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What is payrolling? Outsourcing payroll or personnel

Blog
April 26, 2024

Have you ever wondered what payrolling or payroll actually involves? And do you already know Try & Hire? The answer is not so simple because the term “payrolling” is used for 2 different services. Such as “Payroll Services” – i.e. the management of employees’ wages and salaries by an external company. But also for a new type of employment: outsourcing personnel to a specialised service provider. Complicated? No problem, I’ll explain it to you briefly and concisely. But let’s start with the English word payroll.

What does payrollGlossary mean?

The English word ‘payrollGlossary’ means ‘payrollGlossary accounting’ in German and covers all tasks related to the payrollGlossary of employees in a company. This includes:

  • Recording or reviewing working hours
  • Creation and review of way and salary payslips
  • Calculation of social security contributions and taxes
  • Payment of wages

PayrollGlossary is therefore a central part of human resources and ensures that all employees are paid on time and correctly.

Another aspect of payrollGlossary is compliance with legal requirements and guidelines. This includes, among other things, labour law, tax regulations and social security provisions. An incorrect payslip can not only lead to dissatisfaction among employees, but often has legal consequences – which quickly become expensive.

Modern software systems such as Apriko digitise these payrollGlossary processes in order to automate them. This saves time, money and minimises errors.

What are payrollGlossary servicesGlossary?

PayrollGlossary ServicesGlossary is a fiduciary service provided by external providers and focuses on the administration of payrollGlossary accounting and other related tasks. This is typically offered by fiduciary companies. In the meantime, however, payrollGlossary specialists have also established themselves who only offer this. Some companies also offer payrollGlossary specialists in body leasing or staff leasingGlossary – i.e. these people come and work in your company.

The main advantage of a payrollGlossary service is that companies can relieve their internal resources. By outsourcing payrollGlossary, they can save time and costs and focus on their core competencies – the actual business.

When choosing a provider, you should do your research and check whether the outsourcing service provider understands your specific business model. At Apriko, we are specialists for the back office for personnel service providers. This means that we offer payrollGlossary servicesGlossary for staffing agencies, staff leasingGlossary companies, and recruiters – we take care of the back office while they take care of the recruiting business.

All clear so far? But what is the second meaning of payrollingGlossary?

What is payrollingGlossary?

In contrast to the staffing agency, where the agency searches for suitable candidates and temporarily leases staff to companies with vacancies, during payrollingGlossary the company itself selects the suitable employees and the payrollGlossary agency then only regulates the employee relationship.

The principle is based on the fact that the company knows exactly who it wants to hire, also takes care of recruiting, but for various reasons it can no longer add anyone to its own payrollGlossary. Possible reasons for this are:

  • General recruitment stop in the company
  • Time-defined assignment of the person – e.g. for a specific project
  • Large seasonal fluctuations in capacity utilisation
  • Lack of internal expertise for hiring freelancers
  • Lack of internal resources in administration for the complex hiring and billing processes
  • You want to test a person in everyday work and, if necessary, hire him/her later

Special case Try & Hire

And here comes another English buzzword. Try & Hire is a special case for recruiters and staffing agencies. Companies test people in their daily work before deciding on permanent employment. During this time, the payrollGlossary officer or the staffing agency assumes the employer’s contractual relationship and is responsible for the legally correct payrollGlossary and salary payment, including social security contributions, taxes and what goes with it.

Did the explanation of payrollingGlossary help you? We also offer software for payrollingGlossary. Just get in touch!

Thaya Selvarajah
CEO & Founding Partner
Date: 16.04.2024

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