Payroll VS Payrolling : What is the difference ?

To get right to the point: payrolling is different from payroll. These terms are frequently a subject of confusion for a lot of people, and it’s for this exact same reason that we have decided to summarize the main differences between both in the article below. But before explaining the differences, we need to define payroll and payrolling.

What is payroll?

Payroll is actually the current administration of salary. This concerns employment contracts between every employer and its employees. Employers are allowed to decide to outsource the salary and all the personnel administration that results from these employment contracts to an accounting firm, or they may decide to do all relevant accounting and administrative work internally. The same applies to any required insurance.

What is payrolling?

If an employer recruits an employee via a payrolling construction service, the person does not become a direct employee of the employer. However, the employee becomes employed by the payrolling company. The employer can find the right employee and register the candidate with the required payrolling company. The payrolling company takes care of all the administrative work included in this employment, involving any insurance needed. The employee signs an employment agreement with the payrolling company instead of the employer that recruits the candidate. The payrolling company is the party that controls the employee advantages and invoices the full amount plus their profit to the employer.

As an international payrolling company,  Pentabell provides its clients with quality HR management services. Rather you are in Tunisia, Algeria, Lybia, Morocco, Egypt Switzerland, France, or even UAE you can always contact us for your payroll outsourcing.


Benefits and disadvantages

The payrolling construction is flexible more than any regular employment contract,  especially for temporary employees. In that case, it is uncomplicated for both parties to end the employment. This may be an advantage or a disadvantage. Workers frequently perceive the decision of employers to recruit them via a payrolling company as an indicator of mistrust. And it is very important to construct a bond with the workers based on appreciation and trust. 

Up-to-date knowledge and skills

Besides the administrative processes, you can also count on different payroll services for a legal knowledge of the different accounting and HR evolutions, all over the world. In addition, you do not have to worry at all about contact with the working conditions services,  tax authorities, and insurers. As a payroll company, we take care of all this over from you.

You can learn more about the advantages of payroll outsourcing from this article.

Do you want to know what does that mean for your employee?

With payroll, your workers have the same legal role as their colleagues.
Actually, this means that they fall under the same employment conditions. The main advantage of this is that there are no crooked faces on the worksite and that everyone on the team knows where he stands. This is in contrast to workers who go to work somewhere via payrolling. They often do not have the same employment advantages or conditions as their colleagues

The advantages of payroll:

  • You remain a legal employer
  • You have  less personnel administration
  • You always have access to up-to-date knowledge of  regulations and laws Clear costs
  • A professional point of contact for different authorities

Payrolling takes a lot of things out of your hands, and with Pentabell’s payroll services, payroll administration is also fully taken care of, but you remain a legal employer.


Do you want more information?

Do you have any questions about the above-mentioned payroll service? Then please contact us. We are happy to help you make the right choice. Pentabell is ready to help you set up your own salary administration with the associated employee’s different benefits and insurance policies. If you would prefer payrolling, we would be happy to connect you with one of our experts in this field.

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