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NAICS Code· 541214

NAICS 541214: Payroll Services

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. Cross-References.Show more

NAICS 541214 – Payroll Services encompasses the specialized provision of payroll processing, tax compliance, wage reporting, benefits administration, and related human capital financial management services to government entities. These services ensure accurate and timely disbursement of employee compensation in alignment with federal, state, and local regulations, including FICA, FUTA, and IRS reporting requirements.

21
Active Contracts
$2.6M
Total Obligations (12mo)
18
Awarded Contracts (12mo)
9
Contractors Awarded (12mo)
2
Median Bidders per Award
-89.0%
YoY Growth

Industry Spending Overview

Federal obligations, top contractors and agencies, and related industry codes for NAICS 541214.

AI Industry Description

NAICS 541214 – Payroll Services encompasses the specialized provision of payroll processing, tax compliance, wage reporting, benefits administration, and related human capital financial management services to government entities. These services ensure accurate and timely disbursement of employee com...

NAICS 541214 – Payroll Services encompasses the specialized provision of payroll processing, tax compliance, wage reporting, benefits administration, and related human capital financial management services to government entities. These services ensure accurate and timely disbursement of employee compensation in alignment with federal, state, and local regulations, including FICA, FUTA, and IRS reporting requirements. Contractors in this space often deploy secure, scalable payroll platforms integrated with HRIS and timekeeping systems to support large, geographically dispersed workforces. Within the federal contracting landscape, this NAICS code supports mission continuity by enabling agencies to outsource complex, compliance-sensitive payroll operations, freeing internal resources for core program delivery while maintaining audit readiness and data integrity. Deloitte Consulting LLP is the leading contractor in this sector, delivering end-to-end payroll modernization and managed services to federal clients through its enterprise-grade HR and finance solutions. As a large prime contractor with deep expertise in public sector human capital systems, Deloitte leverages its integrated platforms to handle multi-agency payroll consolidation, automated tax filing, and real-time compliance monitoring. The Department of Health and Human Services is the primary agency awarding contracts under this code, driven by its vast workforce of clinicians, administrators, and field personnel across hundreds of programs and regional offices. Demand stems from the need for seamless payroll integration across grant-funded positions, temporary staffing, and multi-state operations, where regulatory alignment and data interoperability are critical. The competitive landscape is dominated by large primes with robust compliance infrastructure and certified payroll platforms, though opportunities exist for specialized small businesses offering niche services like Medicaid payroll compliance or workforce analytics. Procurement trends indicate a growing preference for cloud-based, AI-augmented payroll systems that reduce manual intervention and enhance audit trail transparency, creating demand for contractors with proven experience in federal financial systems modernization.

Small Business Size Standard

The SBA threshold that decides who can bid NAICS 541214 work as a small business.

$39.0M
Applies to the whole industry code

The SBA cap for this NAICS (13 CFR 121.201). A business at or under it can self-certify as small for work in this code, which is what makes it eligible for a small-business set-aside. The cap is set per NAICS, so the same company can be small in one code and not in another.

13 CFR 121.201, effective January 1, 2026. The SBA revises the table roughly once a year.

Top Contractors

Companies with the highest total award value under NAICS 541214, ranked by dollars won.

Competition

How many companies historically bid on federal awards in NAICS 541214, from bidder counts reported on USAspending.

Fewer Bidders

Median under 3 bidders per reported award. · 800 reported awards

Median Bidders

2

Per reported award, all-time

Single-Bid Awards

49%

Share of reported awards with one bidder

10+ Bidder Awards

6%

Share of reported awards with 10+ bidders

Reported Awards

800

82% of 972 total awards

Bidder Count Distribution by Fiscal Year

Share of reported awards in each bidder-count bracket per federal fiscal year.

How this code compares up the NAICS hierarchy. Parent cohorts pool every code under their prefix, so they are the steadier baseline when a 6-digit sample is thin.

Industry FamilyCompetitionMedian BiddersSingle-BidBidder MixReported Awards
541214This Code
Payroll Services
Fewer Bidders249%
80082% of 972
54121NAICS Industry
Fewer Bidders247%
21,26879% of 26,866
5412Industry Group
Accounting, Tax Preparation, Bookkeeping, and Payroll Services
Fewer Bidders247%
21,26879% of 26,866
541Subsector
Fewer Bidders249%
2,918,78285% of 3,416,794
54Sector
Professional, Scientific, and Technical Services
Fewer Bidders249%
2,918,78285% of 3,416,794

Bidder counts reported on past federal awards in this NAICS (USAspending). An open opportunity has no bidders yet, so this is the historical norm for similar work, not a fact about this solicitation. Not all awards report bidder counts, and fewer bidders often means incumbent-held work rather than an easier win. Federal reporting of bidder counts fell from ~96% of awards (FY2016) to ~30% (FY2018 onward); the chart shows shares of reported awards, and washed-out stretches mark years with fewer than 30 of them.

Related NAICS Codes

Industries similar to Payroll Services, by shared sector, subsector, and industry group.

Explore contracts across multiple NAICS codes Browse all NAICS Codes

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NAICS 541214 FAQ

Frequently Asked Questions

NAICS code 541214 covers Payroll Services. 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. Cross-References.

Recently Posted in Payroll Services

NAICS: 541214
SLED
Affiliate Counselor Network Administration and Payment Services
Solicitation # 406
The Vermont Agency of Human Services, through the Department of Disabilities, Aging and Independent Living and the Division of Vocational Rehabilitation, is seeking a contractor to serve as the affiliate counselor network administrator and payment agent for the HireAbility program. The selected contractor will manage a network of 60 to 90 independent 1099 mental health professionals, providing services for both in-person and telehealth needs. Key responsibilities include recruiting and screening qualified counselors, verifying credentials, monitoring licensure, and managing payroll and tax reporting. The contractor must provide a secure, internet-based administration and payment system with a help desk available during state business hours. The contract is for a five-year term with an anticipated start date of April 1, 2027. Performance is evaluated based on technology and reporting capabilities, key staffing, capacity to interface with program staff, and budget reasonableness. Deliverables include quarterly affiliate network reports and monthly utilization reports and invoices. The contractor must adhere to strict compliance standards, including HIPAA awareness, cybersecurity practices, and non-discrimination requirements under Title VI of the Civil Rights Act of 1964. Payment terms are Net 30 days following the submission of detailed monthly invoices and required documentation, such as a current W-9 and a certificate of insurance.
Department of Economic Development

POSTED

13 days ago

DEADLINE

in 16 days
View Details
NAICS: 541214
Closed
SLED
PA038-26 Provision of 1099 Processing Services on an Annual Contract
Solicitation # PA038-26
Gwinnett County Government is soliciting proposals for an annual contract to provide comprehensive 1099 processing services for the Department of Financial Services. The scope of work includes processing data from the County's Oracle system of record, form generation, printing, mailing via USPS First Class, and e-filing directly to the IRS. Key requirements include pre-filing TIN matching, handling First and Second B Notices, and providing a secure online portal for recipients to access forms, which must remain available for at least three years. The selected provider must adhere to IRS Pub. 1075 standards for taxpayer information protection and ensure all SSNs and TINs are truncated on printed forms. The solution must be fully implemented and functional by December 1, 2026. Proposals are due by October 2, 2026, at 2:50 P.M. local time and must be submitted in a sealed container to the Purchasing Division in Lawrenceville, Georgia. The evaluation process consists of a three-phase approach: a technical evaluation weighted at 90 points, a fee proposal review for short-listed firms weighted at 10 points, and an optional interview. Award will be granted to the highest scoring firm, with the lowest cost serving as the tie-breaker. The contract includes an annual term with four renewal options, and payments are issued monthly within 30 days of an approved request. Required submission documents include a fee schedule, references, a contractor affidavit, and a code of ethics.
Gwinnett County Government

POSTED

13 days ago

CLOSED

4 days ago
View Details

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