Your company’s human resources (HR) chief is responsible for many critical aspects of your workforce. They’re tasked with finding, hiring, training and assessing the performance of your employees. Your HR team is also responsible for developing an appealing culture and ensuring the company complies with all labor and employment laws. They may also oversee payroll. If you have unionized employees, HR is the liaison between your company and the union. To say that HR carries responsibility for your company’s success is an understatement.
HR outsourcing is exactly what it sounds like. It is handing off some or all of your HR functions to a third party. This can be an alternative to hiring an internal HR department or used in tandem with an in-house HR professional who handles some of your HR responsibilities.
Outsourced HR services depend on the contract between the company and the provider. The client service agreement often asks the contractor to handle payroll by managing all withholdings and taxes. The HR company may also be in charge of releasing all W-2s to worksite employees. You may also use the outsourced service to manage employee benefits or retirement plans.



