Frequently Asked Payroll Questions

Outsourcing Payroll
Costs and Savings
About PayrollServices.org

When should a company consider outsourcing payroll?

There is no specific company size at which payroll should automatically be outsourced. The decision usually comes down to time, complexity and the resources available inside the business.

If processing payroll is taking significant time, tax filings or compliance requirements are becoming difficult to manage, payroll errors are occurring, or the business is growing into multiple locations or states, an outside payroll provider may be worth considering.

I only have a few employees. Does outsourcing payroll still make sense?

It can. Small businesses often have simple payrolls, but they also tend to have fewer people available to handle administrative work. In many small companies, payroll ends up being handled directly by the owner, a bookkeeper or an office manager.

A payroll provider can take care of recurring processing, tax filings and payroll records even for a business with only a handful of employees. Whether that is worthwhile depends on the cost of the service and how much time the business currently spends handling payroll internally.

Does PayrollServices.org provide payroll services?

No. PayrollServices.org is an independent directory and matching service. We help businesses research payroll providers and connect with companies that can provide the payroll services they need.

How should I choose the right payroll provider?

Start with the needs of your own business. Consider the number of employees, where they work, how often you run payroll, which services you need and whether the payroll system must integrate with accounting, time tracking or other software.

Price matters, but it should not be the only consideration. Support, reliability, tax filing capabilities, security, industry experience and the provider's ability to handle your particular payroll requirements can be just as important.

Comparing several relevant providers is usually more useful than simply choosing the largest or best-known company.

What can a payroll provider do that my bookkeeper cannot?

A bookkeeper and a payroll provider can have overlapping responsibilities, and many bookkeepers work closely with payroll companies. The difference is usually specialization.

A payroll provider typically has systems and staff dedicated to processing payroll, calculating deductions, handling direct deposits, preparing payroll tax filings and maintaining payroll records. Depending on the provider, additional services may include time tracking, HR tools, benefits administration and workers' compensation support.

For some businesses a bookkeeper may be perfectly capable of handling payroll. For others, using a dedicated payroll provider can reduce the amount of specialized payroll work that needs to be managed internally.

How much do payroll services cost?

Payroll pricing varies considerably between providers. Cost can depend on the number of employees, payroll frequency, number of locations or states, tax filing requirements and the additional services included.

When comparing providers, ask what is included in the quoted price and whether there are additional charges for setup, tax filings, year-end forms, additional payroll runs or other services.

Will outsourcing payroll save my business money?

Sometimes, but not always. A simple payroll handled efficiently in-house may cost very little. For another business, the staff time spent processing payroll, maintaining systems, keeping up with filing requirements and correcting errors may exceed the cost of an outside provider.

Cost savings are therefore only one reason to outsource. Many businesses use a payroll provider primarily to save time, improve reliability or gain access to payroll expertise and technology.

How should I compare the cost of outsourcing with handling payroll internally?

Look beyond the payroll provider's monthly fee. An internal payroll process can involve staff time, software, tax filing, recordkeeping, training and the time required to resolve errors or unusual payroll situations.

The right comparison is the total cost and effort of handling payroll internally versus the total cost of the outside service. The answer will be different for every business.

Is there a charge to use PayrollServices.org?

No. PayrollServices.org is free for businesses looking for payroll services.

Some payroll providers may have commercial relationships with PayrollServices.org, including paying for leads, enhanced visibility or other services.

What services does PayrollServices.org provide?

PayrollServices.org provides information about payroll providers and helps businesses find companies that match their payroll requirements.

Our provider directory contains information about payroll companies, the services they offer and the markets they serve. Businesses can also submit a free quote request to be matched with relevant providers.

How does PayrollServices.org help my business?

Instead of researching payroll companies one by one, you can use PayrollServices.org to understand your options and identify providers suited to your business.

Factors such as company size, location, industry, required services and payroll complexity can affect which provider is a good fit. Our goal is to make that comparison easier and connect businesses with a small number of relevant options.

How do I request payroll quotes?

Fill out our free quote request form and tell us about your business and payroll requirements. We will use that information to identify relevant payroll providers that can help with your request.

How do I add or update a payroll company in the directory?

Payroll providers that would like to be added to the directory, update an existing listing or discuss partnership opportunities can find more information on our For Providers page.

How can I contact PayrollServices.org?

We can be contacted through our contact page or by e-mail at