & Recovery
Maintain regular data backups and have disaster recovery plans in place to ensure data integrity and availability in case of an emergency. Don’t rely solely on payroll service providers to keep your data safe. Always create your own data backups to protect against issues like data breaches or provider failures.
J. Incident Response Plan
Have a clear incident response plan in place to quickly address any security breaches or data incidents and minimize potential damage.
For example, if your payroll system detects unauthorized access, isolate the affected systems, notify impacted parties, and conduct a thorough investigation to identify the breach’s source and prevent future occurrences.
K. Regular Software Updates
Make sure your payroll software and systems are regularly updated to protect against threats. Regular updates have enhancements and new features like updated encryption protocols that improve functionality.
Conclusion
Choosing the best outsourced payroll services provider is a big decision for any business. The 17 companies we discussed in this article are the best in the industry. But this is just a starting point. Do your own research and compare providers before settling on one. Your business deserves the best payroll solution possible.
If you’re looking for experts to get it right the first time, partner with Genius. We have a top-notch pool of candidates who excel in payroll services. We employ a strict vetting process, providing you with the top 1% talent to match your needs. Fill out this form now to get started.
FAQs
What is the best outsourced payroll service for startups?
For startups, the best outsourced payroll service offers a user-friendly interface, affordable pricing, and scalability to grow with your business. Look for features like automated payroll processing, tax filing, compliance support, and integration with other business tools like accounting and HR software.
Is there a global payroll system?
Yes, several global payroll systems exist like ADP and Paylocity. They offer comprehensive payroll services that can handle multiple currencies, tax regulations, and compliance requirements for international employees. These systems streamline payroll processes for businesses operating across different countries.
What are the benefits of payroll software?
Payroll software automates payroll calculations, tax filings, and compliance, saving time and reducing errors. It also provides secure data management, easy access to employee records, and integration with other business systems.
What is a PEO payroll service?
A Professional Employer Organization (PEO) payroll service handles payroll processing, benefits administration, and compliance management, by co-employing your workforce.
