6 Top Payroll Outsourcing Companies for {{year}}

Half of workers will begin a new job search after just two paycheck errors. That's a lot of pressure on business owners who are already juggling multiple responsibilities. 

Even if you run payroll in-house using software, you still open yourself up to human error running payroll for employees. On top of managing day-to-day tasks–payroll, employee benefits, and tax compliance are enough to make a small business owner’s head spin.

The solution? Using a small-business-focused payroll outsourcing company that takes payroll off of your plate, and frees up your time for higher-value tasks.

But who do you trust to manage a critical task like payroll? Do you go with a big box provider, a local CPA, or a local payroll provider? We’re here to help you weigh the options before you make a decision.

This article looks at six top payroll outsourcing companies in 2024 that streamline payroll processing. Whether you need a basic system with a few key features or a more advanced system with a wide range of capabilities, a trusted payroll provider can meet your needs.

6 Top Payroll Outsourcing Companies 

When you first start your business, you might handle payroll yourself in-house. From the surface, payroll can seem simple —just a few employees, straightforward calculations. But as your business grows, so do the complexities:

• More employees require more calculations
• Different pay rates, employee classifications and schedules become a necessary evil
• Tax regulations become increasingly complex
• Benefits administration might enter the picture

All the while–compliance remains more important than ever. 

Outsourcing payroll to a trusted provider can take the pressure off and free up your time for higher-value tasks. But with so many options available, how do you choose the right one for your business?

Before assessing each provider, let’s briefly examine why outsourcing payroll is a great play as you grow and scale your business.

What is Payroll Outsourcing? 

Payroll outsourcing is the process of hiring a third-party provider to handle a business's payroll functions. These can include calculating and processing employee paychecks, withholding and remitting taxes, and administering employee benefits through payroll.

While features and pricing are important, the benefits of payroll outsourcing go far beyond just getting your employees paid on time.

 Let's explore some of the less obvious advantages:

• Enhanced Company Culture: When payroll runs smoothly, it builds trust between you and your employees, which is a cornerstone of a positive company culture.
• Strategic Focus: By freeing up your time from payroll tasks, you can focus on strategic business growth. This shift in focus can be the difference between stagnation and expansion.
• Reduced Stress: The peace of mind that comes with knowing experts are handling your payroll can significantly reduce your stress levels, leading to better decision-making.
• Worry-free Compliance: Staying compliant with ever-changing regulations is a full-time job. Outsourcing ensures you're always on the right side of the law without dedicating an in-house team member to actively track changing rules. 
• Data-Driven Insights: Many payroll outsourcing companies offer reporting tools that provide valuable insights into your labor costs, helping you make more informed business decisions.
  
  

The Hidden Costs of DIY In-House Payroll 

While handling payroll in-house might seem cost-effective, especially for small businesses, there are hidden costs to consider:

• Time: The hours spent on processing payroll could instead be reinvested into your business.
• Errors: Mistakes in payroll can lead to penalties, fines, and unhappy employees.
• Software: Purchasing and maintaining payroll software can be expensive.
• Training: Keeping up with tax laws and regulations requires ongoing education.
• Opportunity Cost: The energy focused on payroll is energy not spent on core business activities.

When you factor in these hidden costs, payroll outsourcing often becomes the more cost-effective option, especially as your business grows.

Now you know the benefits and risks of outsourcing payroll, let’s look at our top picks for companies you can rely on.

Our top picks for 2024 are:

• Paychex - best for businesses with multiple locations
• Dayforce - best for businesses with a large number of employees
• SurePayroll - best for a simple and affordable payroll solution
• ADP - best for larger businesses that need advanced features and functionality
• Square - best for businesses that use Square’s other financial solutions or POS systems
• ConnectPay - best for small businesses looking for full-service payroll assistance and reliable customer support

Now, take a deeper look at each of these options, their benefits, features, and feedback from real users.

1. Paychex 

Paychex is a payroll and HR services provider that offers a comprehensive solution to small and large businesses alike. Paychex offers health insurance benefits in all 50 states, Paychex is an excellent option if your company has offices in multiple states.

The platform is easy to use, and you can self-administer payroll through the company’s software. This software integrates with third-party providers like QuickBooks, so you won’t have to input data twice.

With the most popular plan being the Flex plan, Paychex is best suited for mid-sized companies.

Flex Essentials starts at $39/mo + $5 per employee; Flex Select and Flex Pro require a quote.

Features customers enjoy:

“Gets the job done. Easy to add employees and make changes to them. I also like the HR online library. Most custom reports are what I need. Payroll always delivered on time the next day. Love having a dedicated person to talk to.” - Paychex User

2. Dayforce 

Dayforce previously operated under the brand Ceridian for years. In 2024, the re-branded platform offers a range of payroll and human resources services. In addition to payroll processing, tax withholding, and generating pay stubs and reports, Dayforce provides talent management tools, a mobile app, and an employee self-service portal.

Customers appreciate having everything in one place. Dayforce also services customers globally, making it another excellent option for businesses with multiple locations.

For pricing, you can request a quote from the Dayforce team.

Features customers enjoy:

“When we decided to go with Dayforce, it was because we knew they had experience in the industry. We knew that they had the breadth and the scope to help us in all the locations and in all the different verticals that we operate in.” - Dayforce User

3. SurePayroll 

SurePayroll is a simple and affordable solution for small businesses. You can quickly and efficiently process payroll, calculate pay, withhold taxes, and track time and attendance.

The support team is US-based and available outside of standard business hours. Their mobile app is a selling point, and their self-service option is popular.

Self-service pricing starts at $19.99/mo + $4 per employee, and full-service starts at $29.99/mo + $5 per employee.

Features customers enjoy:

“Customer Service. Ciara was able to get me to the finish line. I appreciate her staying on the phone to help me to complete and process my payroll.” - SurePayroll User

4. ADP 

 Trusted by nearly a million small businesses, ADP is a significant player in payroll processing and HR. Its HR technology is modern, easy to use, and all on one platform. It’s a feature-rich option that suits large businesses and those who need advanced functionality.

There are so many plans to choose from that it might be overwhelming to decide what you need. Do you want a lot of HR resources and support? Do you need to run background checks? Or are you just looking to outsource payroll?

The Essential plan starts at $59/mo, but they prefer you start a quote for your specific needs.

Features customers enjoy:

“What I like best about ADP is that it is user-friendly and easy to navigate. Being able to customize reports is nice! I like that our employees can use this program as well, no problem.” - ADP User

5. Square 

You’ve likely heard of Square. They’re best known for payment-processing tools and drag-and-drop website building. But you can also integrate payroll processing.

If you’re already using their ecosystem, payroll integrates seamlessly.

It lacks some depth, and you may struggle to customize it, but you get a free trial to see if it will work for your business. Businesses that often hire contractors are attracted to Square and their Contractors Only plan.

Employees and Contractors pay $35/mo + $5 per employee, while the contractors-only version costs just $5 per user.

Features customers enjoy:

“I have used the Square interface for years as my primary method of taking payment. I love the simple interface and for me, upgrading to Square Payroll was a no brainer! It’s easy to use, the interface is perfect and I can do everything right on my phone.” - Square User 

6. ConnectPay 

At ConnectPay, we quickly and efficiently set up and process payroll. We focus on providing exceptional payroll support–with additional ancillary add-ons as needed. We guarantee compliance so you can focus on managing your business without running into fees and penalties from the IRS. 

We’re committed to providing reliable customer support. We’ve got a no voicemail guarantee–making sure your calls are answered during business hours–instead of putting you on hold or sitting in a service queue. Our Dedicated Onboarding team focuses solely on providing customers with the best onboarding support and process, providing education along the way as business owners set up employees and learn how to run payroll.

All of our customers are different–so we offer competitive market pricing based on what small business owners need. If you’re ready to simplify payroll, book a free Payroll and Tax Compliance Review with our experts to build a payroll package based on your needs. 

Features customers enjoy:

“I knew nothing about running payroll, and as a small business owner, it was one of the many new things I had to wrap my head around. The team at ConnectPay was patient, attentive and took their time answering all of my questions. We just ran our first payroll and it was so easy thanks to their help!” - ConnectPay Client 

Comparing Top Payroll Outsourcing Companies

Payroll Outsourcing Companies: The Choice is Yours

Every pay period that passes without taking advantage of outsourced solutions costs you time, money, and peace of mind. Don't leave money on the table—let's create a plan that works for your business today and scales for your success tomorrow.

Ready to take that next step in your payroll journey? Schedule your free Payroll and Tax Compliance review with our payroll experts!