Published By:
Jon Davis
Updated: September 4, 2025
Payroll is often considered the lifeblood of a business — and as your company grows into a corporation, it becomes increasingly complex. Why is it so tricky? Well, there’s a lot to keep track of when paying employees.
Whether it’s managing payroll taxes, staying up to date with state and federal changes, or tackling tightly regulated compliance requirements, payroll can overwhelm even the most knowledgeable and well-staffed teams.
A corporate payroll provider streamlines this complexity, handling payment processing, payroll taxes, and compliance so your team can focus on driving growth and innovation. But how do you know you’re ready to pivot to this type of provider?
This article breaks down the benefits and costs of corporate payroll services and offers practical tips for choosing the best provider for your needs.
Can any provider handle your corporate needs? Not exactly. Small business and corporate payroll services serve distinctly different requirements.
As a business expands, the payroll process scales in complexity. Corporations typically offer more comprehensive benefits, track extensive employee data, and navigate more intricate regulations than small businesses. Most corporations maintain a dedicated team to handle payroll processing, yet even with proper staffing, they may struggle to stay current with evolving requirements or risk fines for regulatory noncompliance.
Employers are responsible for paying and withholding the following payroll taxes every pay period:
Both corporations and small businesses can outsource their payroll to a dedicated service provider. However, given the complexity of S Corp payroll, choosing a provider that offers a scalable payroll solution specifically catered towards corporations is essential.
“There are three different approaches to payroll management: payroll software, partially or fully outsourced payroll services, and manual payroll processing. For most businesses, however, processing payroll manually isn’t an option.
For most small businesses, payroll software and a knowledgeable staff member or two are enough to run payroll efficiently. For larger businesses, however, either an in-house payroll team or partially or fully outsourced payroll often makes the most sense.”
— David Kindness, CPA and OnPay contributor
Let’s explore the difference between these two options below.
The answer depends on your business priorities. Outsourcing isn’t the right fit for every business. Many corporations prefer delegating their payroll to an in-house team, while others entrust the entire process to specialized experts.
The decision often comes down to control vs. convenience. When you handle payroll in-house (with or without third-party payroll software), company leaders maintain 100% control and oversight. Conversely, end-to-end payroll management services for corporate firms offer greater convenience, allowing your team to redirect their time and attention toward strategic initiatives, but this freedom comes with a lack of payroll oversight.
Additional benefits of outsourcing to a corporate payroll service include:
The cost of corporate payroll services varies depending on the provider you choose and the size of your business. Most providers charge a base fee with an additional charge per employee paid. With OnPay, for example, you’ll pay only $49/month plus $6 per employee.
A corporate payroll service encompasses much more than distributing employee payments. It includes a comprehensive range of features that streamline the entire payroll process:
“Non-payroll services, such as accounting, marketing, sales, etc, are not included in a payroll processing service. But with payroll processing handled expertly, you can dedicate more resources to these important financial and revenue-driving activities.”
— David Kindness, CPA and frequent OnPay contributor
With numerous payroll providers in today’s market, each offering specific services, pricing, and promises, selecting the right one requires careful consideration. The key is choosing payroll software that’s tailored to your business needs.
Here are the features to evaluate when comparing payroll service providers:
“Since implementing OnPay as our payroll solution, we have found it to be an incredible value! It saves countless hours on manual entries and tax forms while enabling quick, easy direct deposit. The reports function helps us budget more effectively. We quoted several payroll services, but none offer the same scope of services and support as OnPay for the price!
— Tyler McCardell, Wakefield EMS
One of the most common pitfalls corporate leaders encounter when selecting a payroll service is focusing solely on price. Don’t just compare rates — seek a provider that delivers excellent software, guaranteed compliance, and supportive customer service, along with any other features your company requires.
Another frequent mistake? Rushing the decision process. Take time to thoroughly compare available payroll solutions and consult with company leaders to select the best solution for your business.
Corporate payroll differs significantly from small business payroll — it’s more complex and requires specialized expertise to avoid costly compliance errors. As your business grows, evaluating whether to transition from a small business to a corporate payroll service provider becomes an important decision. OnPay offers solutions designed to grow alongside your business. With easy-to-use software, automated compliance features, and comprehensive support, the product adapts to your changing payroll needs without the typical complexity of enterprise solutions. Plus, it’s one of the most affordable payroll services on the market.
If you have any questions related to the services we offer and how it can fit in your organization, please reach out, as our team would be more than happy to answer your questions!
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.
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