The Best Companies That Offer Payroll Services For 1,000+ Employees

Companies that offer payroll services are probably not, contrary to what you might expect a website like ours to say, necessary or even warrented for 1,000+ employee companies. Although these companies probably don't need payroll outsourcing in the traditional sense, they CAN benefit from using outsourcing for a number of features. Read on for more on those options.

If you have read our articles on payroll services, you know we are generally proponents of outsourcing in many situations.

companies that offer payroll

Possibly not so for companies with over 1,000 employees, for two reasons:

  1. Economy of Scale: With smaller companies, the ability to cost justify outsourcing payroll is much easier. With fewer employees, the costs associated with labor-intensive tasks associated with processing payroll in-house often exceed the expense of choosing one of the many competent companies that offer payroll services, and having them do it. Once you get to 1,000+ employees, the expense of hiring a dedicated payroll professional to process payroll in-house start to tip in your favor, and it makes more economic sense that the best payroll services might be done in-house.

    In addition, companies can afford to hire a more sophisticated employee who is knowledgeable about the nuances of payroll laws, such as tax filing. Such expertise, even coupled with purchasing payroll service provider software, will probably cost less than outsourcing payroll.

  2. Availability of Superior In-House Software:

  3. Software packages can be cost prohibitive for smaller companies, but make good economic sense for larger ones. In addition, these Enterprise Solutions actually feature more sophisticated applications with better features than the national companies that offer payroll, such as ADP or Paychex, and which are better suited to companies of this size.

    These Enterprise Solutions offer some of the best payroll services for large companies because they often have greater capabilities. A good example of this is that they can handle increasingly complex calculations: some manufacturing companies have different pay rates for different times of the day their employees work, or changing rates depending on the job being done by the employee, which may change at any given time throughout their shift. A good Enterprise Solution software package will be able to track these changes accurately and update payroll accordingly.

For some critical tasks, however, it definitely is worth considering outsourcing:

  • Tax Filing
  • Printing and Delivering Checks
  • Section 125 Administration
  • COBRA Administration
  • Expense Management
  • These services are available as "stand alone" services from the national companies that offer payroll, and cost much less than the entire system would cost.

    Of course, thoroughly researching the Enterprise Solutions available is highly recommended. Many of these software packages are designed for specific "niche" industries, and can be quite specialized to assist with the specific needs of an industry. Though they can be cost-justified at this size company, they are quite expensive, and replacing them is a large financial undertaking. Getting a detailed Demo, as well as speaking with some companies currently using the system is suggested. This will ensure your company works with the best companies that offer payroll services software available for your specific needs.

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