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It is not easy to manage payroll for employees. Keeping up with changing legislation can make this already difficult and complicated task. This is particularly true for small businesses that must have a dozen people to keep the wheels turning.

You don’t have to do payroll calculations manually, manage admin tasks, or keep track of data all on your own. Payroll outsourcing can simplify and reduce stress for your business.

How can you find the best payroll service provider for your payroll needs?

What are the problems with outsourcing payroll?

It is important to know the common payroll problems businesses face before you start looking for the right payroll provider. These key issues will help you identify the most important factors for your company and make it easier to choose the right company to manage your pay.

Controlling costs

It is difficult to control the cost of outsourcing payroll. Payroll outsourcing shouldn’t be expensive as you aren’t hiring an entire staff. However, hidden fees can make your experience miserable.

Process control

Payroll has many processes. Many businesses worry that outsourcing payroll could lead to losing control of these processes. It is possible for this to be true, but it will only happen if you choose the wrong provider. The right provider will give you clear visibility and allow you to be involved in the whole process. This will allow you to keep control over your payroll department.

Data security

Data security is another major problem in outsourcing. Data security and privacy depend on how well the provider is aware of the data security risks and their infrastructure.

Remote communication

It can be hard for teams to communicate remotely. The recent pandemic taught us how to work remotely more efficiently and productively. Good payroll providers will have the right tools and knowledge to allow remote communication without problems.

What to look out for in a payroll firm

Many of these challenges can be avoided by outsourcing payroll to a full-service payroll team. These are important factors to consider when looking for the right payroll services for small business providers.


You need to make sure that the provider is qualified and skilled in accurate calculations when outsourcing payroll tasks. It’s not worth spending money on a service that sends incorrect payments to employees. You should always ensure accuracy.

Refer to customer reviews

Check out online reviews to get a better idea of the services offered by a provider. You can search on Google Reviews, Glassdoor and Trustpilot as well as their website and social media sites. You will need to check the rating and number ratings. A five-star rating can be great but it doesn’t have to be based on one review.

Asking for references from customers is a great way to gather feedback about your service provider. Referees can give you first-hand feedback on the quality of the service, its flexibility, and overall customer-centricity.

Customised packages

A subscription-based or basic package might seem like a good option for your business. As your business grows, you may need to increase your compliance and payroll needs. You will likely need a customized payroll package when that happens.

You may need to search for and onboard another payroll provider if your current provider does not offer this option. It’s important to find a payroll service provider that will customize a package for you from the beginning.

Subject matter expertise

A team of subject matter experts will be available to assist with a variety of payroll tasks including taxes and deductions.

A demonstration of the service provider’s services is the best way to assess their expertise. This should be done with all stakeholders. A visit to the provider’s offices and meeting their payroll staff will provide valuable insight into their abilities and skill sets.


You don’t want your HR team to have to contact the provider every question or every detail when you outsource payroll. This issue can be avoided by choosing a provider that provides convenient services such as HR logins and employee self-service portals. These services enable employees to access basic information and provide guidance. Employees can download pay slips and HR can view the status of salary dispatch.

Data security and legacy data management

Payroll data is extremely sensitive. It’s personal identifiable information that should be protected on servers and online transactions. You want to make sure that your payroll service provider has stringent data security policies and an infrastructure.

Backups should be made by your payroll provider for contingency planning and worst-case scenarios. Any experienced provider should help you migrate legacy data during onboarding.

Statutory compliance

The complicated payroll legislation has many regulations and rules to ensure accuracy, security, and compliance. It is essential to find a payroll provider that has expertise in tax compliance, regulatory compliance, and data privacy compliance in order to ensure your payroll runs smoothly.

Outsourcing your payroll is something that no one will tell you.

You don’t want to be surprised when you first use a service. Here are some things you should know about outsourcing your payroll.

One size doesn’t fit all

The payroll company may not offer a package that meets your organization’s needs. Ask for a customized package and only pay for what you use!

Support for employees is essential

Your employees are essential to your success when outsourcing your payroll. Your employees must be able adapt to new technology and new tools to increase business productivity. You must prepare your employees to transition to a payroll outsourcing company. As part of the implementation, make sure you check with your provider if they offer training and documentation.

Industry expertise matters

Industry expertise is just as important as subject matter expertise. Payroll is different from one sector to the next. It’s a great advantage to find a payroll provider within your industry. Your provider will have the industry knowledge to assist you with any industry-specific laws, regulations and best practices.

Global operations are a plus

Your business could eventually be global because every company grows. A provider that has global experience or a presence can help you manage the process and meet all local payroll requirements. A global payroll provider is always a bonus.

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