Question

The key objectives for any payroll system are to produce payroll accurately, on time and in compliance with all legislation.

List and describe three items that the organization can use to analyze their specific requirements prior to selecting a payroll solution.

Answer 1

Payroll is the employment-related payment by a firm to its employees, insurance, and tax department.

Items to be considered:

No. 1) Efficiency: It indicates skill of doing payroll act. There are so many activities to complied with – filing reports, ensuring withholding, issuing W-2 forms, etc. If the person in charge is not efficient, the whole payroll act could be outsourced as well.

No. 2) Risk: In house payroll act is always safe, since data are secured; but if it is done through outsourcing, there is always a chance of misusing data. The firm has to think how much risk they can tolerate.

No. 3) Cost: This is important because of financial aspect. Lower cost between in-house payroll act and outsourcing act may be chosen.