U.S. CPA Firms’ Compliance Concerns in Outsourced Accounting 

26 September 2025

• Payroll outsourcing firms help CPAs and accounting practices offload compliance, simplify processing, and scale client services without building internal payroll teams. 

• Specialist and mid‑sized providers offer customizable payroll, tax filing, benefits integration, and client‑white labeling. 

• Choose a partner by assessing compliance credentials, security, integration with your accounting stack, scalability, and client service alignment. 

CPA firms and accounting practices in the U.S. are increasingly under pressure to deliver complete financial services, including tax, audit, advisory, and payroll. Clients expect accurate, timely payroll execution, tax filings, and benefits administration. However, maintaining a full in‑house payroll infrastructure is expensive, compliance‑prone, and resource-intensive. 

That’s why many firms now turn to outsourced payroll or payroll co‑sourcing. By delegating payroll tasks to a specialized partner, firms can ensure accuracy, reduce risk, and provide that service as part of their suite—without hiring internal payroll experts. 

In this blog, we’ll explore the key benefits driving the shift, how to pick the right payroll outsourcing partner, and (most importantly) a curated list of 11 payroll outsourcing companies recommended for U.S. CPAs and accounting firms. You can use this as a guide to vet providers or shortlist candidates. 

Why CPA / Accounting Firms Outsource Payroll (Key Benefits) 

1. Compliance & Regulatory Risk Management 
Payroll involves multi-layered tax rules (federal, state, local), benefits, withholding, and reporting. Outsourcing to specialists mitigates the risk of penalties or misfiling. 

2. Operational Efficiency & Accuracy 
Dedicated payroll firms have systems, expertise, and checks to reduce errors, automate calculations, and manage edge cases (garnishments, multi-state, contractor payments). 

3. Scalability & Client Offering Expansion 
Rather than building payroll teams, accounting firms can bundle payroll services for clients, scaling the client base without incremental overhead. 

4. Cost Control & Predictable Pricing 
Outsourcing converts fixed payroll staffing costs into a predictable per-client or per-payroll expense. You avoid recruiting, training, benefits, and turnover costs. 

5. Better Focus on Advisory Work 
With payroll handled externally, your team can focus on higher-value functions—financial analysis, planning, compliance advising, rather than transactional tasks. 

How to Choose the Right Payroll Outsourcing Partner 

When evaluating payroll providers for your firm, prioritize: 

• Regulatory & Compliance Expertise: Ability to handle multi-state payroll, tax filings, year-end W‑2/1099, and employer liabilities. 

• Security & Certifications: SSAE/SOC 1 or 2, ISO, encryption, data custody, disaster recovery. 

• Technology & Integration: API / connector with your accounting software (QuickBooks, Xero, NetSuite, etc.), document portals, mobile access. 

• Scalability & Flexibility: Ability to scale with your client load, add or remove clients easily, support for small to large payroll volumes. 

• White-Label / Co-Sourcing Capability: Offering payroll under your brand, or seamlessly co‑sourced so the client sees your firm as the provider. 

• Client Support & SLA Transparency: Service level commitments on processing times, issue resolution, and payroll cycles. 

Top 11 Payroll Outsourcing Companies for U.S. CPAs & Accounting Firms (2025) 

1. QX Accounting Services

Key Payroll Services: U.S. payroll processing, multi-state filings, W-2 and 1099 preparation, payroll tax compliance, client communication, and white-labeled delivery.
Location: Delivery center in India with U.S. client teams.
Best For: CPA firms looking to outsource payroll while retaining client relationships. QX offers secure delivery (SOC 2, ISO 27001), FTE or task-based models, and integration with common payroll systems.

2. CapActix Business Solutions

Key Payroll Services: U.S. payroll processing, paycheck calculations, tax filing, timesheet support, and employee records management.
Location: India
Best For: Firms that want end-to-end accounting and payroll support with flexible staffing or per-task models.

3. Datamatics CPA

Key Payroll Services: U.S. payroll processing, tax calculations, employee onboarding data, pay slip generation, and filings.
Location: India
Best For: CPA firms that already outsource tax or bookkeeping to Datamatics and want payroll added under the same umbrella.

4. Entigrity (now MYCPE ONE)

Key Payroll Services: Offshore staffing for payroll processing, payroll accounting, pay run validation, and client payroll portals.
Location: India (U.S. liaison office in Texas)
Best For: CPA firms looking to build an offshore team for recurring payroll tasks without committing to a full BPO model.

5. TOA Global

Key Payroll Services: They provide outsourced accounting staff, and their services, “Accounts Payable, Receivable, and Payroll,” are listed among tasks their bookkeepers can handle.
Best For: Firms that want flexible offshore staffing for payroll tasks bundled with accounting/bookkeeping support.

6. D&V Philippines

Key Payroll Services: Payroll processing, tax computation, compliance filings, payslip management, and statutory reporting.
Location: Philippines
Best For: Firms that want reliable payroll delivery and compliance support for U.S. or multi-country operations from a Philippines-based team.

7. IRIS Software Group

Key Payroll Services: Managed payroll, tax compliance, year-end filings, and payroll bureau support.
Location: Global firm with U.S., UK, and India delivery.
Best For: Firms looking to outsource recurring payroll activities or run a payroll bureau model with compliance handled externally.

8. BruntWork

Key Payroll Services: End-to-end payroll outsourcing including gross-to-net calculations, employee record management, and direct deposit setup.
Location: Philippines
Best For: Small to mid-sized CPA firms seeking affordable offshore payroll services with straightforward engagement models

9. Mindspace Outsourcing

Key Payroll Services: Payroll processing, wage calculations, federal/state/local tax compliance, year-end reporting (W-2/1099), and client payroll reporting.
Location: India (with U.K. and U.S. client base)
Best For: Small to mid-sized CPA firms looking to outsource payroll, bookkeeping, and tax tasks to the same offshore team.

10. Mercans

Key Payroll Services: End-to-end payroll processing, compliance with U.S. and international payroll laws, tax filing, employee pay management, Employer of Record (EOR) services, and payroll software integration.
Location: Global delivery with operational hubs in India and the Middle East.
Best For: CPA firms managing clients with international employees, remote contractors, or expanding into multiple jurisdictions.

11. Outsource2India

Key Payroll Services: U.S. payroll processing, direct deposit setup, pay stub generation, payroll tax calculations, quarterly/annual tax filings, employee benefits processing.
Location: India-based delivery with a global clientele.
Best For: CPA firms seeking a cost-effective offshore provider to handle routine payroll processes, tax filing support, and employee pay cycles as part of a broader back-office outsourcing relationship.

What’s the difference between co‑sourcing payroll vs full outsourcing? 
Co‑sourcing means your firm and the payroll provider share tasks. For e.g., you handle client inputs, they handle payroll calculations and filings. Full outsourcing means the provider takes end-to-end responsibility (data, payroll, tax, reporting). 

Can outsourced payroll handle multi‑state clients? 
Yes, top providers support multi‑state payroll and state tax filings and handle filings such as SUI, SDI, local taxes, etc. Always confirm their coverage for your client’s states. 

How do I maintain client control if outsourcing payroll? 
Use white-label or co‑sourcing models. The provider’s work is delivered under your firm’s branding. You remain client-facing and maintain oversight. 

Is outsourcing payroll secure and compliant? 
Yes, if your provider uses certified security standards (SOC 1/2, ISO), encrypts data, and operates with proper tax credentials. Always review their security audits and compliance guarantees. 

When should a firm outsource payroll? 
When payroll becomes a burden, when you want to add payroll as a service for clients, when state coverage is complex, or when regulatory risk becomes significant. 

Wrapping Up

Outsourcing payroll is a practical way for CPA and accounting firms to expand their client offerings, reduce operational load, and ensure year-round compliance. Managing payroll internally often creates bottlenecks, especially when firms are already stretched across tax, bookkeeping, and advisory work. Outsourcing helps remove that pressure by providing trained specialists, secure infrastructure, and predictable turnaround times. 

With rising expectations around payroll accuracy, employee self-service, multi-state compliance, and timely filings, it is becoming more difficult to handle everything in-house without increasing staff costs. A reliable payroll outsourcing partner can help firms maintain accuracy, stay ahead of tax law changes, and meet client SLAs without overextending internal teams. 

The 11 companies listed above offer different models and strengths. Some focus on small business simplicity, others on global contractor payments or enterprise-level compliance. The right fit depends on your client base, your tech ecosystem, and your firm’s service goals. Aligning these factors will help your firm deliver better payroll outcomes with less internal effort.

Why QX as Your Payroll Outsourcing Partner (QX Differentiator) 

• Teams trained in U.S. payroll regulations, CPA workflows, and multi-state tax rules 
  QX payroll specialists understand the specific compliance requirements accounting firms must meet across industries. 

• SOC 2 Type II and ISO 27001 certified environment 
  Data security and confidentiality are built into every step of the delivery process. 

• Flexible engagement models based on your needs 
  To match seasonal workloads and ongoing delivery, choose between per-client, full-time equivalent (FTE), or hybrid models. 

• White-label capability for client-facing consistency 
  Payroll reports, compliance documents, and communication can be delivered under your firm’s branding. 

• Experienced with major payroll platforms 
  QX teams work with systems like ADP, Gusto, QuickBooks Payroll, Paychex, and other tools commonly used by U.S. firms. 

• Fast turnaround with scalable support 
  Overnight processing ensures the timely delivery of payroll outputs, allowing you to meet client deadlines without internal delays. 

QX Accounting Services is structured to help CPA firms add or enhance payroll services without building out new teams or increasing risk. With trained payroll professionals, secure systems, and flexible models, QX is a dependable partner for firms ready to grow their client payroll offering. 

Divya Ramaswamy

Combining creative flair with a solid foundation in research-oriented content marketing, Divya assists accountants in understanding and navigating pressing industry issues. With a knack for distilling complex data into actionable advice, she helps professionals make informed decisions to enhance their practices.

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