Sage Software has signed a deal with CompuPay to provide outsourced payroll services for Sage customers, including those using Peachtree Managed Payroll.

The agreement will allow Sage's Employer Solutions business to focus more on delivering human resources software to small and midsized businesses.

"The best way for us to deliver outsourced payroll today to our existing payroll clients, and for future Sage clients, is to align ourselves with a company like CompuPay, a recognized leader in the industry," said Sage senior vice president Karl Grass in a statement.

CompuPay will take over day-to-day operations in St. Petersburg, Fla., of Sage Software's online payroll services business, including Peachtree Managed Payroll, as well as payroll services for Sage Abra, Accpac ERP, BusinessWorks Accounting, MAS 90 ERP and MAS 200 ERP.

CompuPay will also make its other payroll and after-payroll services for 401(k) retirement plans, Section 125 plans, workers compensation insurance and employee benefits available to Sage customers. CompuPay will retain a number of Sage payroll employees to continue to service customers and thereby avoid interruptions during the transition.

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