Managed payroll services give companies the option to outsource payroll to a services provider. Managed payroll services can include labor scheduling and data analytics that help control labor costs, compliance with tax and labor laws, and consulting services. The services provider often automates much of the process and monitors the clients’ records to catch costly errors.

Why It Matters to Your Customers

As businesses evaluate their operations to identify ways to operate more efficiently, they may find that outsourcing non-revenue-producing tasks, such as payroll, is more cost-effective. Providers often leverage automated systems, which are usually much more advanced than the capabilities the business would typically have in-house. The services providers’ system can, therefore, perform tasks more quickly and deliver greater accuracy — potentially saving thousands of dollars in payroll errors — and resulting in quick ROI.

The business can choose to outsource all or part of payroll operations to the provider, such as maintaining employee records, onboarding new employees, or tracking time and attendance, keeping the level of control over the process that the business is most comfortable with.

Why Payroll Services is an Opportunity

Offering such as managed payroll services can help you establish your role as a trusted business advisor, not just a services provider. By helping your client find new efficiencies and cost savings in all areas of their business, you can develop a stronger relationship and less likelihood that another managed services provider could replace you with a similar offering.

Consider bundling managed payroll services with other services such as Software as a Service (SaaS) solutions, managed security services, and Data analytics as a Service to give your clients advanced tools for managing their businesses most effectively and profitably. Bundling services will also help you increase monthly recurring revenue and margin.