National Payroll Week 2025: All About PEO Payroll Services

Quick look: It’s National Payroll Week, an important time to celebrate all the payroll professionals and the work they do to keep the country operating smoothly! Getting paid wouldn’t be possible without the people who make it happen, and this week highlights the essential role they play in the accurate and timely payment of workers. Here, we explore the importance of payroll, how PEO payroll services impact SMBs across the country, and all the other ways PEOs help businesses, too.

Each year after Labor Day, the American Payroll Association (APA) hosts National Payroll Week (NPW) to honor the hard work of the country’s over 160 million wage earners and the payroll professionals who get them paid accurately and on time.

According to the official website, National Payroll Week “highlights the achievements and partnerships between America’s employees, payroll professionals, and various government programs and agencies. During NPW, PayrollOrg celebrates payday and honors and celebrates the hard work and dedication of America’s workers and the payroll professionals who ensure paychecks are accurate and on-time for millions of employees.”

NPW’s official slogan is “America Works Because We’re Working for America®.” This phrase summarizes that the funds payroll professionals withhold from employees directly support government programs like Medicare, federal highway building and maintenance, social security, the military, and more. In fact, through payroll withholding, these experts contribute, collect, report, and deposit 70% of the U.S. Treasury’s annual revenue!

For those looking to learn more about their paycheck, National Payroll Week’s resource center is packed with tools, including an IRS tax withholding estimator, a paycheck calculator, a 401(k) calculator, and resources on social security benefits, direct deposit, employee work eligibility, child support, and paycheck management.

There are also plenty of ways for organizations to celebrate National Payroll Week. Consider the following six ideas provided by the APA:

1. Host a direct deposit drive or information booth to educate staff on their paychecks, benefits, W-4 Forms, etc. These tips can help them make the most of their hard-earned wages.
2. Take the “Getting Paid In America” survey (explore last year’s survey results here).
3. Sign your business up to be an official NPW supporter (for free).
4. Decorate your company’s payroll department with NPW merchandise.
5. Plan an NPW party with games, quizzes, PAYDAY candy bars, and more.
6. Take photos and show appreciation for your payroll team (and NPW) through companywide emails and/or social media posts.

PEO payroll services vs. payroll service providers: What’s the difference?

Payroll is a must-have for every business, but how you manage it can look very different depending on your resources. Some small- and medium-sized businesses (SMBs) handle payroll in-house, which can stretch already-limited teams. Others turn to outside help either through a payroll service provider or a professional employer organization (PEO).

At first glance, both options seem similar: they can process payroll and help with compliance. But the differences between them are important to understand if you want the best fit for your business.

Payroll at a PEO

Two main factors set PEO payroll services apart from a payroll service provider: the breadth of their services and their shared legal responsibility with you.

Some PEOs, like ExtensisHR, are IRS-Certified. An IRS Certified PEO (CPEO) routinely passes strict audits and maintains tax compliance, rigorous financial standards, and routine background checks to uphold their certification.

Why does this matter? When working with a non-certified PEO, the IRS views that both the PEO and the SMB are jointly liable for the payment of payroll taxes. However, the IRS views a CPEO as solely liable for employment tax payments.

Beyond providing payroll administration and compliance support, PEOs offer SMBs a variety of other human resources (HR) services, including dedicated account management and:

• HR guidance
• Benefits administration and management
• Risk and compliance services with expertise in state unemployment, workers’ compensation, risk management and workplace safety, among other critical areas
• Comprehensive recruiting services (included in ExtensisHR’s PEO solution at no additional cost)

Through economies of scale, PEOs can also help SMBs access better employee benefits at potentially better prices. And because you can offload many HR tasks, PEOs free up valuable time for business leaders to focus on growth.

One final key difference between a PEO and a payroll service provider is that, as the employer of record (EOR), a PEO shares legal responsibility with their customers. This means they are motivated to protect and minimize risks to your business.

Payroll at a payroll service provider

Payroll service providers focus on one thing: processing payroll. However, most payroll service providers only handle payroll administration and compliance and provide no additional HR services.

Also, support can be less personal. Often, if a staff member has a question, they usually need to go through their employer first, who must then contact the payroll service provider.

And unlike PEOs, payroll service providers do not share legal responsibility with their customers, meaning SMBs are the only party to bear the burden if payroll tax mistakes occur. Because of this, partnering with a payroll service provider doesn’t necessarily minimize your business or compliance risk.

Which one is right for you?

If your only need is basic payroll processing, a payroll service provider may get the job done. But if you’re looking at the bigger picture, PEOs may provide greater, long-term value through their competitively priced benefits plans, ability to manage HR and recruiting on your behalf, and their stake in minimizing your business’s risk and ensuring its compliance.

Payroll, HR, and more, all in one place

Each business has their own needs, but for many SMBs, partnering with a PEO offers the most complete solution.

A CPEO, like ExtensisHR, provides everything you’d expect from a total payroll solution, including:

• Payroll setup and processing
• Paid time off (PTO) set up
• Distribution of checks, direct deposit, and payday cards
• Payroll tax processing, compliance, and auditing

But unlike many payroll service providers, ExtensisHR offers additional services, including HR guidance, benefits administration and management, complimentary recruiting services, and risk and compliance expertise—all with a dedicated service team.

And with ExtensisHR’s Work Anywhere® platform, SMB leaders and their teams can securely manage HR tasks anytime, anywhere, from downloading paystubs to enrolling in employee benefits and connecting with customer support.

It’s National Payroll Week, but ExtensisHR’s PEO payroll services simplify it all year long. Learn more about our payroll solutions or contact us today to get started.