Human Resource FAQs
1. What’s the difference between gross pay and net pay?
Answer: Gross pay is your earnings before deductions like taxes or benefits. Net pay is what you take home. These calculations need to be precise, which is why many employers outsource payroll — it ensures accuracy, avoids costly errors, and helps employees feel confident about their paychecks.
2. How often do employees get paid?
Answer: Pay frequency varies by employer, usually weekly, biweekly, semi-monthly, or monthly. Outsourcing payroll helps businesses run pay cycles smoothly and on time, giving employees consistent paychecks without administrative delays.
3. Why is there a difference between my final pay stub and my W-2?
Answer: Pay stubs may reflect pre-tax deductions or timing differences, while W-2s show taxable wages. Outsourced payroll providers specialize in year-end reporting and compliance, reducing confusion and ensuring tax documents are correct.
4. What does a payroll and benefits specialist do?
Answer: They manage payroll processing, benefits administration, and compliance. Many companies outsource this work to providers who bring advanced systems and dedicated experts, which helps streamline employee support and reduce internal workload.
5. How do you ensure accuracy and compliance in payroll?
Answer: Internal HR teams use audits and tax updates, but outsourcing payroll offers added protection. Providers stay on top of federal and state law changes and apply compliance automatically, minimizing risk of penalties.
6. How would you handle a payroll error?
Answer: Errors must be corrected quickly, with transparent communication. Outsourced payroll solutions prevent most errors with automation and, if issues arise, offer dedicated help so employees receive timely fixes.
7. When is open enrollment and what is it?
Answer: Open enrollment is the annual period to elect or change benefits. Outsourced benefits platforms make the process easier with employee self-service portals, decision-support tools, and reminders to avoid missed deadlines.
8. Am I eligible to enroll in benefits?
Answer: Eligibility depends on hours worked and company policy. Outsourced HR systems automatically track eligibility and notify employees, ensuring no one misses out on benefits they qualify for.
9. Can I add family members to my benefits?
Answer: Yes, usually during open enrollment or after a qualifying event. Outsourced benefits systems make it simple to add dependents, upload documents, and get approvals quickly.
10. What happens if I miss open enrollment?
Answer: Without a qualifying event, you’ll wait until the next period. Outsourced benefits administration helps by sending reminders and offering support so employees rarely miss their chance.
11. What deductions come out of my paycheck?
Answer: Typical deductions include taxes, retirement contributions, and benefit premiums. Outsourced payroll ensures these deductions are accurate and transparent, giving employees a clear view of where their money goes.
12. How do I know what health insurance will cost me?
Answer: Your costs depend on plan type, coverage level, and employer contributions. Outsourced benefits platforms often provide cost calculators and side-by-side comparisons so employees can make informed decisions.
13. Can I change my benefits mid-year?
Answer: Only after a qualifying event like marriage or birth. Outsourcing benefits makes reporting life changes easier, with portals to upload documentation and faster approvals.
14. When and how do I enroll in benefits?
Answer: Enrollment is done during open enrollment or after qualifying events, usually online. Outsourced benefits administration simplifies the process with 24/7 platforms and live support.
15. What benefits am I eligible for?
Answer: Eligibility varies by company and role, but often includes health, retirement, and paid leave. Outsourced providers automatically manage eligibility, helping employees avoid confusion and missed opportunities.
16. What happens to my benefits if I leave the company?
Answer: You may continue coverage under COBRA or roll over retirement accounts. Outsourced benefits providers streamline the offboarding process, ensuring departing employees understand their options.
17. What are employee benefits and perks?
Answer: Benefits are formal programs like health insurance and retirement, while perks may include wellness stipends or discounts. Outsourcing can expand access to affordable, modern perks by leveraging provider networks.
18. What are common fringe benefits?
Answer: They include tuition assistance, wellness programs, or commuter benefits. Outsourced providers can negotiate better rates and broaden the options available to employees.
19. How do cloud-based payroll systems help?
Answer: They allow secure, real-time payroll processing and access. Outsourced payroll providers usually operate in the cloud, giving employees self-service portals to view pay, W-2s, or update information anytime.
20. What should I ask HR about benefits when considering a job offer?
Answer: Ask about coverage levels, costs, and flexibility. Employers who outsource benefits can usually provide detailed cost breakdowns, comparisons, and easy-to-understand plan information.
21. What is FMLA and who is eligible?
Answer: The Family and Medical Leave Act allows eligible employees up to 12 weeks of job-protected unpaid leave. Outsourced HR providers track eligibility and paperwork, ensuring compliance and reducing errors.
22. Do I need to keep old pay stubs?
Answer: They’re useful for verification, though many employees rely on digital access. Outsourced payroll gives employees secure online records, eliminating the need to store paper copies.
23. What is a qualifying life event?
Answer: Events like marriage, divorce, or birth allow mid-year benefit changes. Outsourced benefits systems make it easy to report these changes online and provide clear instructions.
24. Why are my taxes different this paycheck?
Answer: Changes in hours, bonuses, or withholding elections can affect taxes. Outsourced payroll ensures calculations follow IRS rules and provides tools for employees to review or adjust their elections.
25. Can I get paid early?
Answer: Some employers offer on-demand pay. Outsourced payroll providers often integrate earned-wage access solutions that let employees access funds before payday.
26. How are bonuses taxed?
Answer: Bonuses are taxed at supplemental rates or combined with regular wages. Outsourced payroll providers apply the correct method automatically, avoiding mistakes.
27. How do I sign up for direct deposit?
Answer: Submit your bank details via HR or your payroll portal. Outsourced payroll makes this simple with secure employee self-service platforms.
28. What is COBRA insurance?
Answer: COBRA allows continuation of health coverage after leaving employment. Outsourced benefits administrators manage notifications, enrollment, and payments so employees don’t lose coverage.
29. What is a 401(k) match?
Answer: It’s when an employer contributes to your retirement account alongside your own contributions. Outsourced benefits providers ensure contributions are processed correctly and on time.
30. How are overtime wages calculated?
Answer: Typically 1.5x regular pay after 40 hours weekly. Outsourced payroll automatically tracks hours and calculates overtime to avoid compliance issues.
31. What is workers’ compensation?
Answer: It provides wage replacement and medical benefits for job-related injuries. Outsourced HR providers handle claims administration and compliance reporting.
32. Why did my paycheck change after enrolling in benefits?
Answer: Benefit premiums are deducted from your paycheck. Outsourced payroll and benefits providers synchronize systems so deductions are accurate and transparent.
33. How are PTO balances tracked?
Answer: PTO is tracked by hours worked and employer policy. Outsourced HR systems give employees self-service access to view balances and request time off.
34. What happens if payroll is delayed?
Answer: Employees may experience financial stress. Outsourced payroll helps avoid delays by guaranteeing on-time processing and offering contingency support.
35. What is an employee assistance program (EAP)?
Answer: It’s a confidential support service for personal or work issues. Outsourced HR providers often bundle EAP services, giving employees broader support options.
36. How are performance reviews handled?
Answer: Typically annually or semi-annually with manager feedback. Outsourced HR partners can implement technology platforms that make reviews more consistent and constructive.
37. Can payroll mistakes affect taxes?
Answer: Yes, mistakes can result in incorrect withholdings or penalties. Outsourced payroll reduces this risk with advanced compliance checks and audit trails.
38. What is an HSA?
Answer: A Health Savings Account allows pre-tax savings for healthcare expenses. Outsourced benefits providers often administer HSAs directly and provide employee support.
39. What is an FSA?
Answer: A Flexible Spending Account lets employees set aside pre-tax money for medical or dependent care expenses. Outsourced HR handles contribution limits and reimbursement claims.
40. How do payroll taxes work for remote employees?
Answer: Taxes depend on work location and state laws. Outsourced payroll providers manage multi-state compliance, which is especially valuable for companies with remote teams.
41. What is garnishment and how does it affect pay?
Answer: Garnishment is a court-ordered deduction from wages. Outsourced payroll ensures garnishments are processed legally and discreetly.
42. Why did I receive a corrected W-2?
Answer: Corrections happen if an error was discovered. Outsourced payroll minimizes mistakes but also provides fast corrections and communication when needed.
43. What are the benefits of direct deposit over paper checks?
Answer: Direct deposit is faster, safer, and more convenient. Outsourced payroll makes setup easy and provides employees with secure access to pay information.
44. What is PTO payout upon termination?
Answer: It depends on state law and company policy. Outsourced payroll and HR providers ensure compliance and accurate final paychecks.
45. What is the difference between exempt and non-exempt employees?
Answer: Exempt employees are salaried and not eligible for overtime; non-exempt are hourly and must receive overtime pay. Outsourced HR ensures proper classification to avoid legal issues.
46. How do I update my tax withholding?
Answer: By completing a new W-4 form. Outsourced payroll systems allow employees to update forms digitally, reducing errors and delays.
47. What benefits help with employee retention?
Answer: Health insurance, retirement, flexible work, and career development are key. Outsourced HR partners help design competitive packages tailored to employee needs.
48. How are pay raises decided?
Answer: Raises are based on performance, market benchmarks, or company policy. Outsourced HR consultants provide salary benchmarking and compensation strategy support.
49. How do payroll systems integrate with time tracking?
Answer: Through automated data transfer from time clocks or software. Outsourced payroll solutions include these integrations, reducing manual entry and errors.
50. Why do companies outsource HR, payroll, and benefits?
Answer: Outsourcing reduces administrative burden, improves compliance, provides access to modern technology, and enhances the employee experience. It allows business leaders to focus on growth while employees enjoy reliable support.