Enterprises that have a sizeable workforce will find it imperative to implement some kind of payroll solution. However, outsourcing payroll may be a better option when one considers the various aspects involved.
Outsourcing payroll services to payroll companies brings a major benefit of timely completion of the monthly payroll. Enterprises with 100 plus employees particularly benefit from outsourcing since companies that handle payroll have staff and IT resources to handle any complicted payroll process.
Accuracy and compliances
Payroll is not just calculation of monthly salaries to employees. There are legal and tax compliances that must be handled in a timely manner with no margin for errors since errors of omission or commission could invite legal notices and penalties. Each employee’s calculation may be affected by factors such as loan availed, leave, basis of calculation of salary, extra remuneration. Laws applicable to employees and employers may vary from time to time and only companies that have legal cell to handle such latest amendments can ensure accuracy and full compliances. Income tax must be deducted at source and a return filed periodically. PF/EPF needs to be deducted, the appropriate forms filled in and filed with the authorities. There are similar other compliances to take care of. Legal experts and labour laws experts also guide clients on best practices, avoiding pitfalls and on other regulatory matters.
Payroll services have expertise and experience to complete the process each month in time and this leads to employee satisfaction. Further, payroll companies put in place an employee portal that gives information about salary, taxes and deductions through self service. Since payroll calculation is accurate, there is no room for dissatisfaction that errors in calculations cause. Employees receive salaries in time and it keeps them satisfied. Satisfied employees work with dedication and commitment. This in turn contributes to the company’s productivity and competitiveness.
Payroll is linked with employees. Employees are the best assets of a company. Happy and satisfied employees will be grateful and they will do all they can to improve company’s competitiveness. This means outsourcing payroll can actually cost you next to nothing. You pay for payroll outsourcing from increased revenues. The company’s image improves and it can attract top talent that will help it rise to greater levels. From another perspective, when a company outsources payroll it saves on cost of salaries paid to employees and costs of IT infrastructure. There are all round gains.
Employees in the HR section are likely to leave and new employees will take time to understand the process. This could cause discordance and discontinuity in efficient payroll management. Outsource payroll and you are assured of continuity since it is the payroll company’s responsibility and they will always have employees who know about the payroll process.
Reports, analytics, performance
This is one aspect that could make the biggest difference. In-house HR employees handling payroll may not be able to derive statistics and give analytics on performance. Payroll companies handling the process will give a detailed analytical report to help management derive insights. They get information about each employee’s performance and his pay. Management can take informed decisions that could lead to better employee performance and satisfaction besides helping to reduce payroll burden.
There is always room for optimization in any process. Payroll is a crucial process and companies offering payroll services can do it much better and in a shorter time. If you were to hire experts with similar capabilities you would incur high costs just for advice. Outsource the process and you get work done besides receiving advice from top experts for free.
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Employees are the best assets of any enterprise and need to be managed efficiently in order that they may give their best. Payroll and how it is managed can be a cause of satisfaction or dissatisfaction. It can directly affect employee performance and thereby have an influence on the company’s competitiveness as well.
Many companies choose to have their own HR department that also handles payroll. Staff may leave at any time and maintaining continuity is difficult. IT automation may not be in place and this leads to delay in preparing payroll and disbursing payment of salaries to staff in time. There may be errors in calculation of benefits and perks as well as deductions for tax and other statutory contributions. Employees may have to go through a long process should they wish to get details or get leave sanctioned. Enterprises may find that maintaining a separate HR department to handle payroll can be expensive. These and other roadblocks to performance can be removed by the simple expedient of payroll outsourcing services.
How payroll outsourcing services work
Payroll services handle everything related to payroll. Businesses simply furnish employee records and time attendance details to the payroll outsourcing services. The companies then automate the process based on sophisticated payroll processing software. The payroll companies set up a separate account for the client enter the records and assign an employee to manage the payroll process.
What the process involves
- The process of calculation of each employee’s salary is automatically calculated in the software. This results in precisely accurate calculations and timely preparation of the salary slips.
- Clients may choose to issue checks to employees or let the outsourcing services arrange for automatic check printing or direct transfer to bank accounts. Clients receive a complete report.
- Payroll outsourcing companies take care of regulatory compliances, tax deductions and statutory payments as well as filing of returns and forms.
- Their IT solution permits employees to view their complete records in a secure way, view salary slips and to submit application for leave online.
- Employees must be reimbursed for expenses they incur and this aspect is also managed by the payroll companies.
- The payroll management process also includes complete analysis of staff remuneration and performance.
- The outsourcing companies may assist with other functions such as termination pay calculation and induction of new employees and entering their name in records.
- Automated attendance
How does an enterprise benefit?
- Expertise is the key to efficient payroll processing. Employees may not be up to date with laws and regulations as well as timely compliances. This never happens with payroll management companies. They have legal experts and knowledgeable staff that ensure full compliance.
- Timely preparation of payroll and accuracy results in employee satisfaction as a result of which they feel more loyal and work better.
- Timely resolution of all employee issues and a web based self service portal.
- Continuity is assured. A business need not worry that a key employee has left and the records are in disarray.
- IT automation reduces reliance on human personnel and guarantees accuracy.
- Businesses can save on salaries they pay to employees simply to handle the payroll and associated HR functions. Outsourcing companies charge very reasonable fees.
- Businesses get insightful analytics of employee performance and can take corrective measures to improve productivity.
Choosing the right Payroll Outsourcing Services is important. Look for an established company with a team of qualified personnel and a strong IT infrastructure in place. A view of their client list will also be a pointer about their quality of service.
For More Info Visit Us On – http://www.alpconsulting.in/payroll-services.html