How Much Does It Cost to Outsource Payroll, and Is It Worth It?

Unless you love spreadsheets, tax codes, and staying up late wondering if you remembered to file that W-2, chances are you've thought about outsourcing payroll at least once.

But then the big questions hit: How much does it actually cost to outsource payroll? And is it really worth it?

If you're a small or growing business trying to do more with less, this guide is for you. At nTech, we help companies streamline operations, including workforce management and payrolling solutions, so you can focus on what really matters: growth.

Let’s break down what outsourced payroll through an Employer of Record (EOR) actually looks like, what you get in return, and whether it’s the right move for your business.

What Is Outsourced Payroll?

nTech’s payroll solution isn’t a traditional payroll provider (e.g., ADP, Paycom, or QuickBooks). We operate as an Employer of Record (EOR), which means we go beyond simply cutting checks.

When companies partner with us, we become the legal employer for their contingent workers. This:

• Reduces the risk of worker misclassification
• Ensures compliance with labor laws
• Simplifies operations on your end
• And more

It’s a comprehensive service designed to remove friction, mitigate risk, and let you scale with confidence.

What Does It Cost?

The cost of EOR-based payrolling varies depending on your workforce size, engagement structure, and compliance needs. We work with you to come up with a comprehensive plan and pricing. Here’s what typically factors into the equation:

• Worker classification & onboarding
• Tax withholding & employer contributions
• Compliance with local, state, & federal labor laws 
• Benefits administration 
• Secure payroll processing & direct deposit
• Time & attendance tracking
• Year-end tax documentation (e.g., 1099s, W-2s)

In short, it’s not a one-size-fits-all subscription; it’s a tailored solution that handles everything from onboarding to offboarding.

If you're curious about how this might look for your team, reach out to us for a custom quote based on your workforce needs.

In-House Payroll vs. EOR Payroll

Sure, outsourcing payroll comes at a cost, but so does keeping it in-house. Here's what in-house payroll might be costing you:

In-House Costs:

• Your (or your team’s) time spent processing payroll
• Payroll software & system upkeep
• Staying up to date on tax law changes
• Risks of compliance errors (& penalties)
• Stress and time lost during year-end tax prep

Let’s say your admin assistant spends 10 hours/month on payroll, and they earn $25/hour. That’s $250/month in labor alone, not including software or the cost of a potential compliance issue. 

What You Gain with an Employer of Record

Outsourcing payroll to an Employer of Record (EOR) model isn’t just about convenience; it’s about unlocking real business value:

• Compliance Confidence

We take on the responsibility of being the legal employer for your contractors, reducing misclassification risk and ensuring all labor laws are followed.

• Time Back

Say goodbye to calculating hours, filing taxes, or managing benefits. You gain hours back each month to focus on strategy and growth.

• Worker Experience

We ensure that workers are paid accurately, on time, and in compliance with all relevant regulations. That’s good for morale, retention, and your reputation.

• Scalable Infrastructure

Whether you’re hiring 5 or 50 contractors, our infrastructure grows with you, without the headache.

• Secure Systems

Our payroll services are backed by enterprise-grade security, fraud protection, and compliance support.

Is It Worth It?

Ask yourself:

• Are payroll and compliance eating up too much of our time?
• Are we fully confident in how our contractors are classified?
• Have we ever made a payroll or tax error?
• Do we need a more scalable workforce solution?

If the answer is yes to any of those, it’s probably time to look into our EOR payroll support.

Getting payroll right may feel like a back-office task, but it creates a ripple effect throughout your business. From smoother operations to happier teams and fewer legal risks, it’s a smart move that pays off fast.

How Staffing Ties In

Thinking about payroll outsourcing? It might also be time to revisit your staffing strategy.

At nTech, we combine talent acquisition with payrolling to give you a fully integrated workforce solution. That means:

• Pre-vetted, ready-to-go talent
• Contractor, contract-to-hire, and direct hire options
• Onboarding, compliance, payroll, and benefits, all handled
• A single partner for your workforce & back-office needs

You focus on growth. We’ll handle the rest.

nTech Simplifies Payroll

Outsourcing payroll doesn’t just save time or reduce risk. It helps you grow with confidence.

Still unsure?

• The cost? Flexible and tailored.
• The value? Significant.
• The peace of mind? Priceless.

Ready to offload the back office and focus on what matters most? Let’s talk. Whether you need payrolling support, workforce solutions, or both, we’ve got your back.