Mistakes involving taxes or adherence to regulations can be time-consuming and costly to resolve, so there’s a strong incentive to get everything right the first time. “Leaving it to the pros” can be especially beneficial for large companies with complex and burdensome payroll responsibilities. 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.
In addition, full-service payroll providers that offer flexible pay options and self-service apps can help improve employee satisfaction. Payroll outsourcing certainly has advantages, but no single resource can point a company toward guaranteed success with payroll management. Company leaders should not take a decision about outsourcing payroll lightly but should understand its convenience and financial savings. A solid understanding of payroll outsourcing’s pros and cons, along with accurate net terms information on existing payroll management costs, can offer helpful guidance. Payroll co-sourcing is a type of payroll outsourcing in which a third-party payroll provider and employees of the business share payroll processing responsibilities. That way, a small business is getting the best of both worlds, allowing them to selectively decide what aspects of payroll they do themselves and which they’d rather have done by the experts.
Frequently asked questions about payroll outsourcing
ADP works with employers to determine the right payroll setup for their business, whether it’s a start-up company or an international enterprise. In addition to processing payrolls and freeing up time for you and your staff, ADP stays on top of changing rules and regulations — to help keep you compliant and protect you from potential fines and penalties. Our online payroll services also sync your payroll data with other solutions, like time tracking and benefits. The only types of businesses that identify payroll management as a core function are, well, the payroll outsourcing providers themselves.
- Payroll outsourcing costs generally depend on payroll frequency, total number of employees and the specific services that are being outsourced.
- Most relevant to our discussion here, Rippling offers solutions for both domestic and global payroll, benefits management and PEO services.
- We can handle hiring, engagement, employee issues, payroll, benefits, compensation, talent, compliance and more.
- Your partner should use encrypted systems, follow the strictest data security practices, and comply with all relevant data protection laws (like GDPR in Europe or the CCPA in California).
TriNet: Best for hiring and onboarding
Their experience and expertise are what are trade receivables invaluable, and they will be able to spot and avoid potential problems before they happen. Helpful, reliable customer support can make all the difference when you’re dealing with payroll, especially when time is of the essence. One of the biggest issues for payroll clients is hidden fees and “sneaky” costs. As well as being dishonest, these costs can wreak havoc with your hiring budget. As mentioned, the potential cost savings of outsourcing can be significant — depending on the size of your business and your circumstances.
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. By outsourcing your payroll, you can minimize the number of mistakes — and the headaches that come with them. Global payroll providers use specialist software and are able to automate many processes, creating efficiencies and cost savings that just aren’t possible if you’re running your global payroll manually, in-house. Not having to spend long hours on administrative work affords employers the ability to focus on business growth initiatives, and improved accuracy can prevent costly penalties.
Wickham Tractor: Increasing efficiencies and mitigating risks with ADP TotalSource
Rather than having an in-house team deposit paychecks, calculate tax withholdings, and file your small business taxes, outsourced payroll handles it all behind the scenes. Plus, professional payroll services significantly reduce the chances of errors in your payroll processing. 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 homemade granny cake recipe 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. The process of managing employee payroll is often time-consuming—unless, that is, another company is hired to take care of it instead.
In an effort to accommodate for use cases like these, many providers offer access to benefits packages through their services and help you manage them just like a larger enterprise would. The penultimate entry on the list, OnPay, is a software-only payroll solution, offering only self-service online portals. In other words, if you’re hoping to use a third-party vendor as your de facto HR department, OnPay is not the right pick. Despite this, OnPay’s software is surprisingly robust and makes a solid case for its use, all on its own.
“Our CSM — in fact, the whole Remote team — are clear when they offer guidance. I’m not a native English speaker, and the style of communication is so pleasant. I don’t feel alone in the process.” Instead you and your finance team can focus your energy on the big-picture stuff, such as growing the business, finding new ways to boost revenue, and refining your financial strategies. 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. When you choose ADP, you choose a superior payroll platform built for the way you work.