Many employers choose to outsource their payroll to a service provider. Payroll integration is when an employer lets that same provider handle related functions such as time and attendance, 401(k) contributions and insurance premiums.
By integrating these other functions with payroll, employers avoid entering the same data over and over again and may dramatically reduce errors. Having all the information in one place can also save time when reporting information to government agencies. For example, 86% of respondents to a recent ADP survey said they saved time by integrating retirement services with payroll. 
Payroll integration is taking on greater importance thanks to the rise of big data. Companies that struggle with storing, tracking and protecting an ever-growing cache of employee data may find that payroll integration reduces the burden and eases access to vital information—for both the employer and the employee.
 Service Integration Analysis – Small Market; Retirement Insights, LLC, February 2018.