North America

Payroll & Tax: Top Choices For Outsourcing In Finance

Payroll and tax remain the most often outsourced functions for accounting and finance departments in the United States and Canada, according to a new survey.

Outsourcing of payroll occurs at nearly half of US and Canadian companies participating in the fifth annual benchmarking survey released jointly in May by staffing services firm Robert Half and Financial Executives Research Foundation, the research affiliate of Financial Executives International.

Forty-seven percent of US companies and 47% of Canadian companies reported outsourcing payroll. The largest companies are more likely to outsource payroll, as 73% of US companies in the survey with revenues of US$5 billion or more outsourced this function.

Nearly 1,600 companies – 79% from the United States and 21% from Canada – participated in the survey.

The payroll outsourcing percentage was slightly higher in the United States compared to 2013 (46%). The percentage of Canadian companies outsourcing payroll dropped from 54% in 2013.

Outsourcing of tax rose in 2014 among respondents in the United States (42%, up from 30% in 2013) and Canada (37%, up from 31%).

Other findings from the 2014 survey included: