Cold email software for payroll providers
Acqro gives payroll and benefits administration providers cold email that researches each prospect's company before writing. Below: verified federal data on the industry across all 50 states, the buyers it sells to, and a playbook for outreach that earns replies.
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How many payroll providers are in the United States?
The United States had 5,556 establishments in NAICS 541214, payroll services, in 2023, employing 309,518 people. The largest markets by establishments were California, Florida and Texas. Source: U.S. Census Bureau County Business Patterns.
Payroll providers in the US by the numbers
- US establishments
- 5,556+1.4% vs 2022Census CBP 2023, NAICS 541214
- Paid employees
- 309,518Census CBP 2023
- Average annual pay
- $66,265Census CBP 2023
- Firms under 10 employees
- 60.2%Census CBP 2023
- Largest state
- CaliforniaBy establishments, CBP 2023
Census does not publish a separate category for payroll and benefits administration providers; figures use NAICS 541214, Payroll Services, the closest official industry. 60.2% of establishments have fewer than 10 employees, so most firms in the industry run outbound with a founder or a very small sales team. The 2,012 firms with 10 to 249 employees are the ones most likely to be building a repeatable outbound process.
The five largest states hold 40.7% of all establishments. Among states with at least 100 establishments, the fastest growth between 2022 and 2023 was in California (+12.7%), Maryland (+10.3%) and North Carolina (+7.9%). Growing markets bring new competitors and new buyers at the same time, which rewards outreach that is specific rather than volume-driven.
Payroll providers by state
All states and DC ranked by number of establishments, with the change since 2022.
| Rank | State | Establishments | Employees | Change vs 2022 |
|---|---|---|---|---|
| 1 | California | 711 | 49,823 | +12.7% |
| 2 | Florida | 492 | 16,406 | −4.3% |
| 3 | Texas | 466 | 22,999 | +2.0% |
| 4 | New York | 395 | 24,996 | −5.0% |
| 5 | New Jersey | 195 | 12,668 | −0.5% |
| 6 | Pennsylvania | 188 | 7,745 | −1.1% |
| 7 | Michigan | 183 | 8,053 | −3.7% |
| 8 | Georgia | 180 | 14,657 | +1.7% |
| 9 | Ohio | 177 | 5,369 | −10.6% |
| 10 | Illinois | 168 | 18,007 | −5.1% |
| 11 | Arizona | 143 | 6,321 | −1.4% |
| 12 | North Carolina | 137 | — | +7.9% |
| 13 | Virginia | 125 | 4,838 | −3.1% |
| 14 | Utah | 119 | 4,737 | +6.2% |
| 15 | Massachusetts | 109 | 2,435 | +2.8% |
| 16 | Maryland | 107 | 2,784 | +10.3% |
| 17 | Colorado | 106 | 7,201 | +1.0% |
| 18 | Tennessee | 102 | 5,201 | +4.1% |
| 19 | Oklahoma | 98 | 7,429 | +14.0% |
| 20 | Louisiana | 89 | 5,427 | +11.2% |
| 21 | Washington | 88 | 3,569 | −7.4% |
| 22 | Indiana | 87 | 2,744 | −2.2% |
| 23 | South Carolina | 83 | 3,009 | −1.2% |
| 24 | Missouri | 80 | 4,032 | +6.7% |
| 25 | Oregon | 77 | 1,227 | +2.7% |
| 26 | Wisconsin | 76 | 2,695 | +16.9% |
| 27 | Minnesota | 71 | 3,414 | +1.4% |
| 28 | Kentucky | 62 | 1,950 | +5.1% |
| 29 | Connecticut | 55 | 962 | +3.8% |
| 30 | Alabama | 54 | 2,349 | −3.6% |
| 31 | Kansas | 43 | 2,191 | +22.9% |
| 32 | Nevada | 42 | — | −10.6% |
| 33 | Mississippi | 40 | 1,016 | −9.1% |
| 34 | Idaho | 38 | 649 | +8.6% |
| 35 | Iowa | 35 | 1,434 | +12.9% |
| 36 | Arkansas | 31 | 471 | +3.3% |
| 37 | Montana | 31 | 684 | +3.3% |
| 38 | Nebraska | 31 | 1,450 | +14.8% |
| 39 | New Hampshire | 28 | 1,216 | −3.4% |
| 40 | Rhode Island | 28 | 420 | +3.7% |
| 41 | Delaware | 25 | 391 | −7.4% |
| 42 | Maine | 23 | — | −28.1% |
| 43 | West Virginia | 22 | 303 | 0.0% |
| 44 | Hawaii | 21 | 778 | +16.7% |
| 45 | New Mexico | 20 | 1,674 | −4.8% |
| 46 | District of Columbia | 17 | 560 | +6.2% |
| 47 | Alaska | 15 | 170 | +25.0% |
| 48 | South Dakota | 13 | 86 | −13.3% |
| 49 | Wyoming | 11 | — | +37.5% |
| 50 | North Dakota | 10 | 109 | −9.1% |
| 51 | Vermont | 9 | 165 | −18.2% |
Who payroll providers sell to
Common buyer industries for payroll and benefits administration providers, with US establishment counts and how many have 10 to 249 employees.
| Buyer industry | Establishments | 10–249 employees | Employees |
|---|---|---|---|
| Construction | 814,557 | 147,964 | 7,659,459 |
| Restaurants and Other Eating Places | 618,476 | 348,428 | 11,406,584 |
| Offices of Physicians | 218,066 | 58,939 | 2,771,935 |
| Personal Care Services | 160,726 | 20,964 | 764,640 |
How payroll providers should run cold email
Payroll and benefits administration providers sell payroll processing, tax filing, benefits administration and HR software. These are the contacts, triggers and messages that make a first email relevant rather than generic.
Who to email
- Owner or CEO at small businesses
- Office manager or bookkeeper
- Controller or CFO
- HR manager
Signals worth researching
- Hiring growth, especially first employees in new states
- Job posts for payroll or bookkeeping roles
- New locations
- Complaints about current providers in public reviews
What to say
- Reference the growth or multi-state expansion
- Speak to time saved and filing accuracy
- Offer a short comparison with their current setup
What to avoid
- Contacting during payroll-run days when office managers are busiest
- Unverifiable savings claims
Cold email for payroll providers, answered
How many payroll providers are there in the US?
There were 5,556 establishments in NAICS 541214 (Payroll Services) in 2023, employing 309,518 people. Source: U.S. Census Bureau, County Business Patterns 2023.
Which states have the most payroll providers?
By establishments in 2023: California (711), Florida (492), Texas (466), New York (395) and New Jersey (195). Source: U.S. Census Bureau, County Business Patterns 2023.
What triggers a business to switch payroll providers?
Growth is the most common trigger: hiring in new states, adding benefits, or outgrowing a basic tool. Service problems and year-end filing errors are the others. Outreach tied to visible growth tends to find buyers at the right moment.
Who chooses the payroll provider at small businesses?
Usually the owner, with the office manager or bookkeeper heavily involved because they run payroll day to day. At larger companies, the controller, CFO or HR lead decides.
Is cold email legal in the United States?
Yes. The federal CAN-SPAM Act permits commercial email to business contacts without prior consent, provided the message identifies the sender accurately, uses a truthful subject line, includes a valid physical postal address and a working opt-out, and honours opt-out requests promptly. CAN-SPAM applies in every state and preempts most state commercial email laws, except provisions aimed at falsity or deception. This is general information, not legal advice.
Explore related pages
Payroll Providers by state
Other industries
Sources and methodology
Every figure on this page comes from a federal statistical release and is shown with its source and reference year. Figures the agencies withhold or publish with high noise are left out rather than estimated. Page updated September 17, 2026.
- U.S. Census Bureau, County Business Patterns 2023 and 2022: establishments, paid employment for the pay period including March 12, annual payroll, and establishments by employment size. Industries use NAICS 2017 codes.
- Industry definition: NAICS 541214, Payroll Services, used as the closest official category for payroll and benefits administration providers.
Built for payroll providers who sell to a finite list
Acqro researches every account on your list and writes the first email from what it finds.
Prefer a conversation? Get in touch.