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
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
As businesses grow, employee management becomes complex. What you need is a Payroll Management System that is easy to use, employee-centric and HR effective. Whatever stage of business cycle you are in, payroll services is sure to benefit you. HR outsourcing companies offers a new age Payroll Management System to manage new-age workforce.
The Payroll Management System allows you to take your human resources management to a higher level. Even the top payroll providers in India understand the importance of error-free payroll management activities. With extensive range of services, your organization can enjoy a payroll process which is timely and accurate.
Here are some of the payroll services that are provided by HR Outsourcing Firm:
Employee Self Service (ESS): Online technology for employees ensures to view salary slip, submit IT declaration, decide FBP, submit query , Online Access to View/Print Salary Slip , Automated Attendance, Leave Import/Export Solution , Web-based Leave Solution , Reimbursement Management , Replace Excel to Web-based Processing of Payroll, Reimbursement, F&F, Reports Generation, E-challan Generation. Effective payroll administration can be a catalyst for this alteration. You can think of payroll outsourcing as an experienced provider, when you don’t want to manage all payroll processes in-house. A reliable payroll outsourcing company offers efficient and better payroll management process for your organization.
Managing payroll entirely within your organization can be a headache because of stiff penalties for non-compliance to statutory requirements, and other issues that are not straightforward. It may seem simple from the outside, but many companies that do their own payroll processing discover that it may not be all that cheap and simple, especially when you consider the time that is spent in managing the entire process. With Payroll Management System you can rest assured that you are with one of the best payroll companies in all aspects of human resources management services, including payroll.
Payroll management consists of a lot of stages and procedures that require expertise in the department. Payroll software offers lots of different advantages – for the user, the employees and the company. This article looks at some of the most obvious advantages to expect when you make use of payroll software:
- Calculating and paying wages, settlement of tax withholdings
- Delivery of wage calculations and certificates to the employees
- Compiling statistics for different authorities, and for the purposes of improving activities
- Drawing up employment contracts
- Providing regulatory reports to the tax agencies and insurance companies
- Calculating annual holidays
- Managing deductions for employee benefits
From all the basic payroll management to HR, statutory compliance, complete benefits administration, leave management, and time tracking, we are here to help you. Schedule a consultation with us right away to learn more about the advantages offered by a HR outsourcing company.