What is outsourced payroll in SAP SRD-HR-PAY - HCM-Payroll Processing?

SAP Term: outsourced payroll

• Component: SRD-HR-PAY

• Component Name: HCM-Payroll Processing

• Description: Business process term for hiring an independent third-party payroll provider to run an organization's payroll, instead of performing these payroll tasks in-house. Payroll outsourcing is often implemented by small and medium-sized companies for reasons of cost, productivity, reliability, accuracy, speed and accountability. Various levels of service can be provided by a third-party payroll provider, including: Processing full payroll, supplying payslips, paying employees Supporting payroll queries Generating reports Submitting statutory information to tax authorities Sending payments to tax authorities and other third parties

Smart SAP Assistant

• Key Concepts: 
  Outsourced payroll is a service offered by SAP that allows companies to outsource their payroll processing to a third-party provider. This service includes the calculation of wages, taxes, and deductions, as well as the payment of wages and other benefits. It also includes the management of employee records and the filing of payroll taxes. 
  
  How to use it: 
  To use the outsourced payroll service, companies must first register with SAP and provide their payroll information. Once registered, companies can then select a third-party provider to manage their payroll processing. The provider will then be responsible for calculating wages, taxes, and deductions, as well as the payment of wages and other benefits. 
  
  Tips & Tricks: 
  When selecting a third-party provider for outsourced payroll services, it is important to ensure that they are experienced in working with SAP software. Additionally, it is important to ensure that the provider is compliant with all applicable laws and regulations. 
  
  Related Information: 
  The SAP component SRD-HR-PAY HCM-Payroll Processing is used to manage outsourced payroll services. This component includes features such as wage calculation, tax filing, and employee record management. Additionally, this component can be used to generate reports on payroll processing activities.