The 10 Best Payroll Outsourcing Companies (2025)

Are you tired of spending countless hours managing your company’s payroll? You’re not alone. Many business owners find themselves drowning in payroll tasks instead of focusing on growing their business. Thankfully, there are plenty of payroll outsourcing companies coming to the rescue.

Did you know that 73% of businesses outsource payroll to improve compliance and reduce operational costs? It’s true—managing payroll in-house isn’t only time-consuming but also complex and risky in today’s ever-changing tax landscape.

Outsourcing payroll services can transform your business operations by streamlining your payroll process, minimizing costly errors, and freeing up valuable time for core business activities. But with so many payroll providers available, how do you find the perfect payroll partner for your unique needs?

Today, we’ll explore the top 10 payroll outsourcing companies for U.S. businesses and help you make an informed decision about outsourcing your payroll.

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Top 10 Payroll Outsourcing Companies for U.S. Businesses

Below, we’ve compiled a list of the top 10 outsourced payroll companies that offer reliable, scalable, and compliant payroll solutions for U.S. businesses.

NOTE: The average company ratings included are based on publicly available data from major employers and review platforms such as Glassdoor, Indeed, G2, and Trustpilot.

Each provider has distinct features, pricing models, and specialties—whether you need payroll for a small startup, a mid-sized company, or a large enterprise with multi-state operations. Let’s dive into each of them a bit more.

1. 1840 & Company

Best For: Businesses looking to hire dedicated remote payroll specialists at a lower cost with flexible, scalable options.

1840 & Company takes a unique approach to outsourced payroll by helping businesses source, vet, and onboard highly skilled remote payroll specialists. Instead of paying premium rates for traditional payroll service providers, you can leverage top-tier talent at a fraction of the cost.

Their remote payroll experts ensure seamless payroll operations, tax compliance, and benefits administration while integrating smoothly into your existing operations. Whether you need a single payroll specialist or an entire payroll team, 1840 & Company provides pre-vetted professionals who comply with U.S. tax and labor laws.

Standout features:

• Access to pre-vetted remote payroll professionals
• Full compliance with U.S. payroll laws
• Ideal for contractor-based payroll outsourcing
• Scalable for startups to enterprises
• Global talent network for extended reach

Average Rating: 4.8/5

2. ADP

Best For: Large enterprises and growing companies that need a reliable, global payroll outsourcing partner with advanced technology.

When it comes to payroll processing, ADP is an industry giant trusted by businesses of all sizes. Their comprehensive payroll and HR solutions offer unmatched scalability, compliance expertise, and automation capabilities to streamline payroll operations.

ADP’s payroll services cover everything from automated wage calculations and direct deposits to tax filings and benefits administration, ensuring your business stays compliant with federal, state, and local regulations. Their platform seamlessly integrates with HR, time tracking, and accounting software, providing a unified experience with employee self-service tools and robust analytics.

Standout features:

• Comprehensive payroll and HR services
• Global coverage and multi-state support
• Cloud-based payroll software with automation
• Integrated time tracking and benefits management
• Robust compliance tools and analytics

Average Rating: 4.5/5

3. Paychex

Best for: Small and mid-sized businesses that need straightforward payroll management with strong compliance support.

Paychex has built a strong reputation as a trusted outsourced payroll provider specializing in solutions for small and mid-sized businesses. Their user-friendly platform, combined with expert customer support, makes running payroll a breeze for business owners.

Their payroll services encompass everything from processing payroll and tax filings to benefits administration and compliance management, ensuring accuracy and efficiency at every step. Paychex excels in annual payroll tax reporting and provides tools to help your business comply with ever-changing federal, state, and local regulations.

Standout features:

• Real-time payroll and tax filing
• Dedicated account support and online tools
• Scalable platform for growing teams
• Benefits and retirement plan administration
• Integrated HR and accounting software

Average Rating: 4.3/5

4. Gusto

Best For: Startups and small businesses seeking an all-in-one solution that combines payroll, HR, and benefits.

Gusto has quickly become a favorite among small business owners looking for a modern, intuitive payroll solution. Their platform automates payroll operations, tax filings, and employee deductions while ensuring compliance with payroll taxes and regulations at all levels.

What sets Gusto apart is its built-in benefits administration, allowing businesses to manage health insurance, retirement plans, and workers’ compensation alongside payroll. With an exceptionally user-friendly interface and strong customer support, Gusto makes payroll management painless for growing companies.

Standout features:

• Automated payroll and employee onboarding
• Built-in benefits administration tools
• Easy-to-use employee self-service portal
• Seamless integrations with accounting software
• Strong customer support and a modern interface

Average Rating: 4.6/5

5. Paycor

Best For: Mid-sized companies looking for a data-driven, customizable payroll system with strong reporting features.

Paycor offers comprehensive payroll and HR solutions designed to enhance operational efficiency and workforce management. Their flexible payroll processing allows businesses to customize pay schedules and workflows while ensuring compliance with complex federal, state, and local tax regulations.

With advanced reporting capabilities, automation tools, and strong customer support, Paycor makes payroll management more efficient and scalable as your business grows. Their focus on mid-sized and growing businesses makes them a solid choice for companies seeking reliable, technology-driven payroll solutions.

Standout features:

• Custom payroll workflows and dashboards
• Multi-state compliance and payroll tax automation
• HR and time-tracking integrations
• Advanced analytics for workforce insights
• Scalable to fit growing operational complexity

Average Rating: 4.4/5

6. OnPay

Best For: Small business owners and startups looking for a cost-effective, no-frills payroll platform with transparent pricing.

If you’re a small business owner seeking affordable, straightforward payroll management, OnPay delivers exceptional value. Their platform automates various tasks and benefits deductions while ensuring compliance with IRS and state regulations.

OnPay’s transparent pricing model and robust tax compliance tools help businesses avoid payroll mistakes and penalties while keeping payroll operations simple and efficient. With a user-friendly interface and no hidden fees, OnPay is perfect for companies seeking reliable payroll without breaking the bank.

Standout features:

• Flat-rate pricing with no hidden fees
• Automated payroll and tax filings
• Supports contractors and W-2 employees
• Benefits management and workers’ comp integration
• Clean interface for simplified payroll administration

Average Rating: 4.7/5

7. TriNet

Best For: Small to mid-sized businesses in need of fully outsourced HR and payroll services, especially in regulated industries.

TriNet stands out as a full-service HR and payroll outsourcing provider, best known for its Professional Employer Organization (PEO) services tailored to small and mid-sized businesses. Their comprehensive platform handles automated payroll processing, benefits administration, and compliance support.

With industry-specific payroll expertise, integrated HR tools, and risk management solutions, TriNet is an excellent choice for companies seeking a hands-off approach to payroll and HR management. Their services ensure your business stays aligned with complex employment laws and tax regulations.

Standout features:

• Full-service PEO model with compliance support
• Industry-specific payroll expertise
• Benefits, risk, and performance management tools
• Global and domestic payroll support
• Scalable HR and outsourced payroll services

Average Rating: 4.2/5

8. Square Payroll

Best for: Small businesses and retail/service-based companies using Square POS looking for simple, integrated payroll solutions.

Square Payroll offers simple, automated payroll solutions that integrate seamlessly with Square’s point-of-sale (POS) system. This makes it an excellent choice for small businesses, retail shops, and service-based industries looking to streamline their operations.

The platform allows business owners to track employee hours, automate tax filings, and process direct deposits with minimal effort. Square Payroll ensures full compliance with federal, state, and local tax regulations, making payroll management efficient and hassle-free.

Standout features:

• Seamless integration with the Square POS system
• Automatic tax filings and direct deposit
• Employee time tracking via POS
• Simple interface and mobile app
• Affordable pricing for small teams

Average Rating: 4.5/5

9. Justworks

Best For: Growing businesses that want a streamlined PEO solution for payroll, benefits, and HR compliance.

Justworks is a Professional Employer Organization (PEO) that provides full-service payroll and HR solutions for growing businesses. Their all-in-one platform handles everything from payroll processing and benefits administration to compliance support and tax filings.

What sets Justworks apart is its dedicated HR support and access to enterprise-level benefits typically unavailable to smaller companies. Their transparent pricing and user-friendly interface make them a strong contender for businesses looking to simplify payroll while enhancing the employee experience.

Standout features:

• Full-service payroll and tax compliance
• Enterprise-level health benefits for small teams
• Integrated HR tools and employee support
• 24/7 customer service
• Simplified onboarding and automated payments

Average Rating: 4.5/5

10. SurePayroll

Best for: Freelancers, solopreneurs, and small teams looking for a simple, cloud-based payroll system.

SurePayroll offers affordable, cloud-based payroll services with built-in tax compliance features that make it perfect for startups, freelancers, and small businesses. Their platform automates payroll calculations, direct deposits, and tax filings, reducing the administrative burden on business owners.

With features like self-service employee portals, benefits administration options, and 24/7 customer support, SurePayroll delivers a reliable, cost-effective solution for companies with straightforward payroll needs.

Standout features:

• Affordable payroll with automated calculations
• Tax filing and year-end W-2/1099 generation
• Employee self-service portals
• 24/7 support and mobile payroll access
• Simple integration with accounting tools

Average Rating: 4.3/5

Payroll Outsourcing: Essential Information

Below, we’ll cover all of the necessary information about outsourced payroll. Keep reading for a deep dive.

What Is Payroll Outsourcing?

When you outsource your payroll, you’re essentially hiring a third-party provider to manage critical payroll functions like wage calculations, tax withholdings, direct deposits, and labor law compliance.

One key advantage is direct deposit capability, which allows for quick and efficient fund distribution to your employees. By delegating these complex tasks to specialized payroll companies, you can ensure accuracy and compliance with ever-changing regulations.

For U.S. businesses, outsourced payroll significantly reduces compliance risks and administrative burdens while improving overall payroll operations. With constantly changing tax rates and regulations, the potential for costly payroll errors is high. Partnering with a trusted payroll service provider helps you avoid penalties, save time, and focus on strategic growth.

Whether your company has 10 or 10,000 employees, outsourcing payroll can enhance efficiency and simplify operations, benefiting both your business and your employees.

READ MORE: The Complete Guide to Payroll Outsourcing Costs

When Should a Business Outsource Payroll?

Is it time to outsource your payroll? The clearest sign is when in-house payroll management becomes too time-consuming, error-prone, or costly—typically as your business scales or expands into multiple states.

Alarming fact: IRS data shows one-third of small businesses face penalties for payroll errors, averaging $845 annually in fines.

Consider outsourcing payroll when:

• Time consumption becomes excessive –. If payroll distracts your HR team from strategic work, outsourcing can reclaim that valuable time.
• Tax compliance becomes risky – Complex IRS regulations make payroll tax errors costly. Professional payroll providers ensure compliance with all tax laws.
• Employee turnover is high – Industries with frequent staff changes require constant payroll adjustments, making outsourcing particularly efficient.
• Geographic expansion occurs – When operating across multiple states or countries, outsourcing helps navigate varied payroll regulations without building location-specific expertise.
• Cost-effectiveness is needed – Outsourcing gives you access to payroll experts at a fraction of maintaining an in-house payroll team.

Outsourcing at the right time helps businesses minimize risks while focusing on what truly matters—growth and profitability.

What to Look for in an Outsourced Payroll Service Provider

Selecting the right payroll provider goes beyond basic paycheck processing. Your ideal partner should handle critical payroll functions while integrating with your operations and scaling your business.

Consider these six essential factors:

1. Compliance & Security

Choose providers with automated tax calculations and solid compliance records with the IRS and Department of Labor. Verify they have strong security certifications (SOC 2, ISO 27001) to protect sensitive employee data and ensure accurate payroll tax management.

2. Scalability

Your provider should grow with your business, handling multi-state and international payroll if needed. They must accommodate both W-2 employees and 1099 contractors while offering customizable features that adapt to your changing business requirements.

3. Technology & Integration

Look for providers with AI-driven automation and cloud platforms that streamline payroll processes. Ensure they integrate with your accounting tools, HR software, and time-tracking systems. Employee self-service portals for accessing pay stubs and tax documents are essential.

4. Customer Support

The best providers offer dedicated account managers or 24/7 support teams who understand state-specific labor laws. Multiple support channels (chat, phone, email) ensure you can quickly resolve urgent payroll issues.

5. Transparent Pricing

Compare pricing models carefully—some charge flat rates while others bill per employee. Watch for hidden fees on tax filings, W-2 processing, or direct deposits that can significantly increase your payroll cost. Seek flexible terms that align with your budget and business needs.

6. Industry Expertise

For regulated industries like healthcare or finance, choose providers with sector-specific experience. Check client reviews and case studies to verify they can meet your industry’s unique compliance requirements.

READ MORE: Advantages of Outsourcing Payroll Services for Small Businesses

Payroll Outsourcing: Provider vs. Contractor – Which Is Right for Your Business?

When outsourcing payroll, businesses typically choose between hiring a payroll service provider or working with an independent payroll specialist (contractor). Each option has advantages, depending on your company’s size, needs, and budget. Below, we break down the key differences to help you decide which approach is best for your business.

Payroll Provider vs. Contractor: Key Differences

Which Option Is Best for Your Business?

Choose a payroll provider if you want a fully managed, automated payroll system that ensures compliance and handles tax filings, direct deposits, and benefits administration. This is ideal for businesses with complex payroll needs, multiple locations, or a growing workforce.

Hire a payroll contractor if you need a dedicated specialist who can provide personalized payroll at a lower cost while maintaining control over your payroll system. This is an excellent option for businesses looking for flexibility, cost savings, and hands-on payroll support without committing to a full-service provider.

For companies looking to hire pre-vetted payroll specialists, 1840 & Company can help source, vet, and onboard top-tier remote payroll professionals, providing a cost-effective alternative to traditional payroll outsourcing.

FAQs About the Top Payroll Outsourcing Companies

Before closing out this roundup list, let’s have a look at some of the most frequently asked questions about outsourced payroll services.

How Much Does Payroll Outsourcing Cost?

Payroll outsourcing typically costs between $30 and $200 per month, plus $4 to $12 per employee. Prices vary based on provider, features, payroll frequency, and service level, with contractors offering more flexibility and cost-effective options for smaller businesses.

What Are the Disadvantages of Outsourcing Payroll?

Outsourcing payroll can lead to data security risks, lack of control over processes, communication challenges, hidden costs, potential errors, and reliance on third-party providers, which may result in delayed or inaccurate payments.

What Is the Largest Payroll Company?

Automatic Data Processing (ADP) is the world’s largest payroll company, processing payroll for approximately one in six U.S. workers and serving over 920,000 clients globally.

Final Thoughts

Outsourcing payroll can be a game-changing strategy for businesses looking to save time, reduce compliance risks, and improve payroll accuracy. Whether you choose a full-service payroll provider or hire a dedicated payroll specialist, the right solution depends on your company’s size, complexity, and budget.

The top payroll outsourcing companies featured in this article offer services tailored to different business needs—from automated payroll processing and tax compliance to scalable workforce solutions. By carefully evaluating features like compliance support, technology integration, and pricing transparency, businesses can select a provider that aligns with their long-term goals.

If you’re looking for a cost-effective way to optimize payroll operations, we can help. Schedule a call today to find the right payroll expert for your team!

READ NEXT: Outsourcing Accounting for Small Businesses

Jay Douglas Marketing Director

Jay Douglas is a seasoned digital marketer, entrepreneur, and outsourcing expert with over 15 years of experience driving growth for brands in competitive markets. As the Marketing Director at 1840 & Company, he leads global marketing strategies for a rapidly growing BPO and staff augmentation provider. Beyond his marketing expertise, Jay has firsthand experience in hiring freelancers and building remote teams, having founded and scaled several startups. His deep understanding of outsourcing and talent acquisition enables him to help businesses optimize their operations through innovative, cost-effective solutions.

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