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Insights — Exbo Group

Choosing the Right Payroll System for Your Business

payroll systems
Minute read

Using a payroll system is one of the easiest and best ways to streamline and automate your payroll, keep track of spending, and pay employees accurately and in a timely manner. These systems also take care of the tricky compliance mix-ups and miscalculations that often create risk for growing businesses at both the federal and state levels. Your days of time-consuming spreadsheets or figuring out payroll by hand are over.

Which Payroll System is Best for My Company?

The two main choices are Administrative Service Organizations (ASOs) and Professional Employer Organizations (PEOs.) But, how will you know which is right for you? 

In general, the best payroll system for your company will depend on the size and scope of the company, and whether you have your own HR department. 

Administrative Service Organizations

ASOs tend to work better either for smaller companies who can more easily manage their own HR, or for very large companies with internal HR teams. 

  • What they do: distribute payments, manage deductions and submit payroll tax filings for their clients. 
  • What they don’t do: Administer wider benefits or assist with compliance, like registering your business in a new state. 

An ASO works great for companies that want to maintain more agency regarding their employees, benefits, and Human Resources. Working with an ASO means lower entry and per employee costs, more say and control over benefits, and quicker setup for employees and contractors. 

Professional Employer Organizations

PEOs are usually better for medium-sized companies that would benefit from outsourcing their HR needs. These systems do basically everything. They function as your company’s HR department and sign on as “employers of record” by entering into a “co-employment agreement” with your company. Your employees will benefit from larger pools of partners under the umbrella of the PEO’s FEIN number. PEOs can offer competitive health insurance, comprehensive HR services and support, assistance with Employee Handbooks, alignment of company policies, and shared knowledge of employment risks. 

What are the best ASO and PEO options?

Here's what you can expect from some of the leading ASOs and PEOs:


  • Gusto, Inc provides cloud-based payroll, benefits, and human resources management software for businesses based in the United States. Gusto handles payroll and tax, labor, and immigration compliance. 
  • QuickBooks’ software platform covers the finance functions for millions of small businesses. QuickBooks Payroll allows users to manage employee payroll, pay contractors, track time, file taxes, and sync payroll data seamlessly for enhanced reporting. 
  • Run from ADP, Inc. caters to small businesses in need of a user-friendly, automatic payroll processor. Run works great for small teams who don’t require the cost and complexity of fully outsourced HR. It also handles all payroll processing and tax compliance with a simple set-up. 


  • Rippling provides cloud-based HR and IT employee management solutions, including payroll, benefits, computer and software management, and endpoint security. The company’s mission is to streamline human resource and information technology processes. 
  • Insperity offers human resources and administrative services to small and medium-sized businesses. With over 60 offices across the US, Insperity serves more than 100,000 businesses employing 2 million people.
  • Justworks’ software serves small to medium-sized businesses by managing payroll, human resources, benefits, and government compliance. 

Final Thoughts

Implementing a payroll system is essential for any growing business that wants to automate and streamline its payroll process, while avoiding compliance issues. Deciding between an ASO or PEO will depend on the size and scope of your company, and whether you have your own HR department. Once you’ve chosen one, you’ll need to consider the features and benefits different providers offer so you can decide which one best fits your specific needs and budget. With the right payroll system in place, you can ensure timely and accurate payment to your employees while freeing up time and resources to focus on other aspects of your business.

If you have questions about implementing a new payroll system, get in touch.