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Sample Service Level Agreement for Payroll Outsourcing

When it comes to outsourcing payroll, it`s crucial to have a service level agreement (SLA) in place to ensure both parties are on the same page. An SLA outlines the expectations and responsibilities of both the outsourcing company and the client, ensuring a smooth and efficient payroll process.

Here`s an example of a service level agreement for payroll outsourcing:

1. Scope of Services: The outsourcing company agrees to provide payroll processing services, including data entry, processing, tax filings, and distribution of paychecks to employees. The client agrees to provide accurate and timely information necessary for payroll processing.

2. Turnaround Time: The outsourcing company agrees to complete payroll processing and deliver paychecks to employees on a schedule agreed upon by both parties. The client agrees to provide necessary information to the outsourcing company in a timely manner.

3. Accuracy: The outsourcing company agrees to accurately calculate payroll and taxes, and provide a report of the payroll data to the client for verification. The client agrees to review the report promptly and notify the outsourcing company of any discrepancies.

4. Compliance: The outsourcing company agrees to comply with all federal, state, and local tax laws and regulations. The client agrees to provide necessary information to the outsourcing company to ensure compliance.

5. Confidentiality: The outsourcing company agrees to keep all client information confidential. The client agrees to provide necessary information to the outsourcing company, including employee data and financial information, and to maintain confidentiality of this data.

6. Customer Service: The outsourcing company agrees to provide responsive customer service to the client, and to promptly address any issues or concerns raised by the client.

7. Termination: Either party may terminate this agreement with 30 days’ written notice. The outsourcing company agrees to provide all necessary data and documentation related to the payroll processing to the client upon termination.

This sample service level agreement for payroll outsourcing is just an example, and can be modified to suit the needs of your business. However, it`s important to have an SLA in place to ensure a smooth and efficient payroll process, and to mitigate any potential issues or misunderstandings between the outsourcing company and the client.

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