10 Reasons to Outsource Payroll Processing

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. You can manage benefits including insurance and retirement plans with access to most major providers. The goal of outsourcing payroll is to ensure your people are paid accurately, and on time, while reducing the amount of effort and resources required of your organization. That being said, it’s also important to ensure you have full visibility into your payroll. Whether you have one employee or hundreds, processing payroll demands time and attention to detail.

The terms “payroll service provider” and “payroll services” are often used to apply to either type of organization. We recommend checking out our 2024 guides for the best cheap payroll services, best payroll services for small businesses and best PEO services. ADP Run is a payroll outsourcing service specially designed for small businesses from ADP, the world’s largest payroll outsourcing company.

Paychex Flex

Cloud-based human capital management (HCM) systems that include payroll applications are becoming the new norm. Popular examples include Workday, Oracle Cloud, UKG and Ceridian Dayforce. You need to decide if you want the new payroll solution to handle taxes or not. If the answer is yes, look closely at the cost for year-end calculations because that usually comes with an extra price tag.

It strips away the complex features of the broader Paychex platform to stand out as a provider of easy employee payroll. Reduce risk and save time by relying on a partner to help manage your tax fulfillment needs, including  compliance, filing, and administration. Ceridian’s payroll outsourcing experts provide integrated garnishment administration and in-house tax services under a single contract. In many cases, companies outsource payroll because they’ve determined it to be more cost-effective than managing payroll in-house.

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Outsourcing HR is particularly beneficial for small and medium businesses that may not have the resources or expertise to manage these tasks internally. By outsourcing, they gain access to specialized skills, advanced technology and best practices, often at a lower cost than maintaining an in-house HR department. Sage HR is tailored for global businesses, focusing on international compliance and support. The platform can handle currencies from several countries and compliance with various labor and employment laws.

They also maintain the necessary documentation for audits and compliance purposes. By outsourcing payroll, business owners can focus on their core activities and leave the payroll tasks to the professionals. Some payroll companies, including Rippling, TriNet, ADP and Paychex also offer PEO solutions.

Should I outsource payroll to a vendor?

Payroll outsourcing companies are experts in their field and have the necessary tools and knowledge to ensure accurate and compliant payroll processing. By outsourcing, businesses can minimize payroll errors and avoid penalties for non-compliance. Payroll outsourcing services refer to the practice of delegating the responsibility of payroll management to a third-party outsourcing provider, such as a BPO, outsourcing company, or payroll company. In addition to payroll outsourcing, Deluxe offers software for business, payment processing, and marketing solutions. ADP Run was developed with small businesses (less than 50 employees) in mind.

• Many of these services offer a variety of additional services including benefits administration and HR services, usually for an additional cost.
• Here are 11 great companies for outsourced payroll services, including Near, ADP, and Gusto.
• Many companies can build an attractive website, but their product quality doesn’t always match.

Like some other systems, Wave Payroll includes payroll processing for contractors. Unlike most others, however, Wave only charges a monthly fee for the contractors that were paid in a given period. If a company has 10 contractors or vendors on call but only used 2 in a given month, they will only be charged for 2 contractor payrolls. For more 5 heartfelt messages to support your employees during covid information on how to choose the right set of payroll services for your company check out our guide, How to Outsource Your Payroll – Step by Step Guide. Square Payroll is unique in offering a plan with no monthly base fee; the contractor plan charges a small monthly charge for each contractor payroll processed as a basic, no-frills plan.

Evaluate which tier would be least expensive for you in the long run before signing up. Payroll management is essential for the easy handling of employee salaries, wages, taxes and other deductions. Some businesses handle it in-house while others trust outsourced payroll providers, which have become popular because of their simplicity and effectiveness. Outsourcing payroll doesn’t take away your responsibility, but it gives you more time and energy to invest in core areas of your business. For businesses that use many different contractors, but do not necessarily pay each of them every month, the flexibility of Wave Payroll will bring significant savings on their monthly fees.

Payroll software

There is a certain degree of risk if communication lapses – for example, if you don’t advise the payroll specialist of a staff member starting or leaving. Whether payroll outsourcing will be cost-effective for your business depends on the complexity of your payroll requirements. Perhaps even more concerning is the increased risk of a breach of sensitive data that outsourcing inevitably brings.

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They offer online payroll services that include an easy-to-use platform, automatic tax filings, and the ability to manage payroll from your mobile device. Let’s look at what outsourced payroll services include, the benefits of outsourcing payroll, and debunk some common myths about the practice. Payroll is an essential bookkeeping function for any business, as it involves calculating salaries, withholding taxes, and managing employee benefits. However, handling payroll can be time-consuming and complex, especially for small or growing businesses. The best payroll company for your business depends on the size of your business, the industry and which services you seek.

Help Employees Save for Retirement and Reduce Taxable Income

There are several ways to outsource payroll, each with its own pros and cons. However, make sure to conduct a thorough cost-benefit analysis when you’re considering HR consulting. The nature of the services, the quality of the provider and other factors play a crucial role in determining actual savings. For instance, you can avoid paying for internal HR staff, which can add up with all of the salaries, benefits and trainings.

They send paychecks to more remote locations by overnight delivery service. An advantage of Square is that Square Payroll will work with all of Square’s other products, such as POS and online store solutions, banking management, staff scheduling, and more. With all of these options, Rippling becomes an all-in-one HR and enterprise solution. Rippling also provides setup assistance to ensure the software is configured to the needs of each business. Vet your outsourcing partner or professional to make sure they haven’t had any legal action against them. You’re giving this person or vendor direct access to your business accounts and confidential employee data such as Social Security numbers, birth dates, and checking account routing numbers.