6 Best Payroll Outsourcing Companies for 2024

HCM software value is steadily growing and is projected to increase from $30.8 billion in 2019 to an estimated $33.04 billion by 2024. Cost is an important factor when choosing a payroll company. You must have an estimate in mind that you are willing to pay monthly or annually to meet your payroll needs.

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. Gusto includes features that might appeal particularly to modern https://accountingcoaching.online/ startup workers, including automated charitable donations. Plus Gusto’s Wallet app gives employees greater control of and access to their money. OnPay is a straightforward, all-in-one payroll and HR solution for small businesses. It comes with just one competitive price—$40 plus $6 per employee per month—that includes all services.

Transfer essential data to the payroll company

Payroll taxes can get complex and tedious as your business grows. 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. If you don’t, make sure to hire a reliable tax professional to handle this process for you.

1. While many cloud-based programs for payroll data management use encrypted servers and firewalls for security, they are juicy targets for malicious activity.
2. One of the main outsourcing advantages regardless of the task is time savings.
3. To find out which payroll company may best suit your business, check out our guide to the best payroll outsourcing companies.

Unburdening your HR teams from manual payroll makes their work much more rewarding. Now they can focus on strategic objectives and react in an agile manner as events arise. Blueprint is an independent publisher and comparison service, not an investment advisor.

Best Payroll Services of 2024

We considered a number of companies, and they all brought something different to the table. We ultimately selected ADP, as we found they offered the best overall package and the level of support we were looking for. Superior HR tech and services designed to help you manage your entire workforce with ease. If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support. That said, most companies looking to solve their payroll woes have a number of things in common, and we’ve listed many of those core concerns here to help guide your search.

Generally, if you choose a paid solution, you can expect to pay between $30 to $80, on average. Payroll is an important business function that can be time-consuming, and costly, and keep you away from core processes. If you do your research, find trusted companies, and can justify the cost with the benefits, outsourcing payroll could very well be the answer for you. Payroll service providers typically have the infrastructure in place to handle crucial data securely.

Payroll is one of the most important aspects of your business. However, it’s worth investing in finding the right provider for that system. During this, you can schedule check-ins and regular evaluations of the payroll company’s performance.

Outdated processes continue to impact businesses’ bottom line. The best payroll providers will work with HR — not against it — to find the best process. For more advanced services, pricing can be a little higher per month—but the long-term savings in time, effort, and accuracy quickly make outsourced payroll cost-effective. Only 17% of US businesses outsource payroll—it’s common to not know when to make the switch.

If you can squeeze some “good to have” features as well, do so but don’t overextend yourself. The payroll software you use should integrate with QuickBooks or whichever accounting software you use to keep an accurate record of payroll history in the event of an audit. Payroll software should also integrate with benefits administration software for accurate deductions and with time tracking software. Payroll refers to the total compensation a company pays employees for their work. Payroll also refers to the process of calculating employees’ net pay and initiating payment to them. Whether you have one employee or 100, you’ll need to process payroll to ensure they get paid correctly and that proper records are kept.

Rippling: Best overall outsourced payroll service

If you’re just using software, either the tool can pay your people or it can’t. Either way, you’re on the hook if something isn’t compliant. Companies experienced in arranging outsourcing contracts with third-party entities can rely on past experience for guidance.

Driving HR strategy for a future-ready business

In 2024, a wide selection of “payroll outsourcing providers” are to be found both domestically and internationally. While different companies will have different criteria for evaluating a good match, they all must ensure a provider maintains adequate protections for employee data and complies with relevant regulations. It also includes managing information relevant to the tax process such as health insurance and workers’ compensation claims.

What people say about ADP payroll outsourcing

Paychex Flex is made specifically for small businesses that need a quick and simple payroll system. It’s stripped down for businesses that just need easy payroll, with flexibility to add on services as you grow. Expect there to be a learning curve, both for you and your employees.

To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. This is the exact system Outsource School’s founders, Nathan Hirsch and Connor what is a financial statement detailed overview of main statements Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019. Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.

By breaking down the payroll into blocks, you can select which ones to outsource, retain, and ponder further. This table is designed to give you an idea of the relative pricing of the top payroll companies available. If payroll isn’t automated, you have to run it manually on schedule a couple of days before payday, entering worker pay amounts and scheduling paydays. For pricing, we considered whether a service offers a free trial, as well as the affordability of its lowest and highest price tiers. 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. Here are some of the categories we used to rank the providers that made the top of the list.