How to Choose a Payroll Provider in 2025
November 6th, 2024 | 6 min. read
Is your current payroll provider reliable and easy to work with? If payroll errors, outdated systems, hold music or unexpected fees are causing frustration, it may be time to consider a new option.
How can you find a payroll provider in 2025 that not only meets your needs today but can also support your company’s growth in the future?
This article will show you what to look for in a payroll provider who values your business, keeps you compliant, brings automation that works, and adapts as your team’s needs change.
Considering a Change? 2025 Might Be the Right Time
Payroll is more than just issuing paychecks; it’s about keeping your operations smooth, compliant, and equipped to handle whatever comes next.
If you haven’t evaluated your payroll provider recently, you could be missing out on valuable expertise and tech upgrades that could simplify your operations and save you money.
Payroll services have adapted and are all about streamlined services, technology, and responsive customer support. Today’s top payroll providers offer services that go beyond basic payroll, helping businesses save money, reduce compliance headaches, and adapt to the needs of hybrid teams.
Here are four trends to guide you in selecting a payroll provider that’s prepared for 2025 and beyond.
1. All-in-One Tech and Service Bundles
Having employees is expensive–and the costs are only going up. From health benefits and retirement plans to the administrative intricacies surrounding these perks, finding, hiring, and retaining employees is a significant line item for any business.
The benefits you offer must be tracked, updated, and paid out every pay period, which is great news if you have a single tech solution that updates information when changes are made. However, it becomes a nightmare when you have to manage and reconcile those plans in multiple systems. And when you’re working with different partners or outsourced companies for retirement, benefits, and HR, the technology grows in complexity.
Employers are turning to their payroll provers to assume a more substantial role in compliance and administration of benefit packages. Every business wants to streamline these expenses, and one way to do that is by bundling payroll with HR and benefits services under one provider.
The Power of Bundling
Bundling payroll, HR, and benefits removes the guesswork from manual calculations, and relieves YOU of the burden of trying to be a benefits/retirement/HR expert.
It enables employers to manage cash flow better through incentives like pay-as-you-go workers’ compensation and automated 401k retirement contributions.
Instead of dealing with multiple systems for payroll, benefits, retirement plans, and HR, a comprehensive payroll provider can take it all on. This gives you a single source of truth for employee management and often results in cost savings through discounted bundled service packages.
A comprehensive solution can take a few different forms, including Professional Employer Organization (PEO) options, Administrative Services Organization (ASO) options, or bundled service packages.
These bundled services packages typically encompass outsourced HR services, payroll, payroll tax filings, and insurance benefits like workers' compensation, professional liability, medical benefits, and 401k plan options for employees.
At Whirks, we offer a fully administered benefits package that doesn’t cause you to lose ownership of your employees like a PEO.
2. Industry and Multi-State Compliance That Keeps Up
One of the biggest headaches for businesses today? Compliance.
With remote work now the norm, employers have to decipher multi-state laws, which means knowing exactly where your employees are, what state taxes apply, and how labor laws vary. This has made finding a payroll partner with strong compliance capabilities more important than ever.
Why Compliance is a Big Deal
As employees move across state lines, employers should understand their responsibilities for registering, paying taxes, and complying with the laws applicable to their remote workers. Multistate benefits administration is making compliance more complex.
Many states have enacted laws addressing required employee benefits, presenting new challenges for employers administering benefits from another state. Some state laws have differing requirements, making having one base policy for all employees challenging.
Do you have prevailing wage requirements, run certified payrolls, or manage a large number of 1099s alongside W2 employees?
In 2025, companies will place even greater emphasis on partnering with a payroll provider that not only understands their unique organization but also has industry-specific expertise, including knowledge of shift differentials and bonus structures. Companies will want strategic advice for developing sophisticated compensation packages that help attract and retain top talent. Employers will need their payroll team to understand their industry and handle the complexities of multi-state, multi-layered, and fast-growing operations.
What to Look For:
- Multi-State Compliance Expertise: Ensure your provider is skilled in handling tax filings, reporting, and benefit administration across states.
- Industry Knowledge: If you’re in a sector with specific requirements, like hospitality or healthcare, choose a provider who understands your industry’s unique challenges.
- Strategic Compensation Planning: In competitive industries, a payroll provider with consultative experience can help you create compensation packages that attract and retain top talent.
3. Tech Features that Simplify and Connect
Payroll technology has come a long way, and in 2025, it’s about more than just processing payments.
As companies continue with hybrid and remote options, employers need ways to onboard new hires seamlessly, connect and engage remote teams, and build team culture through screens.
Payroll providers are raising the bar with technology that goes beyond the basics, offering AI-powered insights, efficient onboarding, self-service portals, and mobile-friendly access.
Tech Features to Look for in 2025
To truly empower your team, look for tech features that make life easier for both your employees and HR team. Employees today expect to access everything on their phones, from pay stubs to time-off balances. And HR teams need secure digital solutions to keep track of all the moving pieces.
What to Look For:
- Comprehensive Self-Service Portals: Employees should have easy, mobile access to pay stubs, PTO, benefits, and personal information updates, allowing them to manage their details independently and reduce HR’s administrative load.
- Secure Digital Document Management and Accessibility: Look for a system that securely organizes and stores employee documents—from onboarding to tax forms—in one place. Remote-friendly, cloud-based access with strong security features ensures your team can retrieve and manage records from anywhere, with peace of mind about data safety.
- Customizable Reporting and Analytics: Data-driven insights are essential for tracking payroll costs, turnover, and benefits usage. Choose payroll software that offers flexible, easy-to-read reports and analytics. Analytics tools should also be able to track and forecast budget impacts, giving you a better handle on labor costs and potential areas for savings.
As AI becomes more embedded in payroll and HR, organizations need to consider how and where it truly adds value. In areas like recruiting and hiring, where bias and privacy are concerns, AI isn’t a magic solution and requires careful implementation.
4. Customer Support That’s Actually There When You Need It
Good customer support can make or break your relationship with a payroll provider.
This is one of the most important things to consider when choosing any business partner. You want someone who will be there for you when issues arise, whether it’s a simple question or something more complex.
Payroll is personal—it affects every employee—and when something goes wrong, you need someone you can count on to help right away.
Defining Quality Support
This is an underrated point because every single person defines customer service differently. Reliable support means you won’t be left hanging when you need answers. Payroll errors impact your team directly, so having accessible, knowledgeable support is non-negotiable.
Recently, many payroll companies have transitioned their support staff, resulting in longer hold times, voicemails, and delayed resolutions for clients’ urgent payroll needs. Some have even outsourced support entirely, forcing clients through multi-button call queues and automated chat systems, creating enormous frustration for loyal, long-term clients.
So, what truly makes for a positive experience?
- Rapid Response: The ability to promptly address queries, concerns, or issues ensures that payroll-related matters are efficiently resolved, preventing disruptions to daily operations.
- Streamlined Processes: An effective partner simplifies payroll tasks, reducing complexities, minimizing errors, and contributing to a smoother operational workflow.
- Reliability: Consistency and reliability are foundational when outsourcing payroll services. Your provider should meet deadlines, maintain accuracy, and provide a dependable foundation for payroll management.
- Approachability: Friendliness and approachability in customer service contribute to a positive experience. A payroll partner should be accessible and responsive, fostering a collaborative and communicative relationship that goes beyond mere transactional interactions.
- Genuine Human Touch: There’s no substitute for real, relatable support that understands your business. The human touch ensures that the tools and platforms used in payroll services resonate with the needs and experiences of employees.
- Equipping Employees with Resources: A forward-thinking payroll partner understands the value of empowering employees. Providing them with the right tools and resources helps them manage payroll tasks efficiently, contributing to employee satisfaction and streamlining overall processes.
When evaluating providers, don’t overlook customer support. Look for reviews, ask about response times, and find out if you’ll have a direct contact person—someone who understands your needs and will work with you to resolve issues quickly.
Make 2025 the Year You Get the Payroll Partner You Deserve
Take a moment to consider if your current provider is the right fit for where you’re headed. The right provider should be more than just a vendor—they should be a partner in your business’s success.
A good payroll partner can free up your time, reduce stress, and support your team in ways that matter. If it’s time for a change, these trends are here to guide you in finding a provider who’s ready to grow with you and make payroll one less thing to worry about.
If your current setup doesn’t feel like it’s moving you forward, maybe it’s time to re-evaluate your options. At Whirks, we’re all about giving businesses like yours the tools and support they need to thrive.
If you’re interested in seeing if we're the right solution for your business, schedule a no-pressure 30-minute Zoom call with us. Don't be shy!
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