What payroll tasks should you manage internally and what tasks should you outsource?

Jessica Messano / April, 2018

Description

Jessica Messano, Director of HR at Execustaff HR explains what payroll tasks you should outsource and what tasks you should have control of.

Video Transcript:

What payroll tasks should you manage internally and what tasks should you outsource?

Most payroll tasks can be outsourced to a payroll processor, administrative services organization or a professional employer organization. There are definitely some tasks that the company should not relinquish to a vendor. I would specifically say that would have to do with ensuring compliance as far as the wage and hour requirements.

Making sure that employees are trained and knowledgeable on how to accurately complete a timecard. Making sure that the data that is sent to a vendor to process payroll is accurate. Double-checking on the pay stub that it has all the requirements of the law as far as what information needs to be provided on the paystub. Also making sure that the calculations are working. If you offer vacation or sick leave make sure that the accrual is calculating correctly and making sure that the pay rates are accurate and adding up correctly.

I would say that is something that even if you do have provider handling payroll for you. Those are still tasks that the company should keep ownership of just to make sure that they’re the ones ensuring that it is compliant.

In my opinion, I would recommend for a small company to pretty much from the beginning look at possibly having a payroll processor, administrative services organization, or professional employer organization to kind of help with the different tasks related to payroll only because there are so many different regulations in that area of law and it gets super complicated. If that is not someone’s area of expertise and it’s just something that they’re doing in addition to their regular role then it’s taking a lot of unnecessary risk for the company.

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QUICK INFO

  • Jessica Messano, Execustaff HR
  • April, 2018
  • 2:03
  • Team, HR & Admin

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