12 Best Management Payroll Services for Business in 2024
Have you ever thought about how much time and resources you could save with a managed payroll service?
Managed payroll services are organizations that take over the complex, time-consuming task of managing payroll for businesses, thus allowing companies to focus more on their core competencies.
They streamline payroll operations by handling everything from the calculation of wages and salaries to the distribution of paychecks.
Small businesses, startups, as well as large corporations, can all benefit from these services. Even if you are a solopreneur, having a professional take care of your payroll needs can make a significant difference in terms of compliance, accuracy, and time saved.
What are Managed Payroll Services?
Managed payroll services handle all aspects of payroll. They calculate the appropriate wages based on hours worked, rates of pay, and any overtime, deductions, or bonuses. They ensure that employees are paid accurately and on time, providing them with their payslips either in paper format or digitally.
Beyond this, managed payroll services also handle tax calculations, contributions, and deductions, ensuring that everything is in compliance with the latest tax laws. They also generate necessary reports for both internal and external use, including year-end tax reports.
Additionally, some payroll service providers offer integration with other HR functions such as benefits administration and time tracking, thereby offering an all-in-one solution. They can often provide a more extensive range of services compared to what an in-house payroll team can offer, making them an excellent option for businesses of all sizes.
Benefits of Hiring Managed Payroll Services
Managed Payroll Services present the following benefits:
- Improved Accuracy: Managed Payroll Services have expertise in handling payroll tasks with precision. They are equipped with the latest technology and have access to updated regulatory information, which greatly minimizes the risk of errors in payroll processing.
- Time Saving: Payroll management can be time-consuming. By outsourcing this function, businesses can focus more on their core activities, fostering productivity and growth. Payroll services take care of everything, from calculations to disbursement and reporting, freeing up significant time for your team.
- Regulatory Compliance: Managed Payroll Services ensure you stay compliant as they are continually updated with the latest regulations, minimizing the risk of penalties or legal issues.
- Cost-Effective: In many instances, outsourcing payroll management can be more cost-effective than handling it in-house, especially for small and medium-sized enterprises. It eliminates the need for dedicated staff, software installation, maintenance, and training costs.
- Enhanced Data Security: Payroll processing involves handling sensitive data. Managed Payroll Services employ secure systems and adhere to strict data protection policies, thereby reducing the risk of data theft or fraud.
- Access to Additional Services: Many payroll providers offer additional services like HR management, benefits administration, and workers’ compensation, providing an integrated solution for businesses and contributing to overall operational efficiency.
- Employee Self-Service: Many payroll service providers offer portals or apps where employees can access their pay stubs, tax information, and benefit options. This not only enhances transparency but also empowers employees and reduces HR inquiries.
- Expert Support: When you hire Managed Payroll Services, you gain access to experts in the field who can provide support and guidance. This can be particularly beneficial in complex situations, such as regulatory audits or handling unique payroll scenarios.
12 Best Management Payroll Services to Hire
Some of the top Management Payroll Service providers include:
1. Bambee
Bambee has emerged as a top contender in the payroll services sector, standing out for its exceptional user-friendly features and comprehensive services. They offer services like automated payroll processing, tax filings, and an intuitive, user-friendly interface.
One notable feature of Bambee is their HR support. The platform can help small businesses manage HR issues, ensuring compliance with labor laws and regulations. It’s like having your own HR department, without the high costs.
Additionally, Bambee is recognized for its excellent customer service. They provide businesses with a dedicated account manager to guide them through setup and handle any issues that may arise.
2. OnPay Payroll Software
OnPay Payroll Software is another top contender in the payroll service industry. They are known for their transparent, low pricing and versatility, making it an excellent choice for small businesses and startups.
OnPay offers an array of features, including automatic payroll, employee self-service, and integration with popular accounting software. The platform also handles all tax filings and payments, further simplifying the payroll process for businesses.
The platform also provides businesses with HR resources, such as custom onboarding and offboarding checklists, helping companies manage HR tasks more efficiently.
3. ADP Payroll
ADP Payroll is one of the most well-known names in the payroll service industry. They offer a range of plans to suit businesses of all sizes, making them a versatile choice.
Their payroll processing system is fully automated, ensuring accuracy and efficiency. They also handle all tax filings and offer direct deposit and mobile access for added convenience.
One standout feature of ADP Payroll is their robust reporting. Businesses can access a wide range of payroll and HR reports, helping them gain valuable insights into their operations.
4. Paychex Payroll
Paychex Payroll offers a comprehensive payroll solution that includes features like automatic payroll processing, tax filing services, and a user-friendly mobile app. They also provide a range of additional services, such as HR support and benefits administration.
One major advantage of Paychex is their scalability. They offer different packages to cater to businesses of all sizes, making them an excellent choice for both small businesses and large corporations.
Additionally, Paychex has a reputation for excellent customer service, providing businesses with dedicated support throughout the setup and operation process.
5. Gusto Payroll Software
Gusto Payroll Software is a popular choice among small businesses due to its simplicity and affordability. It provides full-service payroll features, including automatic payroll, tax filing, and direct deposit.
Gusto stands out for its HR features. The platform provides HR tools like onboarding checklists, employee directories, and time tracking, making it a comprehensive solution for small businesses.
Additionally, Gusto integrates seamlessly with popular accounting software, which can streamline operations for businesses.
6. Paycor
Paycor is a full-service payroll and HR provider that caters to small and medium-sized businesses. They offer comprehensive features, including payroll processing, tax filing, and time tracking.
Paycor stands out for its user-friendly interface. The platform is intuitive and easy to use, making it an excellent choice for businesses new to payroll software.
They also provide excellent customer service, offering dedicated support to help businesses make the most of their platform.
7. Intuit QuickBooks Payroll
Intuit QuickBooks Payroll is a powerful payroll service that integrates seamlessly with the QuickBooks accounting software. This makes it an excellent choice for businesses already using QuickBooks for their accounting needs.
The platform offers comprehensive payroll features, including automatic payroll, tax calculations, and direct deposit. Additionally, it provides valuable HR resources, including employee self-service and a library of HR advice and resources.
Intuit QuickBooks Payroll also stands out for its range of plans. They offer flexible options to suit different business needs and budgets.
8. Deluxe
Deluxe offers comprehensive payroll and HR solutions for businesses of all sizes. Their features include payroll processing, tax filing, direct deposit, and HR support.
One standout feature of Deluxe is their personalized service. Each business gets a dedicated payroll specialist who provides personalized support and guidance.
Additionally, Deluxe offers a flexible platform that can cater to the specific needs of different businesses, making it a versatile choice.
9. Rippling Payroll
Rippling Payroll provides a comprehensive payroll solution that includes features like automatic payroll, tax filing, and benefits administration. The platform is user-friendly and intuitive, making it easy for businesses to manage their payroll.
A unique feature of Rippling is their focus on integration. The platform can integrate with over 400 business applications, helping businesses streamline their operations.
Rippling also provides excellent customer support, ensuring that businesses have the guidance they need to navigate their platform effectively.
10. Square Payroll
Square Payroll, part of the Square product suite, is an excellent choice for small businesses and gig economy workers. Their features include automatic payroll, tax filing, and direct deposit.
One major advantage of Square Payroll is its integration with the Square Point of Sale system. This allows businesses to sync their payroll with their POS system, simplifying their operations.
Additionally, Square Payroll offers a contractor-only plan, making it an excellent choice for businesses that primarily work with contractors.
11. Papaya Global Payroll
Papaya Global Payroll offers a unique solution for businesses with international workforces. Their platform provides global payroll services, ensuring compliance with local labor laws and regulations.
A standout feature of Papaya Global is their consolidated reporting. The platform provides a single, unified report for global payroll, helping businesses gain a clear overview of their operations.
Additionally, Papaya Global provides excellent customer service, offering dedicated support to help businesses navigate international payroll effectively.
Remote Payroll
Remote Payroll provides a comprehensive solution for businesses with remote workforces. Their platform offers international payroll services, tax filing, and benefits administration.
A unique feature of Remote Payroll is their focus on remote work. They provide tools and resources to help businesses manage remote teams effectively, making them a standout choice for businesses in the remote work era.
Additionally, Remote Payroll offers a simple, transparent pricing structure, making it easy for businesses to understand what they’re paying for.
Is Hiring Management Payroll Services Worth it?
The decision to outsource payroll can be a significant step for any business. The benefits can be substantial, but it’s also important to consider your specific needs and resources.
Businesses that struggle to keep up with the frequent changes in tax laws and regulations can significantly benefit from outsourcing. Managed payroll services have the expertise and resources to ensure compliance at all times, minimizing the risk of penalties.
Also, for businesses with a sizable workforce or complex payroll, the time saved by outsourcing can be considerable. The business can then redirect these resources towards growth and expansion strategies.
Moreover, the additional features offered by many managed payroll services, like HR functions and mobile access, can enhance efficiency and employee satisfaction. Given these advantages, hiring a managed payroll service can indeed be worth the investment for many businesses.
Frequently Asked Questions
Below, we’ve compiled and answered some of the most frequently asked questions about payroll outsourcing services:
What are Managed Payroll Services?
Managed Payroll Services are companies that handle all aspects of payroll administration for other businesses. They take charge of payroll processes such as calculating wages based on hours worked and rate of pay, accounting for deductions, bonuses, and taxes, distributing payslips, and ensuring compliance with international payroll laws. By taking care of these operations, they can streamline your business’s payroll department, saving you time and effort.
How do Managed Payroll Services ensure tax compliance?
Payroll managed services ensure tax compliance by staying updated on all the latest tax laws and regulations, both domestically and internationally. They calculate and withhold the correct amount of tax from each employee’s paycheck, file necessary tax forms, and make timely tax payments. By managing these tasks, they also generate accurate tax reports for businesses, which can be extremely helpful during the tax season.
How do Managed Payroll Services protect my payroll data?
Managed Payroll Services take data protection seriously. They use secure, encrypted systems to store and process payroll data. They also have stringent policies and protocols in place to protect against data breaches and to ensure compliance with data privacy laws. Moreover, they often conduct regular security audits to further enhance their data protection measures.
Can Managed Payroll Services integrate with my existing HR software?
Yes, most managed services in the payroll sector can integrate seamlessly with your existing HR software. This includes software for time and attendance tracking, benefits administration, and more. The ability to integrate with existing systems can streamline your payroll processes, thereby promoting a more efficient workflow in your payroll department.
How much does it cost to hire a Managed Payroll Service?
The cost of hiring payroll managed services can vary based on several factors, including the size of your business, the complexity of your payroll, and the specific services you require. Some providers charge a flat monthly fee, while others charge per paycheck. It’s recommended to get quotes from several providers to understand the average cost of such services.
What features should I look for when choosing a Managed Payroll Service?
When considering managed services for your payroll department, look for features such as automated payroll processing, tax filing, direct deposit, employee self-service, and the ability to integrate with other systems. Other useful features might include mobile access, HR support, and robust reporting capabilities that ensure payroll accuracy. The specific features that will be most important to you depend on your business’s unique needs and operations.
