What is a payroll service?

The Milestone Team September 21, 2022
What is a payroll service_

Whenever an employer has to pay its employees at a certain time or date, that is what they are calling payroll. Running payroll requires a payroll system, and using an outsourced partner to run that system is called using a payroll service

What is a payroll service


A company’s reputation and financial stability are reflected in its ability to get paid on time and accurately. Disorganized payroll can create a lot of stress and it is possible for employees to lose trust in a company if paychecks aren’t made on time or errors occur. Employees are more motivated and engaged when their paychecks are accurate and timely. There is no room for error when it comes to payroll processing services. Payroll service specialists should use the right tools and design the right process to ensure success for their business and makes payroll an up-and-coming good career choice. It is essential for every business owner to have a payroll solution, and that can be found within a company that offers full-service payroll outsourcing.

Payroll can be a challenging process, as it affects the entirety of your company, and needs to be flexible to meet the demands of different compensation structures. A few common challenges include:

  •  Manual payroll processing
  • Constantly changing employee and regulatory laws
  • Under or overpayments
  • Privacy and confidentiality
  • Managing changes
  • Technology integration

Payroll Processing

Payroll processing service is outsourced assistance to handle all aspects of payroll for another business. Employers who value their time and want their employee’s and payroll tax payments to be accurate and timely can benefit from this arrangement. Small business owners may save money by eliminating costly tax laws and penalties by using a payroll service provider. The process of handling payroll on your own can be very time-consuming and difficult. Outsourcing payroll services allow you to have trained professionals consider employee needs, your business, and legal requirements. Employers outsource payroll services to manage their workers’ compensation. 

A list of Payroll Services includes: 

  • Processing employee hours
  • Cutting checks
  • Depositing funds
  • Make sure all employees are paid correctly and on time. 

Payroll services benefit employees because they have access to customer support and a specific point of contact who can assist them with any and all challenges they may face. Payroll services must develop a process for providing these services and answering major questions that affect your paycheck each month. You can process payroll in minutes, file your taxes automatically, and pay your taxes automatically with the full-service payroll service. The W-2 and 1099 forms are automatically generated and sent to your employees.

Payroll for Small Business

Generally, payroll management is not something that a small business owner wants to devote significant time to. Founders and small business owners are typically focused on building their teams and growing their businesses. In spite of this, payroll is one of the most essential aspects of running a business and has to be done accurately. The process can be challenging, and it’s not something many entrepreneurs have experience with, but it’s essential to get it right. Leveraging payroll management services for small businesses can help small businesses avoid big mistakes, such as noncompliance with tax and labor laws, as well as damage to employee morale. The best payroll service for small businesses is one that is user-friendly and intuitive for entrepreneurs. 

American Payroll Association

A national organization for payroll education, training, and publication, the American Payroll Association (APA) is based in Washington, D.C. Its mission since its founding in the 1980s has been to increase the professional skills of payroll specialists. You have access to payroll conferences, seminars, certifications, and a wealth of information when you join this organization. Every year, the APA organizes nearly 300 payroll conferences and seminars as well as a library of resource texts. APA conducts training sessions for over 18,000 professionals every year. Membership in the APA is open to anyone who works in the payroll industry.

Best Payroll Services

A small business payroll service that is intuitive and user-friendly is the best. A small business owner does not want to add more to their plate, and a good payroll service should be turn-key. Ease of use is the most important aspect. It is important for your payroll system to serve as a central hub for your company, no matter what size it is.

You can rest assured that your payroll is handled correctly with Milestone. When it comes to payroll processing, there is no room for error. Employee satisfaction is equally important as accuracy and timeliness. Our payroll experts will help you design the right process and use the right tools to ensure success. With customized pricing based on the level of service, any number of employees, and the pay cycle frequency, Milestone can own your payroll function so you don’t have to.

Payroll Software

It is important to consider a variety of factors when choosing payroll software for your business: ease of use, integrations, and support are all important. Milestone has two recommendations based on our experience working with a variety of systems.


Gusto is a modern Human Resource feature like payroll, benefits, hiring, management resources, and more — all in one place. Gusto’s mission is to empower your team with a single trusted system, competitive compensation tools, and expert guidance. Gusto is straightforward and is a perfect match for simple needs.

Features of Gusto include:

  • A great option for single-state business 
  • Very easy employee and contractor payroll
  • Great support guides that are detailed with step-by-step instructions
  • Automated onboarding solution 
  • Automatic tax filing and compliance guidance
  • Integrated free checking and high-yield savings account with paycheck advance for employees

Milestone recommends Gusto for payroll services for small businesses and teams. Gusto is moving toward being a full-service HR software but has limited integrations at this point. It is the most cost-effective option and can be very user-friendly for employees and managers.


Rippling makes it easy to manage your company’s Payroll, Benefits, HR, and IT—all in one, modern platform. It brings all of your employee systems and data together and helps automate your busy work. Rippling has the best integration with over 400 apps which makes it the most tech-forward and modern solution. But even with its Unique features for remote teams, such as device management and inventory management, it’s built to be the easiest software for you to set up and your employees to use. Milestone recommends Rippling for when its clients are looking to scale and might need help with onboarding and technology integration. 

Features of Rippling include:

  • Customizable features with notices and messaging 
  • ACA & COBRA administration
  • The best option to calculate payroll for a small business with many temp workers and a need to track hours
  • Employee experience is at a very high level
  • Geared toward small business, but built to scale

Milestone recommends Rippling as a full-service option to incorporate all their human resource needs into one software, especially Payroll services

Contact Milestone to learn more about how payroll services can be a competitive advantage for your business.

Related Content


What Payroll Company Is The Best?

There are many excellent payroll service companies in the marketplace. They all offer different pros and cons, and the best ...

What are the names of payroll companies

What Are The Names Of Payroll Companies?

There are tons of popular payroll service companies, from ADP, to Gusto, to Rain. The best way to find a ...


What Are The Different Types Of Payroll Systems?

The two different types of payroll systems are payroll processors and payroll softwares. A payroll processor is a system where ...

Stay in the know