Why Accounting Firms Are Rethinking Payroll in 2025—And What That Means for Your Firm

For many accounting firms, 2025 is shaping up to be a turning point—especially when it comes to payroll. Compliance rules are changing. Talent is hard to come by. And clients are expecting more than ever.

In the middle of it all, firms are taking a closer look at how they deliver payroll—and asking if there’s a better way. If you’ve been feeling the strain, you’re not alone. Let’s look at what’s changing, what’s at risk, and what forward-thinking firms are doing to adapt.

Payroll Isn’t Just a  “Nice to Have” Anymore

It’s easy to think of payroll as a value-add—something extra you offer clients to round out your services. But for your clients, payroll is anything but extra. It’s essential.

They rely on you not just to crunch the numbers, but to help them manage one of their biggest business responsibilities: paying their people. And that job has gotten a lot more complex. Clients want modern tools, mobile access, and peace of mind that payroll is integrated with time tracking, compliance, and employee management.

In other words, they expect more—and rightly so.

If delivering payroll feels like it’s pulling your team away from core tax or advisory work, it might be time to look at a better way of managing it—one that combines modern tech with real, human support.

Payroll Done Poorly Can Cost You More Than Time

As your client base grows, so do the risks. One missed deadline. One unresolved notice. One slip in tax filing. These small missteps can lead to penalties, reputational damage, and even lost clients.

Even when everything’s going smoothly, payroll can quietly drain your firm’s energy. Long hours. Stressful year-ends. Disproportionate time spent on low-margin work. If it’s starting to feel like payroll is costing more than it’s giving back, that’s a sign worth listening to.

Five Signs It’s Time to Outsource Payroll

Not sure if it’s time to bring in help? If any of the following sound familiar, your team may already be feeling the weight:

• You’ve had a close call with a payroll-related penalty 
• Your team is stretched too thin 
• You’re spending more time than you’d like resolving tax notices 
• You get a lot of payroll-related questions from clients
• You dread year-end 

What Accounting Firms Want in a Payroll Partner in 2025

Outsourcing payroll doesn’t mean giving up control. In fact, with the right partner, it can feel like you’ve gained an extension of your own team.

Today’s firms are looking for more than a vendor—they want a partner who can scale with them, understand their needs, and help deliver a seamless client experience. Whether you want to remain client-facing or hand off the entire function, a strong managed payroll service (MPS) partner will adapt to your preferences.

That means:

• Hands-on onboarding to ensure accuracy and ease from day one
• Dedicated team members: a Payroll Analyst, Account Rep, and Onboarding Specialist you can count on
• Client support that feels in-house, not outsourced
• Technology that makes life easier, from self-service portals to integrations with time and HR systems

At IRIS, we support flexible payroll service models—from behind-the-scenes support to full white-label services or direct-to-client models. However you want to work, we meet you there.

The Internal Impact: Why Outsourcing Payroll Pays Off

The benefits of outsourcing payroll aren’t just operational—they’re transformational. Here’s what you can expect:

• More time for what matters. Free up staff to focus on high-value services like tax, advisory, and client relationship building.
• Less burnout. When your people spend less time on repetitive payroll tasks, they stay engaged—and they stay.
• Happier clients. Reliable, modern payroll support enhances your service offering and increases client loyalty.
• Better margins. Reduce overhead costs and avoid the compounding risks of doing everything in-house.
  

The impact is real. Just ask Hartmann Professional Services, who now deliver tailored payroll services to nearly 2,000 clients—with less internal strain, higher client satisfaction, and room to grow.

Choosing the Right Payroll Partner 

When it comes to selecting a payroll partner, look for one who truly understands the accounting firm perspective. That means:

• Integration with your existing tools
• A clear grasp of firm workflows
• Real-time updates and reporting
• A payroll specialist dedicated to your firm
• Flexibility—client-facing or back-office, as needed
• Bonus: Revenue-sharing opportunities

Done right, the right payroll partnership helps your firm run smarter, grow faster, and breathe easier.

IRIS Managed Payroll Services for Accountants

We’re here to help you deliver payroll with confidence, without sacrificing time, quality, or peace of mind. We’ll help you expand your services, delight your clients, and reduce the administrative weight on your team.

Ready to find a simpler way forward? Contact us today or download our guide: Choosing a Managed Payroll Partner: A Guide for Accounting Firms.