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By Anna Marie Lee

Topics: Payroll


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Once you’ve decided your company is going to outsource its payroll, you have to choose a payroll company to work with. There are many to choose from, so it can be challenging to make a decision.

Take these factors into account to choose the right provider for your business needs.

Ease of Use

No one has the time to learn a complicated payroll system. The payroll company you choose should have software that’s intuitive with an easy-to-use interface that allows you to do what you need to do simply and easily.

You shouldn’t be getting frustrated or finding yourself calling a help desk routinely in order to figure out how to work the interface.


Different payroll service companies will offer different features. Before you choose a payroll service company, make a list of the different features your business requires. Then, compare your list to what payroll service companies can offer you.

Perhaps you’re looking for direct deposit. Maybe you want a system that helps you manage benefits or time and attendance. Whatever your unique needs may be, you should be fully satisfied with the company you choose and the services and features it offers.


Security is essential when it comes to processing payroll. Payroll is comprised of sensitive employee data, and if it should ever get breached, identity theft is a real possibility. It’s vital then that you do your research about the different payroll service companies you’re looking at to ensure they’ve had no recent security breaches. Make sure the provider you choose to work with has top-of-the-line security measures in place.

Integrating Programs

One thing that often gets overlooked when looking for a payroll service company is whether the company’s software will integrate well with yours and vice versa. Your company currently uses some kind of software to process payroll, and it’s important that all of that data transfers over seamlessly.

Before you commit to a payroll service company, ensure your software programs are compatible.

Customer Service

A good payroll service company will also have excellent customer service. Should you ever have a question or problem, or need to make changes, you should be able to contact the payroll company and have no issues getting your problems solved efficiently and easily.

Some of the best payroll service companies will also have a 24-hour live HR online service so you can contact your representative at any time.

Proven Track Record

When you outsource payroll, you’re entrusting a part of your business to a third party. You want to put that trust into a company that has a proven track record in the payroll industry.

You don’t want to partner with a new, unproven company, and you don’t want to partner with a company that is known for security breaches or bad service.

Read reviews and ask for references before you commit to a provider.


It shouldn’t cost your company an arm and a leg to pay for a payroll service company. You need to stick to your budget.

Make sure the payroll company you choose to partner with offers transparent billing, so you can ensure you’re only paying for the services you need, not a bundle of services.

Choosing a payroll service company is a big decision. Make sure you take the above factors into account when making your decision.


Anna Marie Lee

Anna Marie, Director of Payroll Operations at Paymedia, has over 20 years of experience in public accounting and payroll. She is a Certified Public Accountant who works closely with small business owners. She has spent the last six and a half years evolving in the payroll service industry and now heads the Paymedia operations team. Anna Marie is proud to be from New Jersey, where she lives with her four beautiful kids, her husband, a dog and a cat. To Anna Marie, nirvana is sitting at the beach, doing absolutely nothing.

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