Payroll is one of the most important parts of running a business—but it's also one of the most complicated. From tax filings to compliance checks, even a small mistake can create significant risks. That's why more businesses are turning to managed payroll services and Employer of Record (EOR) solutions to simplify the process.
Managed Payroll Services Explained
What is managed payroll? This involves outsourcing payroll operations to a trusted third-party provider. Instead of handling everything in-house, you work with experts who take on payroll processing, compliance, and reporting for you. A managed payroll service provider takes the time-consuming tasks off your team's plate, so you can focus on growing your business.
Did you know: A staggering 86–87% of HR leaders cite international labor law compliance as their top challenge—whether they're already operating globally or planning to do so. This highlights why managed payroll and EOR solutions are in high demand—especially for businesses expanding overseas.
What Does a Managed Payroll Solution Include?
Companies that offer managed payroll:
Calculate wages, salaries, and deductions.
Handle payroll tax filings and remittances.
Issue payments and distribute payslips.
Stay up-to-date with changing employment laws and payroll regulations.
Atlas goes above and beyond. As an integrated EOR solutions provider, Atlas not only processes payroll but also takes on compliance risk, manages HR and benefits, and handles end-to-end employment in 160+ countries so that you can expand globally without setting up entities.
How Does it Work?
While every provider has its own systems and workflows, the core process of managed payroll usually follows the same steps:
Selecting a Payroll Partner: Businesses choose a provider that aligns with their specific needs.
System Setup: The provider sets up payroll in their platform and integrates with the client’s HR or finance systems.
Data Transfer: Employee details, wage information, and benefits data are securely shared with the provider.
Parallel Payroll Run: A test run is performed to ensure accuracy before going live.
Payroll Processing: The provider calculates salaries, deductions, benefits, and withholdings accurately and efficiently.
Validation & Compliance: Results are reviewed, with all applicable taxes, social security, and legal requirements taken into account.
Payments & Payslips: Employees are paid on schedule, with payslips distributed electronically or in hard copy.
Tax Filing & Reporting: The provider files payroll taxes with the appropriate authorities and delivers compliance reports.
Record-keeping: Accurate payroll and tax records are maintained for audits and reporting purposes.
Ongoing Support: Providers offer continued advice and troubleshooting to ensure smooth payroll operations.
Fully Managed Payroll vs. Partial Support
Not all providers offer the same level of service. You'll often hear two terms used: fully managed payroll service and partially managed payroll.
Fully managed payroll services mean the provider takes care of everything from start to finish, including payroll processing, compliance, reporting, and filings.
Partially managed payroll solutions handle specific tasks, such as wage calculations or payroll tax submissions, while your HR team manages other tasks.
Most growing companies prefer fully managed payroll or EOR service providers because they reduce errors, increase efficiency, and provide consistent compliance across multiple locations.
Benefits of Managed Payroll Services
Moving to payroll managed services has clear advantages. Here are the top benefits businesses experience:
Save Time and Money: With payroll managed service providers, your team regains valuable time while reducing the costs associated with maintaining a complete in-house payroll staff.
Enhance Compliance and Risk Management: Many providers offer payroll tax management services, which mitigate the risk of costly penalties and ensure compliance with local laws.
Boost Accuracy and Efficiency: A strong provider ensures everyone gets paid correctly, every time.
Gain Access to Better Technology: EOR providers like Atlas combine human expertise with advanced payroll platforms, allowing you to track everything in one dashboard.
Scale With Your Growth: With global payroll solutions and an EOR partner, managed payroll solutions scale with you so you can hire and pay employees wherever you plan to expand.
Where EOR Fits Into Payroll
While traditional managed payroll services are effective for some companies, global expansion introduces an additional layer of complexity. Atlas' EOR solution combines payroll processing with legal compliance, local hiring support, and employment law expertise in 160+ countries. Payroll isn't separate—it's an integral part of how we manage your employees globally.
Unlike standard outsourcing, Atlas HXM acts as the legal Employer of Record, taking on the risk and responsibility of employment. This makes EOR solutions the better choice for businesses expanding into new markets without setting up local entities. You can hire fast, pay compliantly, and manage payroll globally in one platform.
How Atlas Stands Out
When compared to other EOR companies, Atlas offers a unique advantage: we own our entities, which means we don't rely on third-party intermediaries. That gives you more control, more compliance confidence, and a smoother experience.
Through one dashboard, you can:
Run payroll in 160+ countries.
Review and approve payroll.
Track expenses and benefits by country.
Access reporting and insights to plan your next move.
With Atlas, payroll isn't just a function—it's built into the EOR framework to support your global growth.
Partner with Atlas to Simplify Payroll and Global Expansion
Payroll is too important to get wrong—and too complex to manage manually at scale. With Atlas, you get more than payroll processing; you get a partner committed to helping you scale, stay compliant, and support your people wherever they are. If you're considering switching to outsourced payroll providers, don't compromise on compliance or employee experience.
Contact Atlas HXM today to explore our EOR and payroll solutions.
FAQs About Managed Payroll
Here are some frequently asked questions about managed payroll.
Who should use a managed payroll?
Any business seeking to save time, mitigate compliance risk, or expand internationally can benefit. Startups, growing companies, and large enterprises all use these services.
When should payroll managed services be used?
Companies use payroll managed solutions when payroll becomes too complex or time-consuming to handle in-house, like managing compliance, multi-location teams, or global expansion.
What is the cost of managed payroll services?
The cost of managed payroll services varies depending on the provider, the number of employees, and the level of support required—most charge either a flat monthly fee per employee or a percentage of payroll.
How does an EOR payroll solution compare to managed payroll?
An EOR payroll solution combines payroll processing with global compliance and legal employment support. That makes it more comprehensive, especially for businesses expanding into new countries.