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Outsourcing the payroll function means that the collection of payroll-related data is still kept in-house, but that the processing of that data is now the responsibility of a payroll supplier The supplier s facility contains a set of payroll processing programs and a related database that contains the payroll records submitted by its many customers The facility does routine payroll tax calculations on the submitted data and creates payroll checks or issues direct deposit payments back to the employees of its customers In addition to these basic tasks, the facility calculates all taxes due to various government entities and submits the tax payments along with any required tax forms Other services include the issuance of annual W-2 forms, quarterly wage reports, and the federal unemployment tax return Shifting the payroll function to such a supplier is nearly automatic for smaller firms, which can thereby avoid an array of in-house payroll costs, as well as avoiding the risk of incurring tax penalties for making late or incorrect tax payments to various government entities The decision to shift to a supplier is more difficult for large firms, who may find that the supplier s fees do not adequately offset the services rendered In this chapter,* we will explore the advantages and disadvantages of outsourcing the payroll function, cover the contractual, transition, and control issues associated with the change, and also note how the supplier s performance may be measured and managed

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(including delivery and scoring of questionnaires), to the production of reports and their delivery to feedback providers Features of such systems will include: either candidate self-service or HR control over the administration users can choose their own raters task noti cations, reminders and report delivery all automated either generic competency models can be used or they can be tailored to the organisation s needs

There are a variety of good reasons for outsourcing payroll, which has led thousands of companies to pursue this option Here are some of the reasons: Avoid filing tax payments One of the primary reasons for outsourcing payroll is to avoid having to file payroll tax payments in a timely manner The gov-

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Good practice in carrying out a 360-degree feedback process can be built into the system by providing certain constraints on what users can do In addition to 360-degree feedback, there are a host of other applications where we are seeing the Internet becoming more widely used: organisational surveys multi-rater job analysis competency pro ling individual development planning and tracking of development action plans performance appraisal performance management

* This chapter is largely adapted with permission from 4, Outsourcing the Accounting Function, in Outsourcing by Bragg (Hoboken, NJ: John Wiley and Sons, 1998)

In addition, all the assessment procedures used in selection can be applied to post-hire development as well (eg through the use of virtual development centres)

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ranges are then used to compute the location of the claimant This is illustrated in Figure 715 Now consider that the claimant s location has to be faked to another location inside the same triangle This could be either because the claimant is malicious or because an external attacker desires it In such a case the claimant s distance to one of the veri ers has to be increased while the range to at least one of the other veri ers has to be reduced in order to keep the position consistent This is due to the fact that, when an object located within a triangle moves to a different position within the triangle, the object will certainly reduce its distance to at least one of the three vertices of the triangle while possibly increasing the distance to at least one of the other two vertices in order to ensure that the resulting location is consistent We show this in Figure 716 Here a node present at location A desires to appear at one of locations B or C or D, but this requires distance reduction to at least one of the other two veri ers, which is impossible given the basic property of distance bounding Thus, such an attack can be detected since distance reduction is not possible in this scheme The authors in [160] provide an algorithm based on VM In the rst step of the algorithm (which corresponds to the ranging phase), all the veri ers within the RF range of the claimant perform distance bounding to the claimant and obtain the distance bounds These distance bounds as well as the identities (more precisely the locations) of the veri ers are then reported to a central authority for use in the computation phase in order to determine the location of the veri er The central authority then computes an appropriate estimate of the claimant s position using this data and a computing technique such as MMSE (that ensures robust position computation) Finally, in step 3 of the algorithm the central authority executes two tests The rst test checks if the distance between each of the veri ers and the claimant using the computed position differs from the measured distance bound by less than a threshold This test veri es whether any of the distance bounds were enlarged as compared with the computed location The second test checks if the calculated location of the claimant falls within at least one physical triangle formed by a triplet of veri ers If both these tests are true then the authority accepts the computed location as correct If either of these tests fails, then the computed location is not accepted If any of the distance bounds are incompatible using the estimated position, then it implies that there might be a possible enlargement attack The authority can then try to detect the enlarged distances This might be possible if a large number of veri cation triangles can be formed around the claimant When.

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