Top 5 U.S Outsourced Payroll Providers Compared
Take advantage of payroll outsourcing with a key insight from Commercial Experts… Take advantage of payroll
Top 5 U.S Outsourced Payroll Providers Compared
Take advantage of payroll outsourcing with a key insight from Commercial Experts…
Did you know that small businesses across the U.S. spend an average of 260 hours per year on payroll? Why not reclaim those hours by outsourcing to dedicated payroll professionals? But with so many providers out there, who should you go with?Â
Well, you’re in luck because today we’re comparing five of the top payroll providers. By the end of this article, you’ll be more familiar with each company, their pros and cons, and how they can help your business with all of your payroll needs.
What is Outsourced Payroll?
Outsourced payroll is when a business partners with an external provider to manage some or all of their payroll-related duties. This can include running payroll, calculating and filing taxes, managing employee benefits, handling wage garnishments, processing unemployment claims, and ensuring compliance with evolving labor laws. Offloading these tasks can free up countless hours that can be spent running other aspects of your business.
Outsourcing payroll doesn’t mean giving up control of your operations. You will still make all key decisions (such as setting pay structures, determining bonuses, and managing benefits) while your provider handles all the admin behind the scenes. This setup allows you to focus on strategy while the experts handle the logistics behind payroll.
What are the Benefits of Outsourced Payroll?
Cost Savings
Compared to an in-house team, where you need to cover the costs of recruitment, training, salaries, software, and benefits, outsourcing is a far more cost-effective option. In fact, it can reduce the associated costs by up to 40%, allowing you to use these freed-up resources in other areas of your business.Â
It also minimizes the risk of payroll errors and IRS penalties. The latter in particular is a problem for businesses across the U.S., with the IRS collecting $2.8 billion in payroll fines in 2024 alone. Make sure you’re not one of them this year!Â
Time Efficiency & Administrative Relief
Small businesses spend an average of 260 hours annually on payroll tasks like wage calculations, tax filings, and reporting. Outsourcing allows you to reclaim this lost time and redirect it elsewhere, and focus on higher-impact tasks, or just improving your work-life balance. This can be particularly useful if you’re in a period of rapid growth, where bandwidth is already stretched thin.
Compliance & Legal Accuracy
Payroll compliance is complex at the best of times. This becomes even more complicated if you operate across multiple states or countries. One mistake can lead to fines, legal trouble, and potentially irreparable reputational damage. Â
Allowing the experts to handle this keeps your business up to date on regulatory changes and on the right side of any legal and compliance regulations, whether that’s at home or overseas.Â
Reduced Payroll Errors
A simple payroll error can lead to your team not being paid correctly and on time. If this happens, then don’t expect them to stick around for very long. Not only this, but you could also face a whole host of drawn-out legal issues and fines.Â
Outsourcing significantly reduces human error through automation and expertise, with some businesses reporting error rates as low as 1%. Providers often integrate with your existing HR systems, streamlining your processes and ensuring accurate, reliable payroll every time.
Enhanced Data Security & Disaster Recovery
Safeguarding your employees’ sensitive data is part of your role. Without robust security measures, this data is at risk of a leak, and then you’re in serious trouble.Â
Professional payroll providers offer encrypted systems, multi-level access controls, secure data centers, and disaster recovery protocols to protect against breaches or system failures. This grants you access to enterprise-level protection without the need to heavily invest.
Access to Expertise & Specialized Knowledge
Outsourcing gives you instant access to professionals with deep knowledge of tax codes, benefits administration, and employment law. This is essential if you’re expanding into new regions, where pay and tax rules vary. Instead of spending time and money on building an in-house team, leave it to the experts.Â
Integration with HR & Benefits Systems
Modern payroll platforms integrate smoothly with your existing HR software. This allows for automatic syncing, reduced manual tasks, and fewer admin errors, making for a smoother, more efficient workplace. These systems support seamless onboarding, accurate benefits deductions, and robust reporting tools, helping you make informed decisions about workforce costs, compensation, and retention strategies.
Scalability & Flexibility
Outsourced payroll services are built to scale up and down with your business. Whether you’re taking on new staff or downsizing during slower seasons, providers adapt quickly to changing needs. This flexibility makes outsourcing ideal if you’re a startup, growing quickly, or a seasonal business that needs reliable, adjustable support.
Improve Employee Morale
Timely, accurate pay builds trust and reduces turnover, which can cost up to 200% of someone’s salary when replacing them. Outsourcing ensures consistent payroll and often includes employee portals for viewing pay stubs, logging hours, and managing deductions. This reduces HR workload while boosting transparency and satisfaction among your team.
Top 5 Payroll Providers Compared: Our Verdict
Just before we get stuck in, we need to clear something up. This isn’t going to be a straight shootout to see who is top of the payroll table. Think of it more as a comparison so you can make an informed choice as to who is the best for your business.Â
| Provider | Best For | Key Features |
|---|---|---|
| ADP | Scaling businesses and international expansion | Payroll, Tax & Compliance, Reports, Employee Self-Service, Software Integration, Payroll Outsourcing |
| Paychex | Small and midsize businesses | Simple Payroll, Employee Services, Reporting & Analytics, Compliance, Administrative Support, Financial Wellness Programs, LMS, HR Events Calendar, and Indeed® Stipend |
| Gusto | Small businesses/startups under 100 employees | Payroll, Direct Deposit, E‑File 1099, Full-Service Payroll, Online Payroll, Secure Software, Shift Scheduling, Tax Management, R&D Tax Credit Software, Free Setup |
| Oyster | U.S. companies hiring international workers | Payroll, International Payroll, Global Compliance, Customer Success, Salary Insights, Payslips & Reports |
| OnPay | Budget-sensitive small businesses | Direct Deposit Payroll, Hiring & Onboarding, PTO Management, Health Insurance, Workers’ Comp, 401(k), Employee Self-Service, Custom Reporting, Org Charts, HR & Accounting Integrations |
ADP
Best for businesses looking to scale and for those with international expansion in their future.
- Pros
- Scalable solutions
- Tailored packages for all business sizes
- Strong integrations and automation
- Self-service and robust reporting
- Reliable, fast payroll and tax filing
- Cons
- No public pricing makes it difficult to budget
- Mixed reviews when it comes to customer support
- A steep learning curve means it could overwhelm less tech-savvy teams
- Contracts are typically annual, meaning less flexibility in changing providers
First up today, we have ADP (Automatic Data Processing). With over 70 years’ worth of experience, it now operates in over 140 different countries and has over 1 million businesses on its books. Whether you’re a small startup or a large enterprise, ADP offers scalable, compliant, and fully integrated payroll services tailored to your needs.
Why Choose ADP?
Speed Meets Accuracy: ADP prides itself on the speed at which it processes your payroll. Their systems and expertise both free up your time while reducing the risk of costly errors.Â
Tailored Approach: There’s no one-size-fits-all with ADP. All packages are tailored to the unique needs of each client. With tailored plans for small (1–49) and mid-to-large (50–1000+) businesses, scaling is made easy.
Seamless Integration: ADP easily integrates with any tools you may already use, including accounting, ERP, and HR software. This allows for a smooth transition and an effective workflow.Â
Self-Service: Although ADP does offer dedicated customer support, it also empowers you to help yourself. Through their system, you will have 24/7 access to pay info, hours, and reports all at the push of a button.
Designed for Every Size:Â From small shops to large enterprises, ADP is built to serve businesses at any stage of growth.
- Pros
- Run your payroll in just 2 clicks
- Multiple integrated time-tracking options
- Strong analytics with industry-standard benchmarking
- High-grade security
- Cons
- No transparent pricing, only custom quotes
- Interface in need of a revamp, feels dated
- Mixed reports on the quality of customer support
Since 1971, Paychex has been handling the payroll for more than 800,000 clients across the U.S. and Europe. Today, approximately one in every eleven U.S. private sector workers has their payroll processed by this giant of the game. With packages aimed at those running smaller operations, if this sounds like you, Paychex may be your perfect partner.
Why Choose Paychex?
Simple-to-Use: There’s minimal fuss when it comes to Paychex’s systems. You can run your payroll in as few as just two clicks. Efficiency meets precision.Â
Integrated Time Tracking: If your staff are paid hourly or work shifts, then Paychex simplifies their hours worked with multiple time tracking options. Choose from clocks, mobile, or kiosk to fit how your team works.
In-depth Reporting Features: Benefit from strong reporting and analytics to really dig into your business. These include performance comparisons against industry standards based on both region and size. Â
Strong Security Capabilities: Being on the wrong end of a data breach is going to cause you serious legal and reputational harm. Luckily, Paychex systems are protected by robust security, so you can sleep soundly at night.
HIPAA-Compliant: All of Paychex’s plans are fully HIPAA compliant, allowing them to be legally associated with users’ Flexible Spending Account (FSA) plans.Â
- Pros
- Simple to use software
- Automatic tax calculations & seamless payments via direct deposit
- Strong customer support and mobile self-service
- Transparent pricing makes budgeting and forecasting easier
- Cons
- Services advisors are only available on higher-priced plans
- Web app doesn’t offer biometric login options
- Time tracking features may require third-party integrations to be usable
Beginning life as ZenPayroll back in 2012, Gusto has grown into a leading payroll provider, serving more than 400,000 businesses nationwide. It’s driven by its values and its mission “to create a world where work empowers a better life.” If a strong moral philosophy is important to your business, then we’d like to introduce you to Gusto.
Why Choose Gusto?
Simplicity: Gusto’s intuitive interface is both responsive and simple to use. A few pushes of a button, and you’re running and filing your payroll with minimal effort.
Transparent Pricing: Gusto lists all of its pricing clearly on its site. From as little as $0/mo + $6/mo per person for contracts up to $180/mo + $22/mo per person for their Premium plans.Â
Comprehensive Features: Even on lower-tiered plans, you’ll benefit from essential tools like tax filing, direct deposit, integrated software, and even R&D tax credit support, all in one platform.
Built-in Integrations & Reporting: Gusto connects with your other business tools and provides data-rich insights via reporting and analytics. Integrations include: Xero, TSheets, Clover, QuickBooks, Trainual, and more.
Full-Service Experience: All-in-one payroll that comes with setup support, security, and efficient tax management, making it ideal for growing businesses. Dedicated service advisors are also available on premium plans.
- Pros
- Easy to use with a straightforward setup
- Award-winning service with positive customer feedback
- Affordable, transparent pricing with no hidden fees
- Comprehensive IRS support
- Cons
- Limited customization options
- Basic payroll is easy, but more complex workflows may be difficult to master, especially for the less tech-savvy
- Customers report limited integration features
Rounding off today’s list, we have OnPay. Originating from a family payroll business with six clerks, OnPay is now a tech-forward platform that offers affordable payroll services to businesses across the country. Their quality is continually recognized with industry awards, including PC Mag, business.com, and TrustRadius.Â
Why Choose OnPay?
Easy to Use: Their simple-to-use platform allows you to run your payroll in as few as three clicks.Â
IRS Support: Navigating IRS regulations can feel like a minefield; one wrong move and you could be in a lot of trouble. OnPay not only helps you with IRS filing but will even step in and handle any issues on your behalf.
Transparent Pricing: Know exactly what you’re paying with OnPay’s transparent pricing structure. Everything comes at an affordable flat rate of $49/mo plus $6 per person. It even has a nifty calculator on their website that shows you exactly how much its services will cost each month.
Multiple Industry Expertise: No matter your industry, OnPay has something for you. Some sectors it covers include agriculture, nonprofits, restaurants, dental, and healthcare, and it offers industry-aligned tools and compliance.
Award Winning Services: Consistently rated among the best payroll services and have exceptional customer feedback.
- Pros
- Global payroll in 140+ currencies across 180+ countries
- Automated compliance and payroll workflows for global hiring
- Transparent pricing with no hidden setup or termination fees
- Built-in salary insights across markets
- B Corp certified
- Cons
- Premium pricing of $599/mo per employee may be steep for smaller businesses
- There are no PEO options available, even at higher tiers
- This is a standalone platform that does not integrate with other systems
If you’re looking to expand beyond the U.S. borders, then there’s no other option than Oyster. Founded in 2019 with the sole aim of making it easier for businesses to hire, pay, and support exceptional talent, no matter where they are in the world. Driven by values of inclusivity, global opportunity, and impact, Oyster’s team is spread across 60+ countries and operates under a certified B Corp framework to uphold mission-driven standards.
Why Choose Oyster?
Global Payroll Specialists: Oyster is the most unique offering on this list, with their expertise in global payroll unmatched. It pays employees across 180+ countries in 140+ currencies. All of this is done legally and in line with local laws and regulations.
Transparent Pricing: There’s no guessing when it comes to Oyster’s pricing. Starting at $29/mo per employee, rising to $699/mo per employee for Employer of Record (EOR) payroll services and customizable enterprise services.Â
Free Trial For Contractors: If you hire contractors, then Oyster offers a 30 free trial to make sure it suits your needs. If it doesn’t, look elsewhere at no extra cost. If you want to stick around, it’s only $29/mo per employee.
Actionable Salary Insights: Access global compensation benchmarks and salary data to make smarter, competitive hiring decisions no matter which countries you operate in.
Mission-Driven: As a certified B Corp, Oyster commits to expanding global opportunity. This involves publishing annual impact reports and working toward equitable employment worldwide. If this philosophy resonates with your goals, then you’ve found a partner on the same page.
How to Choose the Right Payroll Provider
Experience & Qualifications
A provider’s track record tells you everything you need to know about their credibility. Look for evidence of experience through case studies, years in business, and proven expertise in handling complex payroll needs, especially if you operate in a high-risk or highly-regulated industry.
Cost and Pricing
Payroll providers may charge per process or on a per-employee-per-month basis, each with their own pros and cons. Make sure you know exactly what model your provider is using and that all fees are fully explained and understood. Also, make sure it fits within your current budget.
Scalability and Flexibility
The right provider should meet your current needs and your needs in 5 years. Whether you’re onboarding new staff, opening branches in new regions, or reducing headcount during slower periods, flexibility is key. A scalable partner changes and develops with your business as it evolves.
Security and Compliance
With sensitive employee data housed on your systems, protecting it should be a top priority. With nearly 50% of U.S. small businesses experiencing a cyber attack, choosing a provider with robust security measures should be a non-negotiable. Look for ones that offer encryption and multi-factor authentication, as well as confirming how they stay current on tax laws and employment regulations.
Customer Support
Responsive customer support is essential when it comes to payroll. While email and chat are ok, look for a provider that offers a direct line via phone support, ideally 24/7, especially if you operate across multiple time zones. Even better if it provides a dedicated account manager, as this gives you personalized support from someone who knows your business inside out.
Reviews
Sales pitches will tell you how great the provider is, but customer reviews will tell you the real story. Check platforms like Trustpilot and Google for feedback from past and current clients. Don’t worry about one or two reviews, but if you notice any patterns (both positive and negative), then this is probably a true indicator of what to expect.Â
How Can I Get Payroll Services For My Business?
There you have it, the best outsourced payroll providers in the U.S. compared. But before you go, there’s just one thing for us left to do: find one for your business!
Here at Commercial Experts, we’ve already helped countless U.S. businesses like yours find the best payroll providers for them, and we’d love for you to be next!Â
All you have to do is tap the button on this page below and answer a few quick questions about your business. Then, based on your responses, you’ll receive a range of free payroll quotes tailored to meet your specific needs.Â
Don’t like what you see? No problem: this service is 100% no strings attached, so walk away with zero obligation to commit.
So what are you waiting for? Tap below and get comparing now!Â
FAQs
What is outsourced payroll?
Outsourced payroll is when a business hires an external provider to manage payroll tasks like wage calculation, tax filing, and compliance. This reduces admin workload, improves accuracy, and ensures legal obligations are met.
What are the benefits of outsourcing payroll?
Outsourcing reduces costs, saves time, and minimizes payroll errors. It improves compliance, boosts data security, and offers access to expert support. Businesses can also scale more easily and focus on growth while providers handle the day-to-day complexities of payroll and tax regulations.
Which payroll provider is best for my business?
Gusto is great for startups, Paychex works well for midsize teams, ADP supports scalable growth, Oyster handles international payroll, and OnPay offers affordable tools for small businesses. The right choice depends on your size, goals, and whether you need global or local support.
What should I consider before choosing a payroll provider?
Look at pricing transparency, available features, system integrations, and customer support. Ensure the provider offers strong security, compliance knowledge, and the flexibility to grow with your business. Reviews and industry experience are also key indicators of long-term reliability and service quality.
How can I get payroll services for my business?
Just tap the button on this page below and answer a few simple questions about your business. You’ll then receive a range of tailored, no-obligation payroll quotes from trusted U.S. providers. It’s 100% free, quick, and if you don’t like what you see, just walk away without spending a penny.Â
