On Roll/Off Roll Payroll
On-roll and off-roll are terms commonly used in payroll to distinguish between employees who are directly employed by a company (on-roll) and those who are employed through a third-party or contractor (off-roll).
- On-roll Payroll: On-roll employees are individuals who are directly employed by the company and are typically considered permanent or regular employees. They have a formal employment relationship with the company, receive a salary or wages from the company, and are entitled to various benefits and protections as per employment laws and company policies. The company manages their payroll, deducts taxes and other statutory contributions, and provides them with benefits such as paid time off, health insurance, retirement plans, and other employee perks.
- Off-roll Payroll: Off-roll employees, also known as contract or temporary workers, are individuals who are employed by a third-party agency or contractor, rather than being directly employed by the company where they provide services. Off-roll employees may be engaged for a specific project or a temporary period and may work on a fixed-term contract or as independent contractors. The payroll responsibilities for off-roll employees typically rest with the third-party agency or contractor, who may be responsible for paying their wages, providing benefits (if any), and managing their employment-related obligations.
It's important to note that the terms 'on-roll' and 'off-roll' may have variations in different regions or countries, and the specific employment arrangements and legal considerations can differ. Organizations often use off-roll employees to meet short-term or specialized staffing needs, maintain flexibility, or manage specific projects. The distinction between on-roll and off-roll employees in payroll helps in determining payroll processing, benefits administration, and compliance with applicable labor laws and regulations.
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