Some organizations outsource their payroll and/or HRM functions in an effort to reduce costs.A third party that maintains the payroll master file for each of its clients and processes payroll for them is called
A)a professional employer organization (PEO).
B)a payroll service bureau.
C)a value-added network.
D)an electronic data interface.

Question

Quizplus · Accepted Answer

A payroll service bureau is a third party organization that provides payroll processing services to other companies. They maintain the payroll master file and handle all aspects of payroll processing, such as calculating taxes, producing paychecks, and distributing them to employees. Outsourcing payroll to a service bureau can reduce costs for companies that do not have the resources or expertise to manage payroll in-house. Professional employer organizations (PEOs) provide a broader range of HR functions, including benefits administration and employee relations, while value-added networks (VANs) and electronic data interfaces (EDIs) are technology solutions for exchanging information between businesses.

Some Organizations Outsource Their Payroll And/or HRM Functions in an Effort