Payrolling

Payrolling is the business practice of referring a contingent worker to a staffing vendor so that they will employ the candidate and process there billings and payroll. Different from sourcing (or recruiting) where the staffing vendor uses internal recruiters to locate contractors on behalf of the requesting company or client, payrolled workers are identified by the client.

Often payrolled workers are known to the client from previous engagements or as former employees. Because the costs of recruiting workers in to contract positions are eliminated the payrollees are often processed at reduced mark up rates.

In the last several years some dedicated payrolling companies have emerged in the staffing industry to provide payrolling services at greatly reduced pricing.