Comparing 7 of the Largest Payroll Outsourcing Companies

Non-compliance with local payroll-related regulations is serious, and can result in fines or even jail time. Be sure your provider understands the local legislative environment and has a feel of where it is going. You should be able to access this on-the-ground, real-time expertise whenever required, so that you are always up to speed with the latest regulatory changes happening in country. The Covid-19 pandemic has made remote and hybrid working the norm for many companies, and prompted people to reevaluate their work–life balances.

Online payroll services allow you to automate your payroll and simplify tax filings. But with so many payroll providers to choose from, it’s hard to know which vendor is the right choice for your business. That’s why we researched more than 70 top payroll companies to identify the best providers. An outsourced payroll company is dedicated to keeping up-to-date with payroll laws and best practices, which can be a lot to keep up with for a small business. Outsourcing payroll services can give you peace of mind, because you know it will be done right.

Interim Emergency Payroll Support

This will enable you to save time, focus on your core business, and prevent overhead expenses in hiring additional employees and in purchasing software for your payroll process. In 2002, the financial giant signed a 10-year contract worth $700 million with a human resources outsourcing company. Some of the known services included in this deal were the payroll, employee data, staffing, records management, and information systems and support of Prudential’s employees. Payroll software is best for companies with an employee who will manage payroll and HR in-house.

• Most people know that CPAs are known for helping people prepare and file taxes.
• With so many options available, you may question how to choose the right payroll service.
• It also includes managing information relevant to the tax process such as health insurance and workers’ compensation claims.
• Service Level Agreements (SLAs) with service providers are advisable across all business functions, and especially so with payroll outsourcing providers.

Paycor can also send you notification alerts when it notices a potential red flag to ensure you don’t pay an employee an incorrect amount or you have to pay an unexpected fee or penalty. 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. Also, you can submit your payroll information via phone, fax or online at the Deluxe payroll website. For a complete payroll and HR Suite, you can also upgrade to the Full-Service Payroll option too.

Employee Management

Outsourcing payroll stands to greatly reduce a major administrative distraction for most companies, allowing them to “cut the fat” from their employee rosters and keep their organizations focused on other tasks. In many cases, companies outsource payroll because they’ve determined it to be more cost-effective than managing payroll in-house. This has historically been one of the main incentives for any kind of outsourcing, and payroll functions are no exception. In the early days of strategic outsourcing, companies were most comfortable hiring away low-skill tasks distant from sensitive business areas. Nowadays, many companies do the opposite and outsource critical functions such as customer service and money-management tasks. This has grown to include many activities normally performed by administrators or human resources departments—including payroll duties.

• 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.
• Most payroll service providers stay up to date with the latest technology because it allows them to take their service to the next level and provide the best for their clients.
• Payroll outsourcing companies and PEOs (Professional Employer Organizations) are similar, but not exactly the same thing.

We can seamlessly scale based on the evolving needs of your organization. Finally, you should look into what kind of customer service the company provides. How is the payroll provider rated by the Better Business Bureau, and how many customer complaints are there? Is there phone, email and chat support, or are you limited to just one of those options? The answers to these questions should further narrow down your prospects. Most online payroll services charge a monthly base fee of $30 to $150 per month, plus per-employee fees of $5 to $15 per month.

Payroll Outsourcing Benefits

Too many business owners take a large portion of their time running payroll. This is an unscalable practice for the business, and how to create a statement of stockholders’ equity outsourcing payroll can save entrepreneurs time. Technology has a key role to play in managing outsourced payroll operations.

Software provides some automation, from payroll processing to filing payroll taxes, but requires review and approval from a company representative. Payroll outsourcing saves time during global expansion by removing the requirement for local entities or local payroll providers in each country. Outsourcing payroll gives companies country-specific payroll support and the option for payment automation.

Is Payroll Outsourcing Still Effective?

If this knowledge is already inherent to your team, then allow your business to grow before outsourcing. However, if payroll knowledge is not already on your staff, outsourcing could be a good idea. Businesses as small as 1 or 2 employees can outsource their payroll to ensure compliance and save time. There is no set time to outsource payroll, but setting up conversations with these companies can help you understand if the timing is right. Is outsourcing payroll an emerging trend for small businesses and entrepreneurs?

Payroll mistakes and delays can also dilute their trust and positive perception of your organization and lead them to question your financial status and management capabilities. BPO companies often promote themselves to be the best in the industry to attract prospective customers, yet everything boils down to their depth of expertise. Review their metrics — call duration, capacity to handle calls, customer satisfaction (CSAT) scores — to gauge their performance. Regus is a multinational company headquartered in Luxembourg concerned in providing office spaces, meeting rooms, virtual offices, video teleconferences services, business lounges, and co-working spaces.