Current Attempt in Progress Dynatech & Blossom, a legal services firm, is considering outsourcing its payroll function. It has received a bid from ABC Payroll Services for $21,850 per year. ABC Payroll will provide all payroll processing, including employee checks and payroll tax reporting. Dynatech & Blossom's costs for payroll processing in-house over the past year were as follows: Cost Payroll clerk (part time) Annual cost of payroll processing software updates Human resources manager's salary Depreciation of computers used in payroll processing Annual payroll tax update seminar costs for one employee The annual impact of outsourcing payroll Amount $ The company will $11,620 1,020 25,100 Currently the payroll clerk works only on payroll processing, and will be laid off if payroll is outsourced. The human resources manager spends 25 percent of her time currently on payroll-related issues. She will be retained at 100% even if the company outsources. The computers would remain and be used for other tasks if payroll is outsourced. What is the annual impact of outsourcing payroll? 2,040 $1,450 Will the company save money or spend extra money if payroll is outsourced? extra money if payroll is outsourced.

Current Attempt in Progress Dynatech & Blossom, a legal services firm, is considering outsourcing its payroll function. It has received a bid from ABC Payroll Services for $21,850 per year. ABC Payroll will provide all payroll processing, including employee checks and payroll tax reporting. Dynatech \& Blossom's costs for payroll processing in-house over the past year were as follows: Currently the payroll clerk works only on payroll processing. and will be laid oft if payroll is outsourced. The human resources manager spends 25 percent of her time currently on payroll-related issues. She will be retained at 100% even if the company outsources. The computers would remain and be used for other tasks if payroll is outsourced. What is the annual impact of outsourcing payroll? The annual impact of outsourcing payroll Will the company save money or spend extra money if payroll is outsourced? The company will ixtra money if payroll is outsourced