Payroll Outsourcing Services for Small and Mid-Sized Businesses
We run your payroll end to end — processing, tax filings, W-2s and 1099s, and multi-state compliance — through a structured monthly process. Your team gets paid accurately and on time, and the compliance risk stays off your desk.
What Usually Goes Wrong
Many businesses only consider outsourcing their payroll when their internal systems can no longer keep up. By the time they reach out, they’re typically dealing with at least one of these issues.
Misclassified Workers
You've been paying someone as a 1099 contractor, but the state legally views them as a regular employee. You usually won't catch it until an audit.
Payroll Tax in the Wrong State
You hired a remote worker in a new state but never registered your business there. A filing that should have happened months ago suddenly turns into a penalty notice.
A Buried Calculation Error
A minor error like a missed deduction or an outdated tax rate can hide in your system for months, sitting undetected in routine runs until someone actually reconciles the numbers.
You're the Payroll Department
What started as running it yourself "for now" is still eating your Friday every other week — on top of everything else the business needs from you.
How Our Outsourced Payroll Service Works
From discovery to your first clean pay run, here's exactly what happens — and when.
Discovery call
A 30-minute call with Nimesh or a senior. We learn your headcount, the states you operate and hire in, your current payroll setup, and what isn't working.
Scope & Payroll Review
We review your current payroll setup in detail — software, worker classifications, state registrations, filing history. You get back a written scope: what we'll do, what it costs, and how long onboarding takes.
Onboarding & Setup
Onboarding kicks off. Your account manager sets up software access, handles new-state tax registrations where needed, reviews worker classifications, and build your custom payroll calendar.
Ongoing Payroll Processing
Payroll runs on a published calendar — weekly, biweekly, or semi-monthly. Payroll tax filings, W-2s, and 1099s handled on schedule.
What's Included in Our Outsourced Payroll Solutions
We run your payroll and make sure it's right — accurate hours, clean runs, and every dollar posted correctly to your books. Here's what that covers.
Payroll Processing
Weekly, biweekly, or semi-monthly payroll runs across salaried, hourly, and contract workers — processed on your platform with direct deposit, pay stubs, and off-cycle runs when you need them.
Hours & Timesheet Review
We check hours and timesheets before every run, so overtime, rate changes, and corrections are caught before payroll goes out.
Payroll Accounting
Every run coded and posted to your books correctly — wages, taxes, and deductions mapped to the right accounts and reconciled, so payroll and your financials always agree.
1099 Contractor Payments
Contractor payments tracked and processed alongside your team, with year-end 1099-NEC prep handled cleanly.
Employee Records Management
New hires entered into payroll, final-paycheck runs handled on termination, and employee records kept current — accurately, and in step with each state's rules.
Payroll Software Setup & Migration
Gusto or ADP or any payroll service provider — set up fresh, or migrated from your current provider without losing history.
Why Businesses Choose Datastub for Outsourced Payroll
Outsourcing your payroll raises real questions. Here's where we stand on the six that matter most.
Quality Control
Will I be able to control quality across an outsourced team?
- Every output passes through a four-tier review: accountant → senior → lead → manager.
- One assigned account manager who owns your engagement end to end.
Data Security
Will my data be safe?
- US-hosted Microsoft security stack, encrypted at every level.
- Role-based, office-only access — and covered by E&O and cyber insurance.
Point of Contact
Who's my point of contact?
- A dedicated account manager assigned to your engagement, with a 24-business-hour response on every question.
- A monthly meeting to walk through your numbers — not just send them.
Industry knowledge
Have you worked with my industry?
- Deep expertise across 7 industries: construction and contractors, wireless repair, eCommerce, adult home care, real estate, retail, and franchisee.
- We serve others too — and we'll be upfront if yours is new to us.
Transition
How will the transition work?
- Onboarding starts within 48 hours of signing
- We review whatever payroll setup is already in place and take it from there.
Flexibility
What if it doesn't work out?
- 60 days' notice — no long-term contracts.
- A clean handover with every payroll record, ready for your next provider.
Real Results From Our Payroll Outsourcing Engagements.
Three real payroll engagements — what we found, what we did, and what it meant for the client.
A Misclassification Flagged at Onboarding
A multi-state home care client was paying three full-time caregivers as 1099 contractors — a clear misclassification. We caught it during onboarding and reclassified them to W-2, getting the client compliant ahead of a state labor audit already on the calendar.
Missing Out-of-State Registrations
A general contractor picked up crews in two neighboring states without registering for payroll tax in either. We caught the gap during setup, got both registrations handled, and ran payroll correctly retroactively.
The California Overtime Rule
A real estate client was paying California leasing staff overtime only after 40 hours a week — missing the state’s daily rule that kicks in past 8 hours in a day. We caught it in a payroll review, corrected the settings, and helped them work out the back pay owed.
Industries we know deeply
We work with businesses in every industry. These are some we know inside out.
eCommerce
Multi-channel sales, inventory by SKU, marketplace fees, returns, multi-state sales tax.
We reconcile Shopify, Amazon, eBay, and Etsy into clean books and handle the nexus filings.
Read More ->Wireless repair
Parts inventory across 30K+ SKUs, multi-location, repair vs. resale sales tax rules.
This is the industry we started with in 2019. We've handled the messiest cases.
Read More ->Contractors
Job costing, WIP, retainage, schedule-of-values, 1099 vs. W-2 classification.
We track every job to a real margin so you know which work is making money.
Read More ->Real estate
Per-property books, depreciation, 1031 exchanges, operator vs. investor entity structure.
One client. Multiple LLCs. Books that roll up cleanly at year-end.
Read More ->Home Care
Caregiver payroll, multi-state compliance, Medicaid billing reconciliation.
We handle the payroll mechanics and the S-Corp election questions that come with growth.
Read More ->We Also Serve Industries
Don't see yours here? We've handled plenty that aren't on this list.
Get in TouchOutsourced Payroll Services — Questions Owners Ask First
The things people want to know before they pick up the phone. Still unsure?
What does outsourced payroll with Datastub cost? +
Pricing depends on headcount, pay frequency, and how many states you run payroll in. After the payroll review you get a written scope with fixed pricing — no hourly surprises. Most ongoing engagements run on a flat monthly fee.
What payroll software do you work in? +
Gusto, ADP, Paychex, OnPay, Rippling, and Square Payroll. If you’re already on one, you stay on it. If you’re not, we’ll help you pick the right fit and get you set up.
Can you handle payroll if we operate in multiple states? +
Yes. We run multi-state payroll and make sure hours, rates, and state-specific rules — like California’s daily overtime — are applied correctly on every run. Your platform handles the tax registrations and filings underneath; we make sure what goes into it is right.
How do you handle W-2 vs. 1099 classification? +
We review how each worker actually works — schedule, supervision, tools, exclusivity — against the federal and state tests, not just how they’re labeled. If something’s misclassified, we flag it and walk you through fixing it before it becomes a problem. A full reclassification is scoped separately so you know exactly what it involves.
What do you catch that a routine payroll run might miss? +
Hours and timesheet errors, misapplied overtime rules, missed deductions, and rate changes that slipped through — caught before the run goes out, not after. That review is part of every pay cycle, backed by our four-tier check.
Can you fix payroll if it’s already gone wrong? +
Often, yes. We review what’s there, correct settings and calculations going forward, and help you work out any back pay or corrections owed. Larger remediation is scoped separately so you know exactly what it involves.
Can you switch us from our current payroll provider? +
Yes. We move you off your current provider without losing history — employee records, pay history, and settings carried over — and run the first few cycles closely to make sure nothing broke in the move.
How often is payroll run? +
Whatever your business needs — weekly, biweekly, or semi-monthly. We run on your existing schedule; we don’t make you change it.
Research Us the Way You Research Now
Get straight answers about payroll services — without browsing the whole website.
What does Datastub's outsourced payroll service include?
How do you handle payroll if we operate in multiple states?
How do you review W-2 vs. 1099 worker classification?
What do you catch that a routine payroll run might miss?
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Let's get your payroll right — and keep it that way.
Book a free consultation. We'll look at where your payroll stands, what it needs, and whether Datastub is the right fit. No obligation.