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Payroll Outsourcing In 2024: The Ultimate Guide

outsource payroll

Outsource some or all HR tasks and opt for a partner that is an extension of your current HR staff. We can handle hiring, engagement, employee issues, payroll, benefits, compensation, talent, compliance and more. Paychex is yet another top name in payroll software, support and outsourcing. They have solutions for solopreneurs all the way up to enterprise-level organizations.

outsource payroll

Even seasoned HR pros could lose days getting the process right manually. Outsourcing payroll, however, helps organizations ensure their compensation is accurate and compliant without drowning HR. You need comprehensive payroll and HR solutions that empower your people and unlock your teams’ potential. Gain time, money, peace of mind, and expertise across HR, payroll, workplace safety, compliance, and benefits with ADP. Paying international freelancers is more complicated than paying domestic W-2 employees, and not every provider can, well, provide that. So start by clarifying what you need in this category, then build from there.

ADP has over 70 years of payroll experience – with over 20 years of providing managed services to businesses, large and small. Outsourcing your payroll to ADP allows your people to focus on business strategy, vital right now. While our payroll experts pay your people accurately, on time and in compliance with regulations, your HR teams can now respond more quickly to market or environmental challenges as they arise.

How does outsourcing payroll work?

Our last list entry is a bit of a midpoint between software-only providers like OnPay and more full-service providers like the ones mentioned further up. But they also offer extensive support and administrative services to help teams minimize the amount of work required internally to keep HR functions running. Naturally, the quality of payroll outsourcing will vary, but it’s clear many companies still see these third-party payroll managers as more effective than internal capabilities. 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.

outsource payroll

Companies choose to outsource payroll to save time and money, and to prevent payroll errors that could have serious consequences. By choosing ADP Comprehensive Outsourcing Services, we will be your strategic large business outsourcing partner, providing you with a hands-on service approach through a designated team of specialists. Our team can help you make the case for how this solution can help you contain costs and streamline operations, while serving your employees with current technology user experience and support options. Finding a trustworthy third-party provider goes a long way, but a company can’t just pass off any payroll mistakes that arise as the fault of its provider and move on. At the end of the day, the company is still responsible for properly compensating its employees, and problems created or left unresolved by the provider will continue to cost time and money until they’re addressed. The client company also remains liable for tax remittance whether or not it has outsourced this particular payroll function, meaning it’s on the hook for any errors even if it’s not immediately responsible.


A company’s core business functions—whatever it does to generate revenue—are understandably its main priority. Imagine running payroll in just a few clicks — anytime, anywhere, on any device. Your taxes and retirement contributions are calculated and deducted automatically.

  1. For more advanced services, pricing can be a little higher per month—but the long-term savings in time, effort, and accuracy quickly make outsourced payroll cost-effective.
  2. With an in-house payroll manager, a senior line manager may be able to persuade a last-minute change, but a third party would stick to agreed protocols.
  3. And the brand brings significant value to the table in the form of risk mitigation and contractor management.
  4. But they also offer extensive support and administrative services to help teams minimize the amount of work required internally to keep HR functions running.
  5. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates.

This varies depending on your business size and specific needs. Outsourcing your payroll to ADP means experts with over 20 years of managed payroll experience take care of it. You’ll receive a clear view of the cost with no surprises – prices are fixed depending on employee numbers. You can customise the payroll services you outsource, either retaining control of some aspects, or choosing a fully managed service. Your employees’ information is transferred to ADP as your payroll outsourcing provider, including information such as hire dates, job titles and pay rates. ADP then calculates and transfers pay to each employee, accurately and on time, on your behalf.

Large Business

Transaction fees, terms, and conditions apply to the use and reloading of the Card Account. Ask if you can tailor the software to your specific needs and to reflect your company culture of bonuses or multiple sites. Check if there are any additional set-up costs and if pension auto-enrolment is covered. Payroll bureaus tend to be reluctant to reveal their pricing structure, but one or two now offer a flexible contract to avoid any long-term commitment.

Finally, the client shares all relevant information the provider needs to complete the payroll functions it will assume. 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.

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. I do believe in my heart that ADP is the payroll company out there. Let us help you avoid payroll hassles with our premium approach to large business outsourcing. What kind of experience your staff has while working for you can have a major impact on some seemingly unrelated financial outcomes. For example, if turnover is high, you may have additional expenses tied to hiring, onboarding and offboarding staff.

By breaking down the payroll into blocks, you can select which ones to outsource, retain, and ponder further. Renowned investor Barbara Corcoran discusses the findings of a recent Forrester study showing the benefits that Paycom clients experienced. That said, most companies looking to solve their payroll woes have a number of things in common, and we’ve listed many of those core concerns here to help guide your search. Seven payroll weaknesses exposed by COVID-19 and how to fix them. Get expert service from our U.S. based service centers, staffed with our highly-trained specialists.

Outsourcing payroll is when you hand over responsibility for your payroll function to a trusted provider like ADP. Businesses of all sizes have been trusting us with their payroll for over 70 years. Our payroll experts streamline your payroll, paying your people accurately, on time and ensuring compliance obligations are met.

If many hours of work can instead be assumed by third-party employees somewhere with a lower cost of living, the outsourced functions tend to become cheaper to perform. For most of the 20th century, companies strove to own and exercise control over all business functions and assets. Economic theories of the day advocated growth in all reasonable directions to exploit economies of scale. This mindset of vertical integration extended into companies’ internal processes as well. It wasn’t until the late 1980s that many companies, hindered by bloated internal structures, began to see broad strategic value in “hiring away” work once completed in-house.

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