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What a payroll service handles for you

A payroll service can take a lot off your plate: paying employees, handling payroll taxes, and keeping records organized. RunWise Pay is a free matching service, not a payroll provider, and we help you compare options.

What a payroll service usually does

A payroll service provider helps you pay workers correctly and on time. For many small businesses, that means calculating wages, overtime, deductions, and employer taxes, then sending pay by direct deposit or another payment method.

Many providers also handle payroll tax work, such as calculating withholdings, preparing filings, and submitting payroll taxes to the right agencies. They may also help with new-hire reporting, pay stubs, and year-end forms like W-2s for employees and 1099s for certain contractors.

Some businesses use payroll only for basic pay runs. Others want a fuller service that also includes time tracking, benefits deductions, workers' compensation reporting, or HR tools. What is included depends on the provider and plan, so confirm in writing exactly what they will and will not do before you sign.

Common tasks they can take off your plate

If you are new to US payroll, it helps to think of payroll as more than just sending money to workers. It is also recordkeeping, tax withholding, tax filing, and meeting deadlines that can vary by state.

A payroll service may help with these day-to-day and year-end tasks:

  • Run regular payroll on your schedule, such as weekly, every two weeks, or twice a month
  • Calculate gross pay, overtime, and common deductions
  • Pay employees by direct deposit or other available methods
  • Create pay stubs and payroll reports
  • Calculate and file payroll taxes
  • Track paid time off if that feature is included
  • Prepare year-end forms such as W-2s and some 1099s
  • Keep payroll records organized for your business

If you want help with the actual pay process, see run payroll. If your main concern is taxes and filings, see payroll tax filing.

Want payroll off your plate?

Get matched, free, with a payroll service provider near you. You compare quotes and choose who to hire — and confirm what's included before your first pay run.

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