What are the names of payroll companies?
Payroll companies can come in two forms. The first, and most common, is a payroll provider. These are online payroll services that help manage, store, and execute payroll. They make everything from taxes to 1099s a little easier. The second type of company is a payroll management company. These companies provide payroll specialists to perform payroll management tasks on whatever payroll system your company uses. These are not as well known, but they can be extremely helpful for small businesses who want to ensure their payroll is compliant.
Here are the names of the most common payroll systems:
- Gusto Payroll
- Intuit Quickbooks
Who is the largest payroll provider?
The biggest payroll provider is ADP. They claim to serve 920,000 clients in over 140 countries. Approximately 1 in 6 workers in the U.S. are paid via ADP payroll. Paychex is right behind ADP. Paychex claims to serve 730,000 businesses. These businesses offer more than just a payroll service line, but they are the largest providers.
While ADP and Paychex are the largest systems, that doesn’t mean they are best suited for all companies. Different providers offer different benefits and employee experiences. At Milestone, we recommend Rippling for the best employee experience. The interface for employees trumps almost any other payroll system. We also recommend Gusto for smaller businesses. Gusto is extremely affordable and has many useful and easy to use add-ons.
What industry is payroll?
Payroll falls under one of two industries. The first is Human Capital Management (HCM). The second is payroll and bookkeeping services, which can be more broadly defined as professional services.
Internally, payroll also falls under two different functions. It fits under HR for both employee engagement and sometimes administration. It also fits underneath the finance department. Most businesses have a payroll specialist who is part of both internal teams.
How do I choose a new payroll provider?
Here are the 5 steps you should take when switching to a new payroll provider:
- Assess your current payroll system- It’s really important to know why you want to switch to a new payroll provider. List out the downfalls of your current payroll system. This will be the base for understanding how to choose a new payroll system. It’s also essential to know how to export your payroll data from your current provider. This will make implementing a new payroll system much easier.
- Survey stakeholders- It’s important to get a pulse on your employees and major stakeholders. For example, do any of your employees or payroll specialists have experience with a platform they like? Do they have experience with switching platforms?
- Research Options- At this point, you should know your needs for a payroll system. Begin researching on third-party review sites or by asking business partners at different companies what they use. The research process should be in-depth. There are many payroll providers, but good research allows you to narrow down the possibilities to the best fit for your business.
- Demo with 3-4 companies- As noted above, there are lots of different platforms for payroll that all provide slightly different services. After your research, 3-4 companies maximum should get a demo. When demoing, make sure to get a feel for how the system will look for the employee interface and the management interface. Many companies only do one of these well, so also consider your priorities. Companies also have services beyond just payroll such as HR or benefits support. Asking questions during a demo about these services will help you make the best decision possible.
- Pick the best company for your business, even if it’s more costly- The fit for your employees and business is more important than the cost. The cost of that system will pay off in the time it gives back to your employees and the experience they have on the platform. However, the best payroll systems are not always the most expensive ones. The most important thing is to get a system that fits your company’s needs for the long term. You don’t want to have to switch payroll systems later on because of company growth, for example.
Need Payroll Help?
At Milestone, we have a team of payroll professionals that you can rely on to do your payroll correctly and efficiently. We specialize in handling payroll, so your team can focus on other tasks. We can even advise on and optimize your payroll processing. Contact us today to get started. We are ready to answer any questions.
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