Question

• You have been asked by the CFO of the company where you work or previously worked to evaluate the use of a professional service organization for processing the company’s payroll. Identify the top-three issues that should be discussed when considering contracting the services of a payroll service provider. Evaluate the impact, both positive and negative, of each issue on the process in question. Provide specific examples to support your response.
• Using the information from the e-Activity, identify the key elements of a plan to outsource your firm’s payroll function. For each element of the plan, describe the impact of each element. Be sure that the elements address the necessary controls needed to safeguard your firm’s personnel data. Provide specific examples to support your rationale.

Answer 1

Identify the top-three issues that should be discussed when considering contracting the services of a payroll service provider. Evaluate the impact,

While giving payroll service to Outsider need to concentrate on following points :

1) Firm credential and experience + Accountability

2) Security + Flexibility

3) Cost and service Included

While providing service to outsider need to verify following points in details :

Experience , specialization – Need to ensure Qualification , experience , specialization relates to payroll matter . Employer needs to look into Job costing system , certified payroll reports flexible time and attendance tracking . To ensure that payroll and Human resource information entered into the system . These reports eliminate extensive manual calculation and hour of entering the same data into more system Ensure to capture all time relates data on real time basis

Another important step will be security – Secure of data, to ensure sensitive data encrypted , emplpyee screening process is in place , Insurance protection Tax liability along with payroll amount . To ensure that money are secured and not run off

Price , cost and benefit analysis – Employer always ensure that payroll to be a seamless part of the business. Employer always to comparative and cost benefit analysis in relates to cost of report provides by Payroll team .

Employer need to ensure about – Data conversion , need to ensure that payroll system is unified with core HR and attendance , Data integration capability , payroll tax compliance management , customer report