P&O2, Answers Chapter 5

PER SONNEL& ORGANISATIONHOSPITALIT Y PERSONNEL & ORGANISATION FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 5 | Answers | Questions about the chapter 2

Personnel & Organisation for the Hospitality Industry | Part 2Chapter 5 | Answers | Questions about the chapter 1. What is the most important question that you need to answer in relation to payroll administration? ‘To what extent does an entrepreneur feel confident about managing the company’s payroll administration?’ 2. What is the difference between a bookkeeper (administrative office), an accountant’s office and a payroll services company? A bookkeeper is a person who organises the accounts of one or more companies or self-employed persons. Bookkeeping involves systematically recording the financial affairs of a self-employed person, company or institution. A bookkeeper’s role is purely administrative, while an accountant is also qualified to issue a statement regarding the reliability of the data. Some companies are legally obliged to prepare a statutory audit statement, or this may be required by stakeholders. An entrepreneur can even choose to hand over his/her responsibilities as an employer to an external payroll services company. Mixed forms are also possible. When using a payroll services company, part-time employees are often employed by the payroll services company directly, while full-time employees have a contract with the company they are working for. 3. Search the Internet: what is meant by legal liability? See for example https://en.wikipedia.org. 4. What are the benefits of managing your own payroll administration? Advantages of administering your own payroll • Having your own system means that the entrepreneur is still in control over what happens. • The entrepreneur can keep a close eye on the company’s largest single item of expenditure. • The entrepreneur can see where savings can be made. • The entrepreneur can choose which parts of the system people can access. • Information is directly accessible. • Information will not be lost. • Control over your own data, and which links are made within the system. 5. What are the disadvantages of managing your own payroll administration? Disadvantages of administering your own payroll • If the entrepreneur makes mistakes or an omission, employees will be unhappy. This could include forgetting to calculate holiday pay or to pay overtime, for example. • Managing the payroll system is time-consuming, and includes data input, checking, correcting mistakes and handling the output from the system. • Knowledge can become obsolete. • If a new employee comes to work in the office, explaining the payroll system can be very timeconsuming. • A company may be too small to take on a part-time employee to handle the administration, yet this is too time-consuming for the manager to do alone. • Some entrepreneurs hate administrative work, but keep ploughing on because they assume that it is ‘just part of the job’. The entrepreneur does not enjoy doing this, adversely affecting the atmosphere in the workplace.Version 1 | 25-10-2018 | [email protected]

Personnel & Organisation for the Hospitality Industry | Part 2 5. What are the benefits of working with a payroll services company? Advantages of external payroll services • The entrepreneur knows in advance what his/her personnel costs will be. • The entrepreneur pays a fixed rate and receives one regular invoice (for all the wage and staffing costs). • The entrepreneur does not need to deal with invoices and/or declarations from bodies such as the UWV, the Tax and Customs Administration, various pensions and related insurance payments, the occupational health and safety agency, sickness insurance and accountants (in relation to payroll and personnel administration). • This limits the amount of administrative work that the entrepreneur has to do, making it much easier to handle. • It may also save you money. • For the employees, nothing much changes, except that they also benefit from the professional service provided in relation to personnel and organisational matters. 6. What are the disadvantages of working with a payroll services company? Disadvantages of external payroll services • The entrepreneur remains legally liable for the payment of payroll taxes and social insurance premiums. • If the payroll services company were to go bankrupt, it would be possible that the company would have to pay the premiums and taxes due to the UWV and the Tax and Customs Administration. • The entrepreneur pays for the payroll services provided. • Switching to a payroll services company can affect the relationship with permanent staff members. This is less relevant for part-time staff. 7. Search the Internet: what are the advantages and disadvantages for employees of working with a payroll services company? Multiple answers possible, at the discretion of the teacher.Version 1 | 25-10-2018 | [email protected]