10 Best Payroll Outsourcing Companies

As a business owner, you may find handling payroll to be a time-consuming and frustrating task. Outsourcing payroll to a service provider is an easy way to lighten your load and make sure your workers are paid accurately and on time.

In this article, we’ll define payroll outsourcing and discuss its benefits. We’ll explore the top payroll outsourcing companies available for entities from small businesses to large corporations. We’ll then dive into the features, pros, cons, and pricing for some of the best payroll solutions.

What is payroll outsourcing?

Payroll outsourcing is hiring an external company to handle all aspects of your company’s payroll functions. This includes calculating employee salaries, withholding employment taxes and deductions, filing business tax returns, managing employee direct deposits, and using payroll software.

The outsourcing company manages the payroll process, allowing you to focus on your core operations.

In addition to basic payroll functions, many payroll outsourcing companies offer various integrations with other business tools and systems, making streamlining processes and syncing financial data easier. These integrations may include accounting software, time-tracking systems, and benefits management platforms.

Understanding the difference between payroll outsourcing and professional employer organizations (PEOs) is important. While both offer payroll management, PEOs provide a more comprehensive set of HR services (human resources) and act as co-employer, sharing responsibilities with the client company.

PEOs typically handle employee benefits administration, workers’ compensation, regulatory compliance assistance, and payroll processing. On the other hand, payroll outsourcing companies focus on payroll functions and may not provide the same level or range of HR solutions as PEOs offer.

Benefits of using payroll outsourcing services

Some benefits of using a payroll outsourcing provider include:

• Time savings. Outsourcing payroll allows you to focus your energy on core business functions rather than spending time running payroll, handling tax filings, or processing payments. This results in improved efficiency and productivity. Full-service payroll companies may even provide direct deposit functionality and mobile apps so employees can check their employee data, like pay stubs.
• Cost savings. Payroll outsourcing is often more cost-effective than maintaining an in-house payroll department. Your business can save on hiring and training costs and expenses related to payroll software and infrastructure.‍
• Access to expertise. Payroll outsourcing companies employ a team of payroll experts with specialized knowledge and training. They’re up to date on tax laws, labor laws, and the latest regulations for both federal and state jurisdictions, so you have peace of mind. For example, while the Fair Labor Standards Act (FLSA) was enacted in 1938, it still sees changes that can impact payroll requirements from year to year. ‍
• Reduced risk. The payroll outsourcing company assumes some risk and is responsible for ensuring accurate and timely paychecks. This can help reduce the likelihood of payroll errors, penalties, and fines associated with payroll mistakes.‍
• Access to the latest technology. Payroll providers typically have the latest payroll processing technology, which streamlines payroll processes and provides additional features, such as integration with other business tools, real-time access to payroll data, and robust payroll reports.‍‍
• Enhanced data security. Payroll outsourcing companies typically invest in state-of-the-art security measures to protect sensitive company and employee data. By entrusting payroll to a reputable provider, you’ll have peace of mind knowing your data is secure and protected from potential breaches or unauthorized access.

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Best payroll outsourcing companies

Trying to decide on the right payroll outsourcing company for your business? Consider our list of the top 10 options.

Payroll service companies:

1. Any Hire (Upwork)
2. ADP
3. Paychex
4. Gusto
5. Intuit QuickBooks Payroll
6. OnPay
7. SurePayroll
8. TriNet
9. Square Payroll
10. ConnectPay

1. Any Hire (Upwork)

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Any Hire streamlines the classification and payment process for your organization’s freelance and contract workforce across various industries, allowing you to focus on growth while handling administrative tasks for you.

Features:

• Classify workers based on Internal Revenue Service (IRS) guidelines and Affordable Care Act (ACA) requirements
• Handle ACA enrollment and administration for eligible employees
• Provide workers with payroll tax withholding and W-2 tax reporting

Pros:

• Simplifies the process of managing freelancers and W-2 employees across different industries and around the world
• Reduces administrative burdens and risks associated with employee benefits and classification
• Helps ensure compliance with global tax and labor regulations
• Can reduce costs compared to traditional staffing agencies

Con:

• No payment protection for Any Hire contracts

‍Pricing: The cost of hiring a worker through Upwork Any Hire is less than what you’d typically pay a staffing agency. It’s $49 per professional per month plus a 3% processing fee for contractors and from $199 per professional per month plus a 3% processing fee for employees.

2. ADP

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ADP is a payroll services provider for over a million companies worldwide, offering comprehensive payroll solutions and tax support backed by solid expertise. They offer a range of packages designed for different business sizes and payroll needs.

‍Features:

• Fast and easy payroll processing, both locally and globally
• Employee and manager self-service through a web portal or mobile app
• 24/7 support from certified, experienced payroll professionals

Pros:

• Highly rated and used by millions of businesses
• Offers various packages tailored to different business sizes and needs
• Simple payroll processing integration with business software, time tracking, HR systems, and enterprise resource planning (ERP) systems

‍Con:

• Smaller businesses may not need all the features offered in the packages

‍Pricing: ADP’s pricing isn’t publicly available. You’ll need to contact the company for a customized quote based on your needs.

3. Paychex

Paychex is a payroll service provider that offers solutions for small businesses, midsize companies, and enterprises for any number of employees. They have award-winning customer support and a user-friendly platform.

Features:

• Online payroll processing in as few as two clicks
• Accurate calculation, filing, and payment of payroll taxes
• Compliance experts monitoring ever-changing laws and regulations
• Multiple pay options, employee self-service, and compliance support

Pros:

• Suitable for businesses of all sizes, from small to enterprise
• U.S.-based customer support available 24/7
• Comprehensive tax services, including an Employee Retention Tax Credit (ERTC) eligibility check and claim service
• Integration with HR tasks and compliance management

‍‍Cons:

• Pricing may not be transparent, requiring a quote for exact costs
• A user reports a difficult onboarding process for new hires

‍Pricing: Paychex doesn’t provide specific pricing information on its website. Instead, it encourages interested businesses to request a quote tailored to their needs.

4. Gusto

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Gusto is a full-service payroll platform that simplifies payroll management with its user-friendly interface and smart features. Designed for businesses of all sizes, the Gusto payroll system has transparent pricing plans and makes processing payroll easy.

Features:

• Automatic payroll tax filings
• Built-in tracking of benefits and time
• Unlimited payrolls with clear pricing and no surprises

Pros:

• Intuitive platform, suitable for businesses of all sizes
• Integration with popular accounting and time-tracking software
• Compliance and accuracy, with auto-calculations for fewer mistakes
• Pay contractors in more than 120 countries
• Employee self-setup and access to pay stubs and W-2s

Cons:

• One user reports not enough flexibility with pay periods, saying they aren’t able to set the dates of the pay period to stay in compliance with state regulations
• Users also report customer service is slow and not always helpful

‍Pricing: Gusto’s pricing plans start at $40 per month (plus $6 monthly per person) with higher rates for add-on features.

5. Intuit QuickBooks Payroll

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Intuit QuickBooks Payroll is a comprehensive payroll service that integrates with the widely used QuickBooks accounting software. It offers automatic tax calculations, filing, payment, HR support, and employee benefits, making it a versatile solution for small business owners and beyond.

Features:

• Tax penalty protection up to $25,000
• Same-day direct deposit
• Time tracking and time sheet approval
• Integration with employee benefits and services

Pros:

• 24/7 comprehensive payroll, tax, and HR support
• Auto taxes and forms calculation, filing, and payment
• Automatic payroll processing saves time and effort
• Competitive employee benefits on a small business budget
• 100% accurate tax calculations guaranteed

‍Cons:

• Limited customization options and limitations on features, depending on your plan (for example, time tracking doesn’t come standard)
• Additional filing fees for employees in other states

‍Pricing: Pricing plans start at $42.50 per month (save 50% for three months) plus $6 per employee per month.

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6. OnPay

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OnPay is a versatile and popular payroll software. The platform streamlines payroll management, tax filings, and HR tasks, enabling organizations to save time and focus on their core mission.

Features:

• Flexible permissions for delegating payroll tasks
• Fast and easy payroll system, usable from any device
• Support for multiple pay rates and overtime calculations

Pros:

• Expert support and detailed resources for payroll, HR, and benefits
• Simple, transparent pricing
• Integrations with leading accounting and time-tracking software
• Automated tax filing

‍Cons:

• One user reports there’s no ability to customize emails that go out to the team once payroll is processed
• No built-in time tracking

‍Pricing: The OnPay pricing plan is $40 per month plus $6 per person.

7. SurePayroll

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SurePayroll is an online payroll service designed to simplify payroll management for small businesses. With its easy setup, extensive reporting capabilities, and various additional benefits, SurePayroll offers a comprehensive payroll management solution.

Features:

• Tax calculation, filing, and deposit (full-service plan)
• Accurate tax liability calculation guarantee
• 100% guarantee on payroll services
• Additional benefits like 401(k), workers’ compensation, health insurance, and pre-employment screening

Pros:

• Easy direct deposit setup
• Mobile payroll management
• Live support via chat, email, or phone
• Mobile app for on-the-go payroll management

‍Cons:

• One user reports customer service is lacking, expressing they were put on hold and rerouted multiple times
• No transparent pricing

‍Pricing: To get a price, you have to enter your information and talk to a sales rep to learn more.

8. TriNet

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TriNet is a comprehensive payroll and HR services solution designed to streamline payroll administration, ensure compliance, and adapt to the changing needs of small and midsize businesses. TriNet offers payroll processing, tax management, and integration with popular accounting systems.

‍Features:

• Payroll processing with direct deposit and debiting
• Electronic W-2 preparation and delivery
• Self-service platform for employees
• Federal, state, and local payroll tax calculation and withholding

Pros:

• User-friendly self-service platform for employees
• Integration with accounting systems like QuickBooks, NetSuite, and Intacct
• Compliance support for regulations and payroll tax requirements

Con:

• Platform is less intuitive than other modern HR systems

‍Pricing: Pricing isn’t publicly available. You’ll need to contact the company for a customized quote based on your needs.

9. Square Payroll

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Square Payroll is a user-friendly payroll service that integrates with Square’s point-of-sale (POS) system, making it a good choice for small businesses and startups. It offers a comprehensive suite of payroll features, including automatic tax filings, time tracking, and support for both employees and contractors.

Features:

• Automatic payroll tax calculations and filings
• Time tracking and attendance management
• Employee self-service portal
• Garnishments and deductions management

Pros:

• Easy integration with Square’s ecosystem
• Supports both hourly and salaried employees
• Handles contractor payments

Cons:

• Limited features compared to some competitors
• May not be suitable for larger businesses with complex payroll needs

‍Pricing: Full-service payroll is $35 per month plus $6 per person paid, while contractor-only payroll is $6 per month per person paid.

10. ConnectPay

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ConnectPay offers a comprehensive payroll solution that caters to businesses of all sizes, with a focus on compliance and accuracy. Their platform provides real-time access to payroll data and integrates with various third-party applications to streamline payroll processes.

Features:

• Automatic tax calculations and filings
• Customizable payroll reports
• Integration with various HR and accounting systems

Pros:

• Only pay for what you need
• Robust compliance management, including Social Security and other tax obligations
• Scalable solution suitable for growing businesses

Con:

• Pricing not be transparent, requiring a quote for exact costs

Pricing: ConnectPay doesn’t publicly disclose pricing. Contact them for a customized quote based on your business needs.

Look to Upwork for payroll processing

We explored the top 10 payroll processing tools, which offer a wide range of features, benefits, and pricing structures to suit different business needs.

Payroll processing can be time-consuming and complex, but these tools can help streamline the process and keep your business compliant with tax regulations.

Not sure what the right payroll company is for you? Consider using Upwork for your payroll processing needs. Upwork offers a flexible solution—whether you want to use Upwork Any Hire or hire a freelance payroll specialist. Upwork’s platform connects businesses with experienced freelancers who can help manage payroll.

‍Upwork Full Time allows clients to contract to hire and takes care of payments on the platform. Businesses have the flexibility to hire employees on a full-time basis while maintaining payroll management on the Upwork platform.

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Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation. Prices are current at the time of writing and may change over time based on each service’s offerings.

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Upwork does not provide tax or legal advice. Each reader and company should take the time needed to adequately analyze the laws that apply to their business endeavor.