Why Do Companies Hire on Third-Party Payroll?

While most operators would suggest that salaries and payments are the business’s strategic components since it populates the Sales, General & Administrative line item, a significant portion of businesses across the globe outsource it to third-party service providers.

As per a Deloitte survey, 24%-27% of firms across North America, Latin America, EMEA, and APAC outsourced their payroll management function to third-party vendors.

Payroll management services generally include a basket of services like:

• Integrating time-sheets into payable salaries and tax liabilities.
• Managing tax-deducted at source, tax filings, and deductions.
• Providing management reports.
• Managing wage garnishments and other ad hoc requirements.
• Processing payment discrepancies.