HR Glossary

What is Payroll Outsourcing?

The practice of hiring a third-party provider to handle some or all payroll functions, including wage calculation, tax withholding and filing, direct deposit processing, compliance management, and year-end reporting, instead of managing these tasks in-house.

Why it matters in hiring

Payroll Outsourcing comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Payroll
• Payroll Compliance
• Payroll Cycle
• Payroll Deductions
• Payroll Processing
• Payroll Reconciliation
• Payroll Software
• Payroll Tax (Australia)

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