A Payroll Service is a firm that will handle all of these tasks independently so that the business owners gets more time in dealing with important matters. Different types of leaves can also be tracked. Once Payroll Service account is opened, the employer provides the list of all employees, the days they worked, and any areas. This data is then managed and the funds are transferred from the employer's bank account to employees account. Employees are paid either by ECS or by cheque. Payroll Service team then provides the payroll and tax reports and management reports to the employer. Reports can be quickly accessed, simplifying corporate payroll tasks and eliminating costly errors.

A Payroll Service has various other services as well for example the administration of the company and managing the employer’s tax payments, labor management issues and handling time, managing expenses, assisting with tax compliance, and even pre-screening assistance. The service also routinely handles the necessary paperwork for direct deposit of employees’ salary. Payroll Service Fees for services differ depending on the size of the staff and the types of services opted. Normally, there is a charge per employee, plus a charge per salary transaction.

In today’s aggressively competitive era, companies need to stay ‘watchful and vigilant’, focusing primarily on the core area of their business while outsourcing the vital but resource consuming back office functions. Outsourcing has become a tendency in most of the industries. Nowadays, most of the companies are looking for easy ways to reduce the human resource at the workplaces. It makes sense to use payroll outsourcing.