NAICS UNIVERSITY · Free research for insurance agents
Payroll Services
NAICS 541214 · United States · 2022 edition
This U.S. industry comprises establishments (except offices of CPAs) engaged in the following without also providing accounting, bookkeeping, or billing services: (1) collecting information on hours worked, pay rates, deductions, and other payroll-related data from their clients and (2) using that information to generate paychecks, payroll reports, and tax filings. These establishments may use data processing and tabulating techniques as part of providing their services.
Activities described by this code
Other activities to examine
Census classification reference
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Payroll service firms collect employee hours, pay rates, deductions, and related data from client businesses, then process and issue paychecks or direct deposits, generate payroll reports, and prepare or file payroll tax returns. Some firms also handle garnishments, benefits deductions, new-hire reporting, and year-end W-2 production. Client data may be handled via secure portal, manual submission, or integrated software platforms.
Questions to investigate
- What is the total number of client companies, and approximately how many total employees are processed across all clients?
- Does the firm handle payroll tax filings directly, or does it provide data for clients to file themselves?
- Are any client funds — tax escrow, ACH batches, or garnishment accounts — held by the firm, even temporarily?
- Does the firm offer any PEO, co-employment, HR outsourcing, or benefits administration services alongside payroll?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.