Payroll services firms handle the complete employee payment process. They calculate employee pay, make payments, and assist businesses with filling out tax forms such as W-2s or 1099s.
Many payroll services providers offer a software platform with a self-service interface for employees to log their hours, update personal data, and access tax information. In addition, these providers may offer employers detailed reports on employee compensation and labor.
Generally, payroll services firms coordinate with an organization's human resources or accounting departments. However, some businesses may opt for a more hands-on approach and manage their payroll process using payroll software.
Small and medium-sized businesses may use payroll services firms instead of employing a full payroll department as a cost-saving measure. These firms may also assist businesses with legal matters to ensure compliance. Businesses can use these services in conjunction with HR consulting providers, accounting firms, and diversity and inclusion consulting firms.
To qualify for inclusion in the Payroll Services category, a services provider must:
- Run payroll and manage employee payments
- Assist in the preparation of tax documents and processing
- Maintain compliance with payroll laws at local, regional, or international level
- Offer to manage processes via a platform that integrates with other HR systems
- Include additional customer support with the ability to chat with payroll experts
