Why should you outsource payroll? What are its benefits? Most Indian HR and finance heads are known to be confused with regards to the utility and benefits of giving the tasks of payroll processing to third parties.
If you are one among them, then this article will help you understand the benefits of outsourcing payroll rather than doing it in-house.
Benefits of Payroll Outsourcing
Outsourcing payroll in India will give your business the right edge in 2018. Here are some important benefits that are lying in wait for you if you decide to go the full way.
1. Time Savings & Productivity
Payroll processing, be it with regards to Employee Provident Fund or something else, is a cumbersome and time-consuming affair. You have to take care of garnishments, benefit deductions, new hires, terminations, regulation changes, payroll-based compliance and a host of other frustrating tasks.
On a yearly basis, you will find a significant number of hours being spent preparing payment invoices and payroll reports (along with a host of other documents), updating employee information, etc. By outsourcing payroll, you can help the in-house HR and finance teams concentrate on their core activities and other strategic tasks to impact the organization’s bottom line favorably – one pay period after the other!
2. Cost Reductions
The direct expenses linked to payroll processing are likely to plummet by outsourcing the work on hand to experienced payroll management companies in India. This especially rings true if you have more than 30 employees to take care of with respect to calculating and paying their salaries, updating their leave and other records, handling their Employee Provident Fund accounts, and so forth.
The time and manual effort spent in performing various payroll-related activities, in terms of money, is certainly a lot. Not to mention the salary and perks payable to the employees in the payroll department in-house. One of the many benefits of outsourcing all payroll related work is that you can get the tasks completed through professionals in the field of payroll management. They have the right tools and technology to perform the task in the most efficient of ways – and that too at reduced overall costs to bring you good savings.
3. Avoid Penalties and Mistakes
Concerned about complying with the rules and regulations guiding your company’s Employee Provident Fund or the other legalities pertaining to payroll? It is natural for you to think about omitting all possible errors so as to evade unnecessary penalties for incorrect or late filings. These penalties turn out to be very costly in terms of taking a toll on organizational finances and market reputation alike. Moreover, in case you get flagged by the requisite governmental authorities, there is a spate of legal actions and repercussions that will come your way.
As these mistakes may lead to more audits and further penalties, it is best to nip them in their bud by outsourcing the task to professionally trained payroll providers in India. Along with being updated with the rules, regulations and alternations in tax rates and Employee Provident Fund regulations, these providers are adept at calculating payroll taxes, managing filings and payments, etc. They will take care of all challenging regulatory issues, keep you in sync with all payroll-affecting changes, and guide you on the right path to compliance – thereby saving the costs and headaches of making serious mistakes.
Conclusively, it would suffice to say that if you have been facing productivity and profitability issues with regards to payroll processing then it is time to make some positive shifts. By leveraging the key benefits of outsourcing payroll activities, you may look forward to placing your organization in front of all competition – Just go for it!