Using payroll outsourcing companies can save you time and money so you can focus on growing your business.
After all, pay periods typically come every two weeks!
Whether you process payroll yourself in your spare time or you want to simplify your assistant’s workload, automating your payroll can be one of the wisest business moves you make this year.
Continue reading to find the best payroll company for your situation.
Our Top Picks:
Top Payroll Companies
There are many different payroll companies to choose from, you might try to give these service providers a try first.
- Offers tiered services
- Competitive products
- As low as $19 a month plus $6 per employee
- 529 and 401k options
Gusto is a payroll provider that’s building an online presence that maybe you haven’t heard of yet. You can use one of their standalone plans as low as $45/month, or you can add their free app to your FreshBooks account.
You can also integrate Gusto with your Quickbooks or Xero account too.
The three Gusto payroll processing plans offer basic to extensive HR services:
All of the Gusto plans are competitively priced and can be more affordable than some of the other payroll services for future services.
In some cases, Gusto includes several benefits administration features in their basic Core plan that other outsourcing companies only begin to offer in their mid-tier plan.
Why you will probably be fine with the Core plan:
- New hires can e-sign I-9s and W-4s
- Automatically pay state and federal unemployment insurance
- Wage garnishments
- Paid-time-off tracking
- Health benefits administration (ACA, HIPAA, and ERISA compliance)
- Workers’ Comp administration
You will need to consider upgrading to either the Complete or Concierge plan if you need the following services:
- Online offer letters
- Customized employee documents
- Manage paid-time-off requests and approvals
- Employee directory
- Certified HR Pros
If you enroll in Gusto’s Concierge plan, you can access their HR benefits which let you quickly administer and track any employee training, creating employee handbooks and HR guidebooks, plus a dedicated Gusto support team.
- Full service plans
- Video tutorials
- Offers HR, talent acquisition and benefits management
- Basic packages don’t include HR benefits
ADP is probably the largest payroll outsourcing company in the United States. Although they tend to be more expensive than some of the other options, ADP has a solid reputation and high customer service ratings.
You can select from one of the following ADP plans:
- Essential Payroll
- Enhanced Payroll
- Complete Payroll + HR
ADP’s basic Essential Payroll plan is sufficient when you only need to submit direct deposit payments for 1099 contractors or W-2 employees.
Another neat feature is that you can compare your current HR practices to the industry-leading HR standards for free too.
When you need to collect state unemployment insurance or wage garnishments, you need to use their Enhanced Payroll plan. You also need this mid-tier plan to write paper checks or offer prepaid payment cards too.
ADP offers several HR solutions:
- Post job opening to over 100 online boards using ZipRecruiter
- Background checks
- New hire onboarding
- HR forms, training, and compliance database
- Services for 1 to 1,000
- Best for larger business
- Offers free podcasts and training videos
Paychex is one of the largest outsourcing companies as they are responsible for the payroll services for 8% of U.S. private-sector workers.
Choose the corresponding platform based on your current company size:
- 1 to 9 employees
- 10 to 49 employees
- 50 to 1,000+ employees
For small businesses with nine or fewer employees, the two most popular options are the Express Payroll and Paychex Flex Select.
With Express Payroll, you can enjoy the following perks:
- Direct Deposit
- Payroll tax administration
- New hire reporting
- 24/7 phone and chat support
- Free mobile app
Paychex will automatically calculate, pay, and file the appropriate local, state, and federal taxes for each employee.
When you hire a new employee or contractor, Paychex also automatically reports all new hires to the appropriate state registry to spare you a headache too.
Upgrading to the Flex Select plan gives you access to a full-time payroll specialist and you also have the capability to print paper checks and print labor compliance posters too.
Regarding perks for your employees, they can easily access their payment history on the Paychex website.
And, they can access the Paychex financial wellness program which provides several financial tools to help them improve their financial well-being.
4. Intuit Quickbooks
- Offers full service payroll
- Products for self employed to larger businesses
- Get started with 50% off
If you already track your business transactions on Intuit Quickbooks, a natural next step can be using their Enhanced Payroll or Full Service Payroll option. This option is available with any of their three small business plans:
- Simple Start
With Quickbooks Enhanced Payroll, you can enter the number of hours, overtime, and deductions for up to 50 employees and contractors.
You have access to free 24/7 direct deposit and QuickBooks will calculate the W-2 tax forms for you.
Quickbooks also calculates and pays any payroll taxes. Plus, you have access to a live payroll expert anytime you need help too.
For a complete HR Suite, you can also upgrade to the Full-Service Payroll option too.
Some of the additional benefits include:
- Same-day direct deposit
- Experts help you set up your payroll, file, and pay your taxes for you
- New hire forms
- No-penalty guarantee
One of the coolest reasons to consider the full-service payroll is the no-penalty guarantee. If you get hit with a tax penalty or fee because of a Quickbooks miscalculation, they will pay the fee for you!
5. Deluxe Payroll Services
- Best for businesses with less than 1000
- Great customer service
- Reporting options
Deluxe Payroll Services has a long history of providing payroll help to companies everywhere. They serve small businesses, large corporations and everyone in between.
Deluxe’s standard payroll package includes features such as:
- Employee checks
- Payroll register
- Tax filing advice
- Exception reports
And more. They also offer bank reconciliation, payroll debit cards, paper checks and Direct Deposit. In addition, they’ve got a dedicated customer service team for all of your payroll questions and needs.
Also, you can submit your payroll information via phone, fax or online at the Deluxe payroll website.
Visit their website via the link above to find out more information or to get a quote for payroll services.
- Easy set up and onboarding process
- Reporting and HR services
- Easily manage payroll taxes and procedures
Another affordable and extensive payroll solution is OnPay.
For a flat monthly fee of $36 plus $4 per employee, you can enjoy these unlimited benefits:
- Paper checks or prepaid cards at no additional cost
- New employee self-onboarding
- New hire reporting
- Lifetime access for previous employees
- Employees can digitally print W-2 tax documents for free
One of the main reasons why you might use OnPay is that you don’t have to pay extra for printed checks or payment cards.
These two physical payment options are usually an extra charge or only included in upper-level plans for other payroll outsourcing companies.
Direct deposit is the quickest and most convenient, but it’s still nice to have this option when it’s easier to write a check.
You can also use OnPay for 401k contributions and health benefits too. Both of these add-ons cost extra, but it can still be cheaper than going with another payroll outsourcing company when you’re ready to pay either of these employee benefits.
- Small business focus
- Mobile App
- A+ BBB Rating
SurePayroll specializes in offering online payroll solutions for business with up to 10 employees.
You can easily submit payroll using SurePayroll’s following amenities:
- Mobile Payroll App
- Integration with most bookkeeping programs including Intuit Quickbooks
- Federal and State Labor Law Compliance
- Time Clock Integration
Two other reasons to consider SurePayroll include their A+ Better Business Bureau rating and they also have a U.S.-based support team to answer your payroll questions.
Some discount payroll companies cut corners in the support area to offer rock-bottom prices.
With SurePayroll, you can either submit payroll online or with their mobile app. SurePayoll automatically calculates your withholding taxes at the local, state, and national levels automatically.
- Payroll processing and tax filing
- Print check option
- Not all 50 states covered
PayUSA is a payroll service provider offering services for up to 1,000 employees. With direct deposit, your employees have the opportunity to deposit their check into one bank account or several bank accounts at the same time.
If you prefer paper checks, PayUSA also offers check stuffing services and will automatically print your signature on each check.
Like other online payroll companies, you can use PayUSA for the following services:
- New Hire Reporting
- ACA Compliance
- Workers’ Compensation
- Tax Reporting
You might like PayUSA because of its customized payroll services that you might not get from other online-based payroll services.
- HR and benefits tracking
- Easy user interface
- Full service payroll solution
iSolved offers basic to full-service payroll solutions. You can also track employee time and attendance, plus iSolved also offers multiple portals for the following company positions:
- Insurance brokers or agents
With role-based access controls, you can easily make sure that each department gets the necessary payroll information they need to make sure your employee needs are addressed.
And, you’re not overwhelming a particular department by giving them too much information or responsibility at once.
For a full-service suite of payroll and HR benefits, you might enjoy iSolved.
- Send daily reminders feature
- Quarterly tax reports
- Great customer service
You can use Paycor for the following business services:
- HR Support
- Tax Services
The payroll system is clean and efficient. It’s easy to monitor your business goals with the progress bars and you can also General Ledger files to make accounting easy.
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 deposit is the standard payment method, but you can also offer paper checks or prepaid cards as an additional service to your employees.
Paycor also integrates with every 401k plan and health benefits administration too.
In addition to using Paycor to automatically calculate employee tax withholdings and deductions, you can also use the Paycor tax software to pay your own payroll taxes.
And, the payroll tax services also help you claim tax credits that can minimize your business tax liability.
Here are some of the most frequently asked questions.
Payroll outsourcing is a common practice by most small business owners. It’s more cost-effective to use a third-party payroll program to pay independent contractors and employees than paying a full-time payroll professional or on-site human resources manager.
Payroll outsourcing companies and PEOs (Professional Employer Organizations) are similar, but not exactly the same thing. Most outsourcing companies offer PEO services like HR services and benefits for W-2 employees.
If you need a PEO service, Paychex is one of your best options for full-circle payroll and HR benefits.
Payroll outsourcing companies also offer the following conveniences that make paying the bills stress-free:
• Direct Deposit and Pay Stubs
• Automatic withholding for payroll taxes and employee benefits
• Year-End W-2s for employees and independent contractors
• Customized payroll reports
• HR services including new hire onboarding paperwork
There are several payroll companies you can use, but you should only consider companies that share these traits:
• Licensed to handle tax withholdings and payments for all 50 states and U.S. territories
• 24/7 Direct Deposit (and mailed checks or prepaid cards if you offer physical payment too)
• Transparent fee structure
• Mobile payroll capability (so you can schedule payments when you travel)
• Certified CFP expert payroll support
• Support with tax fees and penalties
• Ability to offer healthcare and 401k benefits
Yes! Maybe you currently pay your independent contractors with a paper check or PayPal. If your business has grown so that you need a full-fledged payroll platform, you can pay your independent contractors via direct deposit.
Just like you file your taxes with an accountant to enjoy additional support if you’re audited by the IRS, many payroll outsourcing companies offer a tax protection guarantee too.
Related Post: Best Accounting Software for Businesses
Small businesses say that the payroll function can be one of the most time-consuming administrative tasks.
To make better use of your time, you can use a company for processing payroll and automatically handle the tax and benefit withholdings too.
Whether you only have independent contractors to pay or staff of W-2 employees, outsourcing payroll is a great decision when you’re spending too much time keeping books instead of growing your business.