Question

Answer the following questions: 1. Research a payroll processing/outsourcing firm. Report the name of the firm and describe some of the functions this firm can perform for a company. Include a link to the firm's website. 2. Based on what you've learned in this chapter and using credible Internet sources, what are the pros and cons of outsourcing a company's payroll function? 3. Do you believe it is better to outsource a company's payroll functions or perform those functions internally? Why?

Answer 1

One of the best payroll outsourcing name “ Gusto “ . This company is a payroll service that building an online presence .

All of the Gusto plan are competitively priced and can be more affordable than some of the other payroll service for future service .

Good point in case of Gusto plan are:

New hires can e sign

Automatically pay state and federal unemployment insurance

Wages , health benefit administration and worker compensation administration

Payroll outsourcing represents the use of a service provider to handle the administrative and compliance function of paying employees. Payroll outsourcing is one option for paying workers in a domestic or foreign location through use a third party payroll provider.

Most important point to note that when to outsourced payroll . It depends on several factors like such as number of employee on assignment , need to understand company has a local entity and complexity of the host country laws regarding employment and withholding

The payroll functions typically outsourced to a third party provide include:

1. Running payroll and making employee pay + Withholding calculations
2. Issuing checks to employees
3. State and federal payroll tax
4. Filling different government report

Outsourcing definitely is one method to avoid hiring additional employees or contracting with specialist

Companies used to choose payroll outsource mainly due to : cost savings , Ease of ongoing administration of payroll , avoiding mistake and tax compliance penalties

Most advantage of outsourcing payroll – The advantage of outsourcing payroll is applicable for small and large Companies .

Major benefit of this service is COST savings + time savings and filling all reports on time + avoiding compliance issue

Thus advantage are multiplied in foreign markets where payroll rules and tax laws are unknown toa new business .

Major disadvantage of Outsource payroll – following are major dis advantage during outsource payroll

Losing control of compensation , losing employee data, security issues , lack of service quality.

Also payroll outsource is a limited amd does not guarantee compliance with taxation . The payroll provider does not offer the foreign company a local employment entity