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Top 10 Outsourced Payroll Services Companies in 2024

Looking to outsource payroll? Discover the best outsourced payroll services companies and learn about payroll outsourcing and its key features.
Outsourced payroll services



Have you ever considered outsourced payroll services for your company? Efficient payroll management is crucial for the success of any business, with recent studies showing that 61% of companies outsource some or all of their payroll operations.

Choosing a reputable outsourced payroll company can provide an integrated benefits platform, ensure that deductions are aligned, and benefits programs stay active and properly funded.

The following article will take a close look at how selecting the right payroll service provider can streamline your payroll processes, enhance compliance, and improve overall administrative efficiency with outsourcing.

What Is Payroll Outsourcing?

Payroll outsourcing involves hiring an external service provider or payroll experts to manage and handle various payroll functions for a business. This approach allows companies to delegate the complex and time-consuming tasks associated with payroll processing to experts. This often involves the use of advanced payroll software to ensure efficiency and accuracy, ensuring accuracy and compliance with tax regulations. Here are some key aspects of payroll outsourcing:


Key functions of outsourced payroll

Payroll outsourcing offers a strategic advantage for businesses looking to streamline their remuneration processes and focus on core business operations.

KEY TAKEAWAY: Enhanced efficiency and scalability are the primary benefits of outsourcing payroll. Expert teams and advanced tools streamline payroll processes, ensure compliance, and allow businesses to scale operations efficiently. This enables internal teams to focus on core business objectives.

Key Benefits of Outsourced Payroll Services

Outsourcing payroll services to payroll experts can provide numerous advantages for businesses of all sizes. This allows businesses to streamline their payroll processes, reduce costs, and ensure compliance with complex tax regulations. Here are the key benefits of payroll outsourcing providers:

1. Cost Savings

Outsourcing payroll to a payroll service provider can significantly reduce the costs associated with managing payroll in-house. Businesses can save on expenses related to hiring, training, and maintaining a payroll team, as well as the costs of payroll software and infrastructure. Utilizing advanced payroll software can further streamline processes and reduce administrative overhead. This allows companies to allocate resources more effectively and invest in core business operations.

2. Accuracy and Compliance

Outsourcing payroll ensures that your payroll processes are managed by experts who specialize in accuracy and compliance. Here’s how they can help:

  • Expert Knowledge: Stay up-to-date with the latest tax laws and regulations.
  • Error Reduction: Minimize the risk of payroll errors and incorrect tax filings.
  • Timely Reporting: Ensure all payroll tasks, including tax filing and annual tax reporting on payroll, are handled correctly and on time.
  • Regulatory Compliance: Avoid penalties and ensure compliance with all relevant tax regulations.

3. Time Savings

Managing payroll is a time-consuming task that requires attention to detail and constant monitoring. By hiring a payroll outsourcing provider, businesses can free up valuable time for HR and finance teams, allowing them to focus on strategic initiatives and other critical responsibilities. This improves overall productivity and efficiency within the organization.

4. Enhanced Security

Outsourcing payroll ensures your sensitive employee data is handled with the highest level of security. Here’s how it benefits your business:

  • Advanced Security Measures: Professional providers use cutting-edge security protocols to protect personal and financial data.
  • Confidentiality: Ensure the confidentiality of employee information, reducing the risk of data breaches.
  • Robust Protection: Benefit from security measures that are often more robust than in-house capabilities.
  • Compliance with Data Regulations: Adhere to data protection regulations, safeguarding your business against legal issues.

Outsourced payroll services offer significant benefits, including cost savings, enhanced accuracy, time efficiency, and improved compliance.

Should You Outsource Payroll or Hire an Independent Contractor?

Deciding whether to outsource your payroll to a company or an independent contractor depends on various factors, such as the size of your business, the complexity of your payroll requirements, and your budget.

Outsourcing Payroll to a Provider

Choosing outsourced payroll providers involves selecting external experts to handle your company’s payroll functions. This decision aims to enhance efficiency, ensure compliance with tax regulations, and provide scalable payroll solutions tailored to your business needs. 

Pros and Cons of Choosing a Payroll Company

Pros Cons
Comprehensive Services Higher Costs
Offers a wide range of payroll functions, including tax compliance, employee benefits management, and direct deposits. Typically more expensive than hiring an independent contractor, which may not be cost-effective for smaller businesses.
Advanced Security Measures Less Personalized Service
Utilizes cutting-edge security protocols to protect sensitive employee data and ensure compliance with data regulations. May not provide the same level of personalized service as an independent contractor.
Scalability Potential for Less Flexibility
Can easily scale their services to accommodate your business’s growth and changing payroll needs. Larger payroll companies may be less flexible in adapting to unique business needs or specific requests.

Hiring a Payroll Contractor

Choosing to outsource payroll to a contractor involves hiring an independent professional to manage your company’s payroll functions. This option can provide flexibility and personalized service, often at a lower cost than large payroll providers.

Pros and Cons of Choosing an Independent Payroll Contractor

Pros Cons
Cost-Effective for Small Businesses Limited Services
Generally lower cost than payroll companies, making it a more affordable option for smaller enterprises. May not offer the same comprehensive range of services as a larger payroll company.
Personalized Service Less Advanced Security Measures
Provides tailored services and more personalized attention to meet specific business needs. May lack the advanced security protocols of larger payroll companies, potentially risking data breaches.
Flexibility Scalability Challenges
More adaptable to unique business requirements and specific requests. May struggle to scale services efficiently as the business grows, potentially leading to limitations in handling increased payroll complexity.

What are the Best Companies to Outsource Payroll Services?

When it comes to managing payroll processes or sourcing payroll professionals, these companies stand out for their expertise and reliability. Each offers unique features, strengths, and specializations, making them ideal for various business sizes and needs.

1. 1840 & Company

1840 & Company website screenshot

Naturally, we’d like to place ourselves at the top of the list. With our extensive experience and commitment to excellence, 1840 & Company offers top-tier payroll outsourcing talent that cater to businesses of all sizes.

1840 & Company provides comprehensive payroll outsourcing services, specializing in recruiting top-notch remote contractors with advanced skills. Our solutions are designed to streamline your payroll processes and ensure compliance with all relevant regulations, all while helping you save costs. 

Key Features:

  • Top-Notch Talent Recruitment: Access to highly skilled remote contractors.
  • Cost-Effective Solutions: High-quality services at a fraction of the cost.
  • Scalable Payroll Solutions: Flexible services that grow with your business needs.
  • Advanced Payroll Technology: Use of the latest tools and technology to ensure efficient payroll processing.

2. ADP Payroll Services

ADP website payroll outsourcing screenshot

Renowned for comprehensive payroll practice and HR services, ADP Payroll Services is a trusted name in the industry, offering a wide range of solutions to meet the diverse needs of businesses. Their extensive experience and commitment to excellence make them a reliable choice for companies of all sizes.

Key Features:

ADP handles all aspects of tax filing, ensuring accurate and timely compliance with federal, state, and local regulations. They manage employee compensation, including bonuses and deductions, and administer a variety of employee benefits such as health insurance and retirement plans. Additionally, ADP provides detailed pay stubs for employees, ensuring transparency and clarity in payroll processes.

3. Paychex

Paychex is a trusted payroll provider known for its comprehensive solutions tailored to small and medium-sized businesses. Their user-friendly platform and exceptional customer service make payroll processing simple and efficient.

Key Features:

  • Payroll Tax Reporting: Manages all aspects of payroll tax filing and compliance, ensuring accuracy and timeliness.
  • Payroll Administration: Handles employee pay, deductions, and benefits, streamlining the entire payroll process.
  • Direct Deposits: Offers convenient and secure direct deposit options for employee payments.

4. Gusto

Gusto website screenshot

Gusto has built a strong reputation for its user-friendly payroll and benefits administration platform. Ideal for small to medium-sized businesses, Gusto simplifies payroll management and integrates seamlessly with HR services.

Key Features:

Gusto efficiently manages all employee deductions, ensuring accuracy and compliance. It handles all aspects of tax responsibilities, including filing and payments, to ensure your business meets all legal obligations. Additionally, Gusto offers robust integration with HR services, making it easier to manage employee data, benefits, and payroll in one place.

5. Paycor

Paycor offers comprehensive payroll and HR solutions tailored for growing businesses. Their platform is designed to streamline processing payroll and improve overall efficiency.

Key Features:

  • Payroll Frequency Flexibility: Paycor allows businesses to choose from various payroll frequencies, adapting to the specific needs of your workforce.
  • Employee Satisfaction: By ensuring accurate and timely payroll practice, Paycor helps enhance overall employee satisfaction and morale.

Paycor’s scalable solutions and strong support system make it an excellent choice for businesses looking to optimize their payroll and HR processes. Their advanced technology and commitment to customer service ensure that your payroll operations run smoothly and efficiently.

6. OnPay

OnPay is known for its simplified payroll solutions and strong focus on tax compliance. It’s an excellent choice for small businesses looking for an affordable and reliable payroll service. 

Key Features

OnPay stands out for its affordability and user-friendly interface. Here are three reasons why OnPay might be the perfect payroll solution for your business:

  1. Affordable Pricing: OnPay offers competitive pricing, making it accessible for small businesses and startups.
  2. Ease of Use: The platform is designed to be intuitive and straightforward, reducing the time and effort required to manage payroll.
  3. Reliable Tax Compliance: OnPay’s robust tax compliance features ensure that your business remains in good standing with tax authorities, minimizing the risk of penalties.

7. Trinet

Trinet payroll outsourcing screenshot

Trinet is a comprehensive HR and payroll services provider that excels in integrating payroll with a wide range of HR functions. Known for its robust benefits administration, Zenefits simplifies the management of employee benefits, from health insurance to retirement plans. The platform’s payroll processes are designed to be intuitive and efficient, reducing the likelihood of payroll mistakes and ensuring that employees are paid accurately and on time. 

Zenefits also offers tools to streamline compliance with labor laws and tax regulations as well as payroll taxes, helping businesses avoid costly errors and penalties. By minimizing payroll mistakes and providing a seamless integration with HR services, Zenefits allows businesses to focus on their core operations while ensuring their payroll and benefits administration is handled smoothly and professionally. 

8. Square Payroll

Square Payroll offers streamlined payroll services designed to cater to businesses of all sizes. Whether you are a small business owner or managing a larger enterprise, Square Payroll provides an efficient and reliable payroll solution that simplifies the payroll process.

Key Features:

Square Payroll handles all aspects of payroll taxes, ensuring compliance with federal, state, and local regulations. The service facilitates direct deposits, making it convenient for employees to receive their pay promptly. Additionally, Square Payroll is focused on enhancing the overall employee experience by providing easy access to pay stubs and tax documents through a user-friendly online portal.

9. Justworks

JustWorks website screenshot

Justworks is a PEO that provides full-service payroll and HR solutions. By combining payroll practice with comprehensive HR support, Justworks helps businesses manage their workforce more effectively and efficiently.

Key Features:

  1. Payroll Strategy: Develops and implements effective payroll strategies tailored to your business needs.
  2. Compliance with Tax Regulations: Ensures full compliance with tax regulations, handling all aspects of tax filing and payments to minimize risks and avoid penalties.
  3. Employee Compensation: Manages employee compensation, including salaries, bonuses, and benefits, ensuring accurate and timely payments.

10. SurePayroll

SurePayroll website screenshot

SurePayroll is a payroll service provider that specializes in offering payroll and HR solutions tailored for small to medium-sized businesses. By providing a comprehensive suite of services, SurePayroll helps businesses streamline their payroll processes and effectively manage their workforce, making it an ideal choice for growing companies looking to enhance their HR and payroll functions.

Key Features:

SurePayroll excels in managing a wide range of payroll tasks, ensuring that all aspects of payroll practice are handled with precision and efficiency. From calculating wages and managing employee deductions to handling tax filings and ensuring compliance with regulations, SurePayroll covers all bases. Their advanced payroll system optimization ensures that processing payroll is not only efficient but also scalable. This allows businesses to easily adapt to changes in workforce size and payroll complexity.


Outsourcing payroll services offers numerous benefits, including cost savings, enhanced accuracy, compliance with tax regulations, and improved efficiency. By delegating payroll tasks to expert providers, businesses can focus on their core operations and strategic initiatives, while ensuring their payroll processes are managed seamlessly and effectively.

Choosing a reliable payroll outsourcing provider can make a significant difference in your business operations. At 1840 & Company, we offer global payroll outsourcing solutions as well as sourcing and vetting dedicated payroll experts available for freelance or full-time hire. Schedule a call with us for a free consultation on outsourcing your payroll today.

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