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Compare Payroll Services
Payroll preparation can morph into a tedious and time-consuming task for any business. Yet hiring additional in-house personnel entails higher expenses as well as higher risks. Payroll service firms allow companies to outsource the responsibility of accounting for employee wages, benefits, and deductions.
In response to these various options, use our comparison tool to locate the payroll service that most closely aligns with your company’s needs. But first, consider the key points below:
- A payroll service does not need to be headquartered in your area. However, it should be able to cover the entire territory in which your business employs workers.
- In addition, look for payroll companies that specialize in your industry and company size. In general, small companies consist of fewer than 50 employees, medium-sized companies contain between 50 and 250, and large companies employ 250 and up. Furthermore, even though many small payroll firms possess the capabilities to serve corporations, it ultimately becomes more cost-efficient to hire a large payroll firm if you manage over 250 employees.
- Also consider what specific payroll processes you would like to outsource. Do you pay your employees via direct deposit or signed paper checks? Do you need a firm to calculate payroll taxes on your behalf? Would you prefer that the work hours of your employees are collected via an automated process?
- Lastly, realize how many firms offer additional services like Human Resources and Benefits Administration .
In addition, some firms offer full-scale outsourcing beyond basic payroll. For a relatively low price, PEOs. HROs. and ASOs create employee management task forces outside of your company:
- Professional Employer Organization (PEO) outsources all of the payroll, human resource, and benefits for their clients. This service is usually available to small firms only, as a PEO engages in co-employment of client’s employees where it shares all of the employment risks, such as paying Workers’ Compensation. A PEO has a master one-fit-all healthcare plan that they offer to their clients. Small businesses often choose to outsource to a PEO due to cheaper insurance and Workers’ Comp plans that PEOs offer.
- Administrative Services Organization (ASO) works similarly to PEO. It outsources payroll, human resources management and benefits administration; however, it does not provide co-employment. ASO better suits smaller middle-sized businesses of under 100 employees.
- Human Resources Outsourcing (HRO) provides a client with a fully functioning HR department without the liability of keeping the HR employees. An HRO can provide most most or all of the Human Resources Management services. This option typically works well for businesses with more than 100 employees.