This expertise provides businesses with confidence that payroll tasks are completed accurately, on time, and in full compliance with current regulations and tax requirements. Wondering whether the benefits of outsourcing payroll services could help your company? The cost of outsourcing payroll can vary widely based on the provider’s location, the service package, your payroll frequency, and the size of your business. As one of the top names in business services, ADP provides HR and payroll outsourcing to businesses of all sizes. Outsourced providers stay current with anything affecting payroll and help ensure businesses comply with relevant tax and employment legislation, reducing the risk of costly legal issues or fines.

Global Payroll Pricing

ADP, founded in 1949, is a trusted global payroll solution particularly designed for large enterprises. It also provides a suite of HR and workforce management solutions, including benefits administration, time tracking, and talent management. As part of the VAT IT Group, Playroll draws on over 25 years of experience in global employment services, prioritizing in-house legal expertise. GP Manager consolidates global payroll processes along with advanced analytics features, to give you more oversight of global payroll processes.

Professional payroll providers are obligated to track changes in rules, regulations, and tax rates for all geographic locations. They can also provide specialized tools that enable businesses and employees to have 24/7 visibility into payroll calculations. For small- to mid-sized businesses, outsourcing payroll is often the most efficient way to manage critical tasks without overloading in-house staff.

Take Your Time

• There are many payroll outsourcing solutions designed specifically for businesses of all sizes.
• Other fees may be for additional services, such as setting up employee benefits or generating reports.
• Specialists take over wage reporting, tax filing, and regulatory updates, saving time while lowering risk and keeping operations on track.

For a better employee experience overall, you need a provider that manages more than just payroll — ideally in a single software. Here are a few tips for outsourcing payroll with confidence. That’s why it’s not unheard of for a company employee — like a dedicated HR pro — to verify the outsourcer’s work before payroll runs. If you outsource all your HR functions, they’ll likely be performed by employees of your tech provider. Let us show you how Paychex Flex® simplifies payroll, taxes, and reporting in one intuitive platform so you can get back to running your business. Other fees may be for additional services, such as setting up employee benefits or generating reports.

Exactly what services will be provided?

Paylocity is known for its flexibility, offering a comprehensive outsourced payroll service ideal for mid-market businesses. The platform’s Employer of Record (EOR) services enable seamless payroll processing for both international employees and contractors in over 180 countries. We considered the availability of responsive customer support, training resources, and ongoing assistance to ensure businesses can rely on their chosen payroll provider. Outsourcing global payroll not only saves businesses time but also ensures compliance with legal requirements. We recommend checking out our 2025 guides for the best cheap payroll services, best payroll services for small businesses and best PEO services.

But cross-border payroll support isn’t a given. For many businesses, it’s a smart way to reduce admin, avoid errors, and stay compliant with tax and labor laws. Payroll tax management is crucial to a business’s compliance.

Take your time selecting the best outsourcing provider

Payroll errors can be frustrating and costly to both employers and employees. Business owners or designated administrators must calculate amounts and complete a quarterly payroll tax form to show that the proper amount of payroll tax has been withheld. Even after the payroll figures are organized and recorded, additional payroll tax responsibilities remain each quarter and at the end of each fiscal year.

Best Staffing and Recruitment Firms for Hiring Bookkeepers in Latin America

For employees, a mistake in state tax deductions can result in an unexpectedly sizable tax deduction from their final paycheck of the year, typically coinciding with the holidays. Payroll figures are also necessary for tax purposes, including both business year-end income tax filing and quarterly and annual payroll tax reporting. Multiply each of these calculations by the number of employees in your business, and it’s easy to see why calculations alone can take a sizable chunk of time out of your week. Once a business has hired its first employee, payroll responsibilities will continue every pay period as long as the business is in operation.

What factors should I consider when outsourcing payroll?

For many small and medium-sized enterprises (SMEs), payroll is a complex task that requires expertise, attention to detail, and a thorough understanding of tax codes and labor regulations. Here are our top picks for international payroll providers. Outsourcing payroll can free up time, but supporting teams across borders takes more than basic processing. Set benchmarks early and revisit them regularly to assess whether your provider is delivering on cost, compliance, and performance over time. The right payroll partner brings that expertise, helping you stay ahead of regulations and support your team wherever they are. Managing employee compensation in-house pulls finance, HR, and operations teams into time-consuming tasks like paycheck processing, tax filing, and generating reports.

• These providers also have a deep understanding of tax regulations, reducing the chances of compliance-related errors.
• Paychex grows with your business — scalable payroll solutions that evolve as you do.
• Easy contractor-to-full-time conversions.
• By outsourcing payroll to a reputable provider, owners may have more time to focus on what matters most.
• A solid reputation indicates a track record of delivering consistent, high-quality payroll services.

Forbes Advisor’s latest guide takes you through the ins and outs of how payroll outsourcing works and how your company can best evaluate a possible outsourcing strategy. The process of managing employee payroll is often time-consuming—unless, that is, another company is hired to take care of it instead. They also found that the likelihood of getting a payroll tax penalty was reduced by 4.3% when outsourcing.

Small and medium-sized businesses may not have the budget to invest in the latest payroll technology closing entries or the resources to keep it up-to-date. These providers are also subject to industry regulations and standards for data protection, which ensures that their security practices are up-to-date and reliable. When payroll is managed internally, businesses may lack the resources to implement the most advanced security measures, leaving them vulnerable to breaches. Outsourcing payroll allows businesses to easily scale their operations without having to worry about adding payroll staff, upgrading systems, or managing the increased complexity of payroll tasks. For businesses that are expanding rapidly or those with fluctuating staff sizes, scaling payroll operations in-house can become difficult and resource-intensive. A miscalculation in taxes can lead to penalties from tax authorities, while incorrect paychecks can result in disgruntled employees or even legal action.

Offer health, dental, vision and more to recruit & retain employees. Specialists take over wage reporting, tax filing, and regulatory updates, saving time while lowering risk and keeping operations on track. But it also eats up time, requires careful attention, and means staying on top of ever-changing tax and labor laws. These contributions are further impacted by an employee’s status (single vs. married, dependents vs. none, part-time vs. full-time, etc.) as well as their salary level. This expertise ensures that detailed requirements are handled correctly, saving time and reducing risk for business owners.

If you are looking to outsource Paychex can help you manage HR, payroll, benefits, and more from our industry leading all-in-one solution. Paychex grows with your business — scalable payroll solutions that evolve as you do. The table below highlights how the two approaches compare across cost, time, compliance, and error risk. Open enrollment often means employees are signing up for a mix of benefits — health, dental, retirement plans, life insurance, and more. It also gives both HR teams and employees reliable, up-to-date information on benefit choices and paycheck deductions. That automation cuts down on manual entry and helps avoid errors between HR systems and benefits providers.

Eye-opening statistics show outsourced payroll is increasing

Payroll providers have systems in place to guarantee that employees are paid correctly and on time, reducing the likelihood of payroll-related issues. Outsourcing payroll gives businesses access to the advanced payroll software and technology used by service providers. If errors do occur, payroll outsourcing providers usually have mechanisms in place to resolve issues quickly, such as a dedicated support team and liability protection.

Even if those reports are not required, many business owners review previous payroll reports to inform their hiring and staffing projections. Depending on the size and structure of the business, payroll reporting may be included in any fiscal year-end reports, especially how to calculate net realizable value if the business is publicly traded or is currently seeking investors. Some employees are likely to have direct deposit, so those amounts must be verified and processed electronically, but pay stubs still must be made available to the employees. If the employee also receives any benefits or has other deductions, such as child support or retirement plan contributions, additional calculations must be made. Each pay period, employees must have their hours totaled, verified for accuracy, and multiplied by their designated pay rate(s).

Affordable mandatory and add-on localized benefits. Hiring out the work can, when all goes well, provide significant advantages and cost savings. Add what is a dependent variable to that the sensitivity of the data involved, and it’s easy to see why these aren’t decisions to rush into. Companies experienced in arranging outsourcing contracts with third-party entities can rely on past experience for guidance. This almost always involves distributing pay on a clearly defined schedule (every two weeks is popular). In other words, whether the company wishes to fully outsource or co-source, and if the latter, how does it wish to divide responsibilities?

Like ADP, TriNet offers custom pricing based on your company’s size, industry, and needs. The Contractors Only plan is simple and cost-effective—$5 monthly per person with no base fee. While Square Payroll doesn’t offer the advanced features of larger platforms, it covers direct deposit and tax filing. Paychex’s Flex Essentials plan starts at $39 monthly, plus $5 per employee, while Select and Pro plans offer more features at custom rates. Pricing for the Plus plan starts at $80 monthly, plus $12 per employee.