Payroll service providers are companies that help businesses manage their employee payment processes. They handle tasks such as calculating wages, withholding taxes, and ensuring compliance with labor laws. By outsourcing payroll, companies can save time and reduce the risk of errors in their payroll systems. These providers often offer additional services, such as employee benefits management and tax filing. Using a payroll service can be especially beneficial for small businesses that may not have the resources to manage payroll in-house. Popular payroll service providers include ADP, Paychex, and Gusto.