What Are the Types of Payroll?

by Sean Dixon

payroll services

There are several types of payroll services that you can choose from. Some are in-house, and others are outsourced. You should know the differences between these services to choose the right one for your company. These types include Excel-based payroll and commission-based payroll.


In-house payroll processing is an option for businesses that want to cut costs or have more flexibility. The process involves a company’s in-house payroll person responsible for processing timesheets, cutting checks, and making direct deposits. The company can customize the entire process to meet the needs of its employees. In-house payroll personnel is also responsible for maintaining payroll records.

An in-house payroll system can provide more accurate data and ensure that there is only one version of the information. This ensures that there are very few inaccuracies in employee pay. It can also keep track of new starters, pay raises, and other important employee documents.

While in-house payroll is ideal for organizations that prefer full control and visibility over their payroll process, it can also come with problems. For one, in-house payroll can be complicated, and any error can seriously affect your business. The system and the person running it are critical to the success of the process.


Outsourcing payroll functions can be a good option for companies worried about compliance issues. This service can help reduce the company’s liability and the risk of tax code violations. With the help of payroll software, the business can concentrate on other aspects and let the provider handle the payroll details. The service can also take care of the reporting and distribution of wages and payments to employees and other third parties.

Payroll is one of the most complicated functions in any company, but outsourcing can help alleviate this burden. Payroll is particularly complicated in international businesses as there are often regional variations. For example, some countries require businesses to pay holiday bonuses while others do not. In addition, payroll laws vary by state. For example, while some states require monthly payrolls, others require quarterly or yearly payrolls. By outsourcing payroll, businesses can avoid these problems and avoid penalties.

Outsourcing payroll can also reduce expenses for the company. Payroll processing in-house requires computer equipment, payroll software, and a lot of training. Additionally, the company must remain updated on new tax rules and personnel changes. Missing payroll deadlines could expose the business to legal liabilities. Outsourcing payroll is especially beneficial for companies with employees who work different hours and work irregular schedules.


An Excel-based payroll management solution is a great way to handle payroll for your business. Not only is this type of payroll software easy to use, but it also saves you a lot of time. Instead of spending hours putting together reports and calculations, you can insert numbers into the spreadsheet. The software will then do all of the calculations for you.

The first step in using Excel for payroll is to open a blank Excel spreadsheet. To do this, open a new window and type the word “Excel” into the search box. Next, double-click the match to open the spreadsheet. Then, save the file in the location you want. After saving, you can add your employees’ payroll information to the file.

Once you’ve entered the details for each employee, you can use Excel for all the other steps in payroll processing. This can include salary calculations, deductions, and much more. In addition, you can also use Excel to visualize the data for easy understanding.


Commission-based payroll structures differ from salary-based structures in several ways. The first is that the employees are paid based on the percentage of the company’s sales, not on a base hourly wage. This way, they can adjust their pay based on changes in their cash flow and operating costs.

Another benefit of commission-based payroll is that it helps control payroll expenses. It also develops proactive and motivated employees. While some managers complain that commission-based payrolls don’t motivate their workers, they can help improve the situation by clarifying expectations and creating systems that reward accountability and teamwork. However, commission-based payroll systems are not sustainable long-term.

Another benefit of commission-based payroll software is its ability to manage employees and commissions. When commissions are calculated, employers must consider several things, including commission plans, taxes, and quotas. This can be a very complicated calculation and requires an automated solution. Commission-based payroll software can make calculations easier.

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