A service segment of the Payrolling/Compliance Industry, payrolling is a business service that provides payroll processing, pay check writing, and payroll tax administration, for a fee. Payrolling as defined here is normally provided on the basis that no co-employer or joint employer relationship exists; it is plainly an administrative function. The service can be provided by specialist payroll companies or, sometimes, directly by staffing companies. As it relates to contingent staffing, payrolling is the provision of (usually) longer-term temporary workers to a customer where the workers have been recruited (possibly interviewed, tested and approved) by the customer. In this case, the workers become, in effect, employees of the supplier providing the payroll services. This may occur in an instance when only the customer has the proper knowledge and experience to properly evaluate potential workers. Payrolling arrangements usually only involve a specific client function or position, not all or a significant portion of a client’s workforce as in a ‘PEO’ relationship (See ‘Professional Employer Organization’). The term “contractor payrolling” defines any arrangement in which a provider serves as the employer of a contingent worker on an assignment with another company, and is not responsible for recruiting. This common definition links together substantially different business models across the globe, such as the typical US payrolling model and the UK/European model where contingent payrolling is often provided by ‘umbrella’ companies (See ‘Umbrella Company’) as part of a broader compliance service when staffing firms use independent contractors to fill temporary positions. As part of the definition is that the payrolling provider be the worker’s employer, the engagement of independent contractors (ICs) does not apply to contractor payrolling. Payrolling services are typically billed at significantly lower mark-ups than traditional temporary staffing because the staffing firm or other intermediary has not incurred any recruiting costs.