Outsourcing Payroll Services – Is it a Wise Decision?
The most challenging department for any company to handle is the payroll department. Since it does not directly contribute to the core business, therefore, it always remains a burden for any company. The problem further increases especially when the whole process is handled manually. Handling the things manually in an accounts department means investment in the form of a huge team of accountants as well as on the top of it, inefficiencies in the day to day tasks.
Therefore to curb the issue, outsourcing the payroll department is a wise solution. It does not only makes the accounting process more efficient and effective but also helps in saving lots of costs.
With a cloud-based self-service portal which is also called as web payroll, the companies can do away with the need of a huge team of accountants. The employees of the company, without the need of the accountants, can interact with the portal and resolve their tax related investment declarations, check their pay slips, get their questions answered with the help of the accountants sitting in the outsourced third party payroll management company.
While a cloud-based online web payroll makes a lot of sense for the employees, at the same time it also is essential for the HR and the finance team. The finance team can easily extract the data from the portal required for cost booking, can carry out tasks like reimbursement and salary budgeting on real-time basis, can do tax computations accurately with the help of preset templates in the portal. Similarly, the HR team benefit by accessing various real time MIS reports easily.
While choosing a company for outsourcing your payroll department, make sure their online payroll has the following features:-
The graphic user interface of the software should be user-friendly. Since the company would want their employees to spend minimal time on it and focus more on their day to day work. Therefore, the number of clicks should be minimum and the processing speed of the online payroll should be as fast as possible.
Make sure that the outsourced company offers a prompt and quality service to the employees of the companies in addressing to their day to day queries. You can always refer to the existing clients for the feedback of their services.
Tax compliance is a big burden for any company. Therefore be careful to check for the efficiency and capacity of the company in addressing to the new tax rules that come up frequently and its ability to address the employees as and when needed.
Since it’s the employee and the company data that you would be sharing with a third party, therefore, you need to make sure that the service provider uses strong security measures to prevent the theft of your company’s data. A secure socket layer in the online portal is a must in ensuring immunity against any kind of infection or foreign attack.
The online payroll portal should be scalable in nature to handle the company’s data, gradually as it grows. The speed of the system should not get affected by the amount of data. Also, it should have enough bandwidth to handle multiple employee logins at the same time.
To know how Paysquare can help to manage your Payroll process, please contact us today! Free consultation