Payrolling Services
Payrolling, in the context of business and HR, means outsourcing the administrative and legal responsibilities of employment to a third-party company. Essentially, the employer (the business) retains control over hiring, training, and managing the employee, while the payrolling company handles payroll, benefits, and legal compliance.
Here's a more detailed breakdown:
- Responsibility Shift : Payrolling involves transferring some of the employer's responsibilities, such as payroll processing and legal compliance, to a payrolling company.
- Third-Party Involvement : The payrolling company, also known as an "employer of record," takes on the legal and administrative aspects of employment, including payroll, taxes, and benefits.
- Employer's Role : The business (the employer) still manages the hiring, training, and overall direction of the employee, while the payrolling company handles the logistical and legal details.
- Employee Contract : The employee is technically employed by the payrolling company, not the business that hired them.
- Benefits: The payrolling company usually handles benefits administration and may also provide additional services like HR consulting.
