Processing payroll has a lot of variables. Organizations need to understand federal, state, and local income tax requirements; how to process wage garnishments; how to set up payments for any benefits that come out of payroll, etc. There are also regulatory and compliance issues like the distribution of W-2s.
Given these variables, a lot of employers opt to outsource payroll. Here are some of the potential advantages to outsourcing payroll to a third party:
It frees up administrative time; whoever was responsible for it internally can now be assigned to other tasks.It