This website uses cookies to ensure you have the best experience. Learn more

Outsourcing Payroll And Tax Services Essay

1854 words - 8 pages

Pro Staffing Research for Outsourcing Payroll and Tax Services


Table of Contents
Project Scope 4
Requirements 4
Procurement Advantages 5
Savings Analysis 5
Procurement Disadvantages 6
Risks 6
Scoring Matrix for Procurement Proposals 8
Contractual Analysis 12
Considerations 12
Proposal Information 12
Legal Compliance Subjects 12
Proposal Questionnaire 12
Instructions to Proposers 13

Project Scope

Pro Staffing research of outsourcing payroll and tax responsibilities versus in-house or new software package to evaluate which process will better meet the needs of corporation in both cost and quality of services.
The analysis shows the ...view middle of the document...

29% were “all-service” ADP clients, meaning they outsourced payroll, time and attendance, workforce administration, and health and welfare benefits administration.

* 67% utilized ADP time and attendance services;
* 42% used an ADP-hosted system as their HR system of record; and
* 38% outsourced their benefits administration to ADP

The size of the client companies that participated in the study are as follows:
* 10,000+ employees (25%)
* 5,000 to 9,999 employees (37%)
* 2,500 to 4,999 employees (17%)
* 1,000 to 2,499 employees (21%).

Data from businesses perform payroll internally, “nearly one in four report spending more than six hours per month on payroll. That's at least 72 hours per year—nearly two full workweeks. If we use 2012 data from the Bureau of Labor Statistics to assume the hourly cost for internal payroll staff to be $36, these 72 hours translate into $2,592 per year.” (Jones, Marshall, 2013).
Procurement Disadvantages

* Less control including but not limited to late employee disbursements
* Security threats (see risks below for more detail)
* Some data may be less accessible


Risk of government reporting and employee withholding taxes are move to the vendor.

Major security risk by having another company having access to information such as employee social security numbers and bank account numbers associated with them as well as those associated with the business. It is very important to investigate how this information is protected. 

The company may consider other business areas for procurement in the future. There are risks to outsourcing which can include but not limited to lower levels of service, inferior quality outputs loss of control and adversely affecting deadlines, cultural misalignment and exposure to other economic and environmental factors. (Carlos Sanchez, 2010).

Starting outsourcing with an American company for payroll and tax services which has been one of oldest and most outsourced functions by companies will allow an introduce to create protocols and gain experience in what is becoming a popular alternative to in-house responsibilities. Companies have taken over an estimated 40% or more of companies both large and small in managing company’s payroll and tax services. (Marshall, Jones, 2013).

Scoring Matrix for Procurement Proposals

Criteria | Criteria Weight Percentage | Standards | Standard Weight Percentage | Measurement |
Basic Requirements |   | Mandatory reasons for exclusion | N/A | Pass/Fail |
| | Discretionary reasons for exclusion | N/A | Pass/Fail |
| | Insurance | N/A | Pass/Fail |
Quality and Capability with existing systems | 40% | Delivery of Corporate Objectives | 5% | Quality |
| | Completeness, robustness and systems interfacing approach | 5% | Quality |
| | Compatibility with existing environment | 10% | Quality |
| | Overall assessment | 10% | Quality |
| | Assessment of...

Other Papers Like Outsourcing Payroll and Tax Services

Philippines New Call Center Capital? Essay

1309 words - 6 pages computerization. This practice gave companies idea to reduce expenses specifically labor. It is common for organization to outsource a service provider to do work for them, the process is known as Business Process Outsourcing. Business Process Outsourcing (BPO) is the contracting of a specific business function to a third-party service provider as a cost-saving measure of companies such as IT-related services, financial and administration (F&A

Outsourcing Jobs May Lead to a Weakened Economy

1072 words - 5 pages reports of job losses from outsourcing automobile parts and accessories. There is tremendous loss of revenue from income taxes, property taxes and corporate taxes. There are lesser payroll tax receipts and lesser contributions to Social Security and Medicare, not to mention also the outgoing payments for unemployment benefits. Sales and other tax revenue suffers too. When growth in high-wage jobs at home slows, unemployment grows and lower wages

Impact of Outsourcing in Improving Productivity in Modern Organizational

4027 words - 17 pages business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and Bradstreet 2000). Globally, outsourcing usage grew 35 percent in 1997 and the total market for outsourced services is expected to increase to $200 billion by the year 2001 (Greer, Youngblood, and Gray 1999). A recent study was conducted by Yankelovih Partners indicated that two-thirds of

Managing and Using of Is

973 words - 4 pages example, she says, “If you’re considering outsourcing your human resources function, it’s important to explore a potential partner’s level of expertise in payroll, tax filing and employment and benefits compliance, such as minimum wage and overtime requirements and the Affordable Care Act.” Also, be mindful that “the process of selecting a partner may take some time,” she says. “Dig deep on capabilities. Ask a trusted advisor, colleague and/or fellow

Audit Program Design Part Ii

1258 words - 6 pages . for allowing us to continue with the necessary auditing activities. AOW will work diligently to ensure the trust placed in our services is well-founded, and results in a desire for an ongoing auditing partnership for future needs. As requested, we have provided information on designing tests of controls, substantive tests of transactions, and analytical procedures for the sales and collection cycle, payroll and personnel cycle, and acquisition and

Outsourcing Paper

2083 words - 9 pages assignment will be based on the analysis of research papers that revolve around the topic of outsourcing. Forms of business aspects covered by outsourcing In the current practice, outsourcing takes many forms as proficient service providers are hired to deal with distinct business processes such as benefits management, payroll, etc. Although, outsourcing definition includes both foreign and domestic contracting (Hira, Ron, & Hira, 2008), the

Computerized Payroll System

2223 words - 9 pages a list of employee’s names, addresses and employees information and to interactively calculate and print pay slip. Payroll is the sum of all financial records of salaries of an employee, wages, bonuses and deductions. It also refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. The primary mission of the store manager is to ensure that all

Hr Outsourcing

1327 words - 6 pages ground up. Outsourcing improves the quality of office processes by providing fast services, accurate and meaningful reporting, and the taking away many of the internal control weaknesses natural in closely held businesses. Outsourcing can also save you money, since it provides access to the lower-cost structure of an outside provider, which results in bigger economies of scale and lower overhead cost should your business experience a slowdown

Payroll Budget Implecations

1246 words - 5 pages the 2014/15 tax year, but how will that money be spent? Mindful of the country’s budget deficit, Minister Gordhan plans to increase real non-interest spending by only 1.9% over the next three years. Sage Pastel Payroll & HR correctly predicted that the lion’s share of revenue allocation during this year’s budget announcement would go to health services, education and social grants. Minister Gordhan allocated R254 billion for education, R146

The Outsourcing Advantage

1222 words - 5 pages common services to outsource are payroll, sales & marketing, IT, manufacturing and finance ( Two such firms that choose to outsource are & Outsourcing allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best (Gamble & Thompson, pg. 127). In Travelocity’s case, the majority of their job

It in Business

1600 words - 7 pages can provide the services with a lot of efficiencies to ensure low cost and high production. The main reason why outsourcing becomes possible is the difference in factor endowment of resources and also difference in levels of production as it is proposed by Ricardo and Adam Smith (Hira, 2008). Outsourcing has been attributed to many effects in and out of the outsourcing company and the country. Out sourcing in the information industry has

Related Essays

Goods And Services Tax Essay

657 words - 3 pages Goods and Services Tax-What it is! Folks! Goods and Services Taxes or simply put GST is believed to solve many issues when it comes to the taxation policy in India. Before we jump into the technicalities of GST, let me set some pretext for those who have little idea about this topic. Our country, India, is a land of Taxes! Currently, we have numerous taxes like Sales Tax, Value Added Tax, Service Tax, Income Tax, Central Excise, Customs

Executive Summary Paychex1 Essay

575 words - 3 pages payroll, human resource, benefits outsourcing services for small businesses. Most of Paychex’ clients average a number of 17 employees. They hope to expand to more medium size companies and eventually larger companies. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, and check signing. They have more than 100 office locations across the

Outsourcing Essay

1713 words - 7 pages paid $30,000 annually for performing several activities including payroll, car allowances, tax remittances, etc. The number of mistakes was enormous and Dawn had to pay an additional $52,840 annually to fix these errors internally by hiring an administrator, seeking help from the headquarters in Dallas, and working on them herself. She estimated the costs of same services provided by an in-house provider for about $4,000 an administrator would

Kudler Fine Foods System Reveiw Essay

1364 words - 6 pages will enable the current HR and payroll personnel to track better and store employee information, streamline timekeeping, track training, control manager access, and allow employees access to benefits and other information. Brenda Wagner, the current HR Director will monitor and control access to the various modules. Current Human Resources/Payroll Systems Kudler fine Foods is outsourcing payroll through Intuit services as it integrates with