The payroll outsourcing checklist: 20 questions to ask providers

Coverage and compliance

1. Which countries, states or provinces do you cover yourselves, and which through partners?
2. Which filings do you submit for us, and which stay with us?
3. How do you keep up with changes to tax rates and rules?
4. Who pays penalties if you make a mistake?
5. Can you handle pensions or retirement plans, benefits and statutory pay?

Process and service

1. What are the cut-off dates for changes each pay period?
2. How do we submit starters, leavers and changes?
3. Will we have a named contact, and what are your response times?
4. Do employees get self-service payslips and year-end forms?
5. How do you handle off-cycle runs and corrections?

Data and security

1. Where is our data stored and processed?
2. Do you hold ISO/IEC 27001 certification or a SOC 2 report?
3. Will you sign a data processing agreement (required under the GDPR)?
4. How is access controlled and logged?
5. How do we get our data back if we leave?

See outsourcing and the GDPR.

Systems and price

1. Does it integrate with our HR, time-tracking and accounting software?
2. What reports do we get for our accountant?
3. What’s the price per employee, per run, for set-up and for year-end?
4. What’s the minimum term and notice period?
5. Can you support us if we hire in a new country?

Next steps

Shortlist two or three providers and send each the same brief, created with our free brief builder. Then compare payroll providers side by side, and check the numbers with the in-house vs outsourcing calculator.

Last updated: 8 October 2026