Outsourcing Payroll to Staffing Firms: 6 Tips for Choosing a Provider

Millions of U.S. businesses outsource their payroll processing. Why do they do it, and what benefits does it bring them?

Outsourcing Payroll to Staffing Firms: 6 Tips for Choosing a Provider


Is there a point person who you talk with that talks to your specific contract? Our payroll associate ensures your employees are paid accurately and on time; though nuanced payroll-processing duties vary by employer, position, and industry. If you currently handle payroll or you leverage an HR manager, you might not have considered the possibility of outsourcing payrolling services.


Outsourcing payroll can help your team avoid costly errors that could be cause for litigation or worse. One of the principal areas of concern on the contractors’ end is reliability on administered benefits (health insurance, dental insurance, etc). Do you want to offer benefits? If so, look for tenured payroll professionals that do more than sell you on their service. Risking your contingent workforce based on lousy HR practices is like to result in retention issues that may wreak havoc if not properly addressed.


Training and hiring the wrong employee is costly. Bringing the wrong employee onto your payroll directly as a permanent employee is more work if you need to let them go, but if you hire them as a contractor Premier can handle everything so there is no headache, because we are their employer or record and handle all the liability that comes from administering payroll up to the last paycheck. If you’re not cautious, you may find yourself in lawsuits that can be costly for small businesses.


Are you only looking for payrolling service providers with experience? Accurate reporting requires complete and correct employee records. Improved federal and state compliance guidelines are cumbersome to say the least. Luckily, payroll providers can operate across state lines. Outsourced payroll processors can work with you to follow federal and state payroll and tax regulations to avoid expensive penalties. Just because your company is headquartered Seattle doesn’t mean our California-based agency can’t help you.


Agnostic to your industry, you have to look at the returns of your investment in payrolling provider, and the greatest returns come from combining payrolling with staffing services. Outsourcing payroll should be a platform for building more efficiency into your business. If you are currently considering or utilizing a staffing agency, you may want to look at consolidating payrolling and staffing services. Scale correctly starts with the right decision – try before you buy options allow for flexibility. Do you need talent?


Find the right provider at the start. Talent knows when you change agencies, so don’t confuse contractors by making drastic changes to your provider. But, if you’re not happy with your current provider, find out why and then make a smart move. Switching payrolling providers isn’t complex, but do your research ahead of time. Make sure you’ve considered everything before moving forward. When you’re looking, avoid payroll providers that provide a platform to log in and you never hear from anyone.

Premier Talent Partners has been a preferred office staffing agency for 20 years. Learn more about payrolling your contingent workforce today. 

Bonus Tip: Ask for references!

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