16 Biggest Payroll Companies in the US
In this article, we will be taking a look at the 16 biggest payroll companies in the US. To see more of these countries, you can go directly to see the 5 Biggest Payroll Companies in the US.
In a rapidly transforming economy, many businesses are finding it difficult to allocate too many resources to in-house human resources departments. Small and medium-sized businesses may be the most troubled by their growing human resources needs, resulting in a demand for companies that can provide human capital management and human resources-related services to bridge the gap between the requirements of these companies and their means. As we mentioned in one of our previous articles on the payroll service-providing space, this demand has resulted in the creation of payroll companies that help alleviate part of the burden these businesses are straining under, resulting in the payroll industry itself now being worth billions of dollars.
Companies operating within this industry, such as Automatic Data Processing, Inc. (NASDAQ:ADP), Paylocity Holding Corporation (NASDAQ:PCTY), and Intuit Inc. (NASDAQ:INTU), have been making the most of the opportunity that has been presented to them as more and more businesses today are beginning to seek external payroll providers. Outsourcing payroll-related services can offer many benefits to these businesses, especially those that are trying to grow, as Automatic Data Processing, Inc. (NASDAQ:ADP) itself explains in an article on its website. The company claims that by outsourcing payroll, businesses can save time, minimize payroll-related errors, improve their security, maintain compliance, reduce costs, and facilitate employee self-service, among more.
How Payroll Companies Can Support Businesses
Apart from the obvious service payroll companies provide, which is their help in paying employees, most of these companies also offer a range of other services that can help run businesses efficiently while driving up their productivity. These companies often aid businesses with onboarding and recruitment processes, alongside providing employee benefits, such as health insurance and much more. By taking human capital management into their own hands, payroll companies can take away a large chunk of the pressure small and medium-sized businesses, in particular, may be under.
The market for these companies has always been large, as a report by Allied Market Research shows. It mentions that the global payroll outsourcing market was worth about $9.9 billion in 2021. This figure was projected to grow to $19.5 billion by 2031, growing at a compound annual growth rate of 7.2% between 2022 and 2031. The report also mentions that the payroll industry was positively impacted during the COVID-19 pandemic, leading to further growth. Since organizations had to shift to working online during the pandemic, human resources and payroll managers found it increasingly difficult to meet their goals, leaving the path open for payroll companies to offer their cloud-based services.
The report also elaborates further on how small businesses, in particular, can benefit immensely by outsourcing their payroll operations. By turning to companies that are dedicated to handling payroll and other related services, small businesses can free up time for themselves to focus on their core business. Additionally, since many payroll companies provide a centralized database for payroll and attendance information, businesses can use the information they receive to develop strategies that can help them increase the productivity of their employees.
As the payroll industry continues to grow, the method of manually recording employee details and sending out their payments is steadily becoming outdated. Most businesses today are opting for third-party payroll service providers in the interest of saving time and driving up productivity. This environment is thus enabling the rapid growth of the payroll industry, leading us to compile a list of the biggest payroll companies operating in the US today, so stakeholders can identify key players in this market.
Our Methodology
We selected some of the biggest payroll companies in the US for our list below. We used market capitalization as a metric for public companies and estimated valuations as a metric for private companies. The companies are ranked based on these metrics, from the lowest value to the highest value.
Biggest Payroll Companies in the US
16. Justworks
Estimated Valuation: $2 billion
Justworks is a software company that works to help businesses handle human resources-related tasks like payroll, benefits, staffing, and more. The company is based in New York
This company is the best payroll choice for small businesses that are strained because of their human resources needs. Justworks is more advanced than other payroll software because it helps manage employee training, compliance, taxes, and more.
15. BlackLine, Inc. (NASDAQ:BL)
Market Capitalization: $3.27 billion
BlackLine, Inc. (NASDAQ:BL) is a payroll company that works on automating and streamlining financial close processes for businesses. The company was founded in 2001 and is based in California.
BlackLine, Inc. (NASDAQ:BL) helps businesses administer their payrolls and other daily aspects of pay programs with a focus on legal compliance. In 2022, the company's revenue stood at $523 million, and it has over 1,000 employees.
BlackLine, Inc. (NASDAQ:BL), like Automatic Data Processing, Inc. (NASDAQ:ADP), Paylocity Holding Corporation (NASDAQ:PCTY), and Intuit Inc. (NASDAQ:INTU), is among the largest payroll companies operating within the US today.
14. Paycor HCM, Inc. (NASDAQ:PYCR)
Market Capitalization: $4.14 billion
Paycor HCM, Inc. (NASDAQ:PYCR) is a payroll company based in Cincinnati, Ohio, and was founded in 1990. It is an all-in-one payroll service, human resources information system, and human capital management solution.
The company helps businesses deal with human resources-related takes such as hiring, learning and development, and time tracking, alongside payroll. Paycor HCM, Inc. (NASDAQ:PYCR) is a good payroll option for small to midsize businesses as long as they have an expansive budget.
13. TriNet Group, Inc. (NYSE:TNET)
Market Capitalization: $5.84 billion
TriNet Group, Inc. (NYSE:TNET) is a professional employer organizations company based in Dublin, California. It offers its cloud-based services to small and medium-sized businesses.
The company has over 3,600 employees, and its revenue in 2022 was $4.9 billion. TriNet Group, Inc. (NYSE:TNET) works to provide payroll services alongside access to big-company benefits, a 401(k) plan, and strategic human resources support services, among more.
12. Gusto, Inc.
Estimated Valuation: $9.5 billion
Gusto, Inc. is a software company offering cloud-based payroll, benefits, and human resource management software. The company is based in San Francisco, and it has 2,400 employees.
Founded in 2011, Gusto, Inc., formerly known as ZenPayroll, Inc., now serves over 300,000 businesses across the US. The company claims to process tens of billions of dollars through its payroll operations while also providing employee benefits, including health insurance.
11. Ceridian HCM Holding Inc. (NYSE:CDAY)
Market Capitalization: $10.37 billion
Ceridian HCM Holding Inc. (NYSE:CDAY), a payroll services company based in Minneapolis, Minnesota, is next on our list. The company provides human resources software and services globally, including in the US, Canada, Europe, Australia, and Mauritius.
The company was founded in 2013, and since then, it has worked to develop human capital management software. The businesses that choose Ceridian HCM Holding Inc. (NYSE:CDAY) benefit from the company's recruiting, staff monitoring, payroll processing, and employee engagement services, among more.
10. Paylocity Holding Corporation (NASDAQ:PCTY)
Market Capitalization: $10.39 billion
Paylocity Holding Corporation (NASDAQ:PCTY) is a provider of cloud-based payroll and human capital management software. It is based in Illinois and was founded in 1997.
The company has 5,800 employees and is considered a "one-stop-shop" for companies looking for help with payroll, benefits, recruiting, and more. Paylocity Holding Corporation (NASDAQ:PCTY) also helps businesses reduce their compliance risk by automating time and attendance tracking.
9. Bill.com Holdings, Inc. (NYSE:BILL)
Market Capitalization: $11.89 billion
Bill.com Holdings, Inc. (NYSE:BILL) is based in San Jose, California, where it operates as a software company. It was founded in 2006 as Cashboard, Inc, but by 2018 it became known by its current name.
The company offers automated, cloud-based software for businesses looking for help with their financial operations. Bill.com Holdings, Inc. (NYSE:BILL) has over 2,200 employees, and it focuses on helping small businesses pay their employees and bills, among more.
8. Deel
Estimated Valuation: $12 billion
Deel is a payroll company based in San Francisco, California. The company is privately-held, and it works to provide payroll and compliance services to businesses.
Deel has 2,200 employees and works to aid companies expand their global presence by providing its global hiring, human resources, and payroll services.
7. Paycom Software, Inc. (NYSE:PAYC)
Market Capitalization: $18.54 billion
Paycom Software, Inc. (NYSE:PAYC) is an Oklahoma City-based online payroll and human resource tech provider. It is one of the first payroll companies to be fully online.
The company has 6,300 employees and was founded in 1998. Paycom Software, Inc. (NYSE:PAYC) markets its payroll and human resources software solutions to big and small businesses alike.
Like Automatic Data Processing, Inc. (NASDAQ:ADP), Paylocity Holding Corporation (NASDAQ:PCTY), and Intuit Inc. (NASDAQ:INTU), Paycom Software, Inc. (NYSE:PAYC) is one of the top payroll providers in the US.
6. Ultimate Kronos Group
Estimated Valuation: $22 billion
Ultimate Kronos Group is another private payroll company on our list. It has dual headquarters in Lowell, Massachusetts, and Weston, Florida.
The company has more than 15,000 employees. Ultimate Kronos Group had revenues of nearly $3.7 billion in 2022.
Click to continue reading and see the 5 Biggest Payroll Companies in the US.
Suggested articles:
Disclosure: None. 16 Biggest Payroll Companies in the US is originally published on Insider Monkey.
