Payroll outsourcing services refers to the allocation of some of your business process to an external firm to manage your company’s payroll functions to
- save time and money,
- reduce the need for in-house staff,
- purchase and maintain appropriate payroll software,
- and stay compliant with the regulations.
Well said “The other part of outsourcing is this: it simply says where the work can be done outside better than it can be done inside, we should do it.” – Alphonso Jackson – Former United States Secretary of Housing and Urban Development
Payroll outsourcing services includes:
- Processing of employee payroll
- Monthly calculation of TDS, PF, PT and other payroll related statutory liabilities
- Monthly payment of EPF and ESI and generate challans
- Salary disbursal
- Monthly Distribution of payslip
- Final Settlement in case of left employees
- Assisting employees with their PF/ESIC queries and withdrawals
Payroll being an important function for any organization requires specialization, knowledge and time to time application of the new regularizations in processing the payroll of employees.
The main cause behind going with these services is one that the service provider firm offers the required services at a reduced cost that also facilitates the small & medium business owners.
“Do what you do best and outsource the rest.” -Peter Drucker – Management consultant, educator, and author
The employees of this external firm do not involve directly in operating the basic functions of a business. They do not contribute to the production of goods for sale, but they process the wages and salaries of those who do. And thus there will be 100% confidentiality and security of your sensitive payroll data.
Some service providers also offer the required software to manage your leave, attendance, reimbursements easily at your place. Payroll software offered by outsourcing companies will help you to record all the necessary data easily, efficiently and securely through the internet. It also allows you to have check the data anytime anywhere.
The biggest advantage of payroll outsourcing is that it helps the companies and employees to focus on business activities and make required enhancements, instead of spending time in bothersome tasks. So, without a doubt, we can say that payroll outsourcing services are a big boon to the people running small businesses other than building a payroll department in their existing business.
How do you know if you need to outsource your payroll?
- If you’re having problems with accuracy, compliance, or record keeping, you need a payroll partner.
- If the people you have hired to manage this function are not able to add value or if you think you need to invest a lot of time & money on their training, then you need a payroll partner
- If your payroll data is not handled sensitively, you need a payroll partner
Processing payroll doesn’t appears to be intricate, time consuming or expensive if you have the right partner and process in place. Finding the right partner & setting up process with accurate results is all we need to have the best results in Payroll Outsourcing.