Complications in payroll management grow when the number of employees in a company goes up. Companies may employ people on monthly salary, contract and on daily or weekly wage basis and these further add to the burden. Payroll is not just calculation of money to be paid for work done. There are additions and deductions to be considered as well as compliance with myriad government regulations that keep changing from time to time. The HR department has to be competent but the entire process easily can be outsourced.
Employees, according to their classification, may be eligible for allowances such as travel, leave travel, children education, medical allowances, overtime and other perquisites and these too have applicable rules.
At the same time, in cases where it is applicable, income tax must be deducted at source according to section 192 of the IT Act 1961 if salary exceeds prescribed limit and form 16 and 24Q must be filed.
PF and similar deductions must be accounted for and forms submitted with authorities in a timely manner.
These and others need to be considered for payroll preparation. Leave it to payroll outsourcing services and you have no worries about these and about statutory compliances.
Payroll outsourcing also ensures that your company stays fully compliant with all the myriad applicable laws, rules and regulations.
Gratuity must be paid to employees when they leave the job after completing five years of service according to rules. There may be fresh amendments and rules from time to time and it becomes difficult for HR employees to stay current. Payroll outsourcing services have a legal cell to assist them and ensure full compliance.
Outsource the entire payroll and compliance process to a payroll outsourcing agency and you notice immediate benefits.
One concern is confidentiality and security of data and in this regard you can trust outsourcing services like Alp Consulting to keep your data fully secured.