Payroll is a critical function within a business on various levels. Not only is there the confidentiality aspect, there are taxes and reporting involved that can reap steep penalties if not filed properly and on time.
More often than not, I have seen administrators of companies become very frustrated when given the task of bookkeeping when they have no financial background to handle this task. This is a huge mistake for the success of your business.
One portion of bookkeeping that can be delegated (outsourced) is the payroll. I use a payroll company to save not only time, but the headaches from ensuring the taxes are paid and the tax reporting is filed in a timely manner.
There are several payroll companies that are national, ADP and Paychex are two I recommend; in fact I use Paychex. You will also have several payroll companies in your area. Have the companies provide you with a quote, it is definitely worth the fees!