Outside payroll may be used by a personnel department which decides it's a good idea to utilize an outside vendor to assist in keeping up with legal and tax reporting and compliance requirements. Using an outside processor can also help develop and implement a pretty tight system of internal control over the payroll function.
Employers seek to free up other employees to concentrate on the business of the company but outsourcing payroll functions to an outside company. A business that specializes in payroll processing will generally offer the following services:
