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.
Deductions and allowances
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.
- Travel allowance of Rs 800 is tax free
- Children’s education allowance is exempt up to Rs 100 per month.
- Medical allowance is tax-free up to Rs 15000
- Investments in approved schemes are eligible for tax exemptions.
- Employees are eligible for provident fund and gratuity benefits.
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.
- Minimum wages: It is obligatory that skilled and unskilled labourers be paid the prescribed minimum rate and stay compliant with the Minimum Wages Act.
- Overtime: This is mandatory payment tow workers according to the Factory Act and Payment of Wages Act.
- Income tax: tax must be deducted when salaries exceed the prescribed limit to stay compliant with Section 192 of the Income tax Act.
- ESI and PF: Employees with salary below Rs 15000 are eligible to ESI benefits. PF is compulsory deduction with matching contribution from employer according to EPF & MP Act and Employees Provident Fund Scheme 1952.
- Professional tax is applicable and computed on gross income.
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.
What payroll outsourcing does for your business
Outsource the entire payroll and compliance process to a payroll outsourcing agency and you notice immediate benefits.
- Your company stays fully compliant with all applicable Acts and Rules and you need have no apprehensions about receiving notices and paying penalties.
- Your payroll is processed fast and you can disburse salaries right on time thereby assuring employee satisfaction.
- Payroll outsourcing takes care of preparation and printing of salary slips, leave, attendance and all related matters including provision of employee self service portal.
- All forms to various government agencies are submitted on time along with remittances.
- You receive printed records along with analytics and reports if so desired to help you manage employees and improve efficiency.
- You save on salaries you pay to HR employees and you also save office space. This more than compensates the fees you pay for payroll outsourcing services. There is continuity of services.
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.
For More Info Visit Us On – http://www.alpconsulting.in/payroll-services.html
Business relies on human resource, its best asset, for growth. However, there can be friction, especially in matters of payroll. If there are any errors in calculation then an employee develops a grievance and it affects his performance thereby affecting the company.
Outsourcing payroll management
Payroll management in India is a tricky process because it involves precise calculation of the dues and also deductions to comply with various laws and regulations. There are returns to be filed and these procedures must be done within specified time limits. A company may have its own HR department to handle payroll services but, because of turnover of employees, such employees may not possess the required expertise to handle management of payroll as efficiently as an outsourced agency can. If a business has a large number of employees then some form of automation helps but even then doing it in-house can prove to be expensive and prone to errors. This is just of the different reasons to leave such management to experts.
What payroll management services do
The right payroll management company like Alp Consulting will put in place payroll services that streamline the process and improve efficiency, reduce complaints and achieve better compliances. Some of the services one can expect are:
- Implementation of software solution for payroll management
- Self service technology to help employees view salary slips, leave, IT declaration submission and related matters
- View and/or print salary slips
- Automatic recording of attendance, leave and overtime as well as calculations
- Leave application and approval online
- Reimbursement of expenses
- Recording new employees and policies for exiting employees as well as finalization of their account
- Reports generation, and
- Filing of appropriate returns with authorities to ensure timely compliance
- Integrate with accounting
How do you benefit?
Engage an outsourced payroll management firm like Alp Consulting and you enjoy a host of benefits:
- There is continuity. Employees may leave and new employees take time to settle in which could affect the payroll process. Alp ensures consistency and continuity in the payroll process.
- Compliance with statutory laws and regulations is a major headache. You cannot expect employees to be fully up to date with all laws. An outsourced payroll service has experts to ensure timely compliance and avoid expensive fines.
- Employee satisfaction is guaranteed because such services assure timely completion of the payroll and disbursement of dues that are precisely calculated. There are no grounds for complaint.
- Businesses receive insightful reporting that help them analyze productivity of employees and implement solutions to increase efficiency.
- It costs less to hire an external agency to handle the process of payroll. If you have employees you usually pay them for the whole month while the payroll takes only a few days to handle. Why pay extra when you can get it done better at a lower cost?
Engaging the right payroll services provider
- Finding the right agency to handle the task is important. Some companies simply put in place an automated IT solution to handle routine payroll but they may not be knowledgeable about tax and regulation compliances. Their service may be cheap but it will cost when you are penalized for delays or non-compliance.
- Look for consultants that have HR specialists and legal experts on their panel in addition to IT personnel to provide a comprehensive, well rounded solution.
- An award winning consultant inspires confidence and it is proof of proven performance.
Payroll is directly connected with employees who are your best asset and it pays to have experts handle Payroll Management in order to ensure a happy workforce
For More Information Visit Us On – http://www.alpconsulting.in/
HR Outsourcing Companies offers Integrated Payroll management solutions. An integrated offering which provides 100% automated, on time and accurate payroll management along with self-service access. Their experts manage your end-to-end payroll. There are numerous different kinds of Payroll Service Providers you can think about. HR Outsourcing Companies can choose the pressure off. They can offer you the reliability that you need to ensure that your employees are paid on time, every time. In addition to its payroll services, it offers time and attendance solutions, human resources and compliance services, insurance and benefits administration. A decent Payroll Service Providers will manage all the tax regulations in order not to be worried about any dreaded penalties. If you’re interested in more comprehensive payroll solutions, think about using an expert employer organization, or PEO. Effective payroll administration can be a catalyst for this transformation. When you don’t want to manage all payroll processes in-house, you can think of payroll outsourcing to an experienced provider. As a part of the services, they also handle the payroll restructuring, payroll planning and salary restructuring of the employees, with a view to optimally plan their tax payments.
Comprehensive payroll services with flexibility through limited capabilities. We are committed to provide each Client Organization and its employee a comprehensive and all encompassing service. A good payroll service will get checks to your employees on time, taking most of the weight off your shoulders – but not all of it. The paychecks themselves may be out of your hands, but this is still sensitive information that’s immensely important to your company, so it’s critical that you pick the right service for your small business.
Following are the benefits of Payroll Service Providers:
Accurate Salary Calculation:
They do all the number crunching and ensure error free calculations and expense along with reimbursements, benefits and retirement payouts etc and take the worry out of your payroll management.
Employee Life Cycle Management:
They also manage the paperwork right from the employee on boarding till the exit to ensure you have a hassle free time from administrative functions in the firm.
Best Practices Implementation:
With their years of expertise in payroll management; they’ll help you follow the best practices in compensation & compliance management with several Payroll service providers
PAY SLIPS & REPORTS:
The employees will love this idea of anytime and anywhere access to pay slips, salary statements, flexi benefits reports, Form 16 and other useful reports. Data of past years too can be made available for viewing by the employees.
COMPLETE EMPLOYEE DATA:
Employees are allowed to view the details of their profile including information of their managers, salary hikes, PF and ESI nominations etc and any information the company usually maintains like assets given, offer letter, experience letters etc based on the rights set up by the HR.
From basic payroll management to HR, statutory compliance, complete benefits administration, leave facility and management, and time tracking, we are here to help you with it all. HR Outsourcing Companies understand how important it is for your organization to ensure error-free payroll management activities. With these extensive ranges of services, your organization can enjoy a payroll process which is timely and accurate.
Also Read – What is Statutory Compliance Management?
For More Information – http://alpconsulting.in/
To understand just how much you stand to benefit from outsourcing your payroll function, let’s take a look at all the tasks a payroll process partner like Alp Consulting undertakes:
- Getting the payroll inputs from the client
- Pulling in compensation information from branches, if any
- Validating these inputs, following up gaps
The small and medium enterprise (SME) space is highly competitive, so every rupee and every man-hour spent is crucial. Focusing on core competencies is vital in running a lean, effective organization and it makes sound business sense for an SME to outsource a process like outsourcing. Let’s look at a few of the major reasons SMEs are choosing to turn to payroll services:
- Focus on building your business: Payroll management is a complex and time-consuming affair. You want your staff to focus on activities that generate value and drive profitability; outsourcing the process frees them to do this.