What is a payroll service and when should employers use one?
A payroll service is a third-party provider that handles payroll processing for employers, including gross-to-net calculation, tax withholding and remittance, direct deposit, and year-end reporting. Major U.S. payroll services include ADP, Paychex, Gusto, Rippling, QuickBooks Payroll, and OnPay. Most employers outsource payroll because the compliance complexity and cost of getting it wrong exceed the cost of using a service.
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