Every organization needs to follow some government set guidelines and laws which are related to taxes, employees, and payments. These guidelines and laws fall under statutory compliance. When an organization fails to maintain statutory compliance, penalties and fines are imposed by various authorized bodies. This is why obeying statutory compliance in India is important.

In this article, we will discuss the basics of statutory compliance management and ways to stay away from penalties through statutory compliance list.

What is Statutory Compliance?

Statutory compliance in HR indicates a legal framework that allows organizations to operate according to a certain structure. This structure is generally related to the employees of the organization.

However, this structure doesn’t always remain the same. According to the changes in the HR landscape, the governing authorities keep changing the statutory compliance requirements as well.

As a result, a major portion of the HR budgets goes into ensuring compliance and maintaining the integrity of the systems. From wage payments to professional taxes, statutory compliance demands organizations to stay updated with the latest rules during HR operations.

Need For Statutory Compliance Management

Adhering to the compliance keeps every small and big organization away from legal issues. A deep understanding of statutory laws allows these organizations to minimize or mitigate the risks related to non-compliance.

However, the number of rules that Indian Organizations have to follow to maintain statutory compliance often takes the edge away from the company. Even after careful supervision and scrutiny, companies find themselves approaching towards non-compliance or non-adherence.

Hence, to help you follow the statutory compliance without any hassle, we have prepared a statutory compliance updated checklist. You can follow this checklist to stay updated with the current laws and regulations.

Updated Checklist for Statutory Compliance 2020

• • The Employees Provident Funds and Miscellaneous Provision Act – 1952 (EPF)
  • Shops and Commercial Establishments Act (S&E)
  • The Employees State Insurance Corporation Act – 1948 (ESIC)
  • The Labour Welfare Fund Act (LWF) 1965
  • The Professional Tax Act (PT) 1975
  • The Minimum Wages Act-1948
  • The Child Labour (Prohibition & Regulation Act), 1986
  • The Payment of Wages Act-1936
  • The Maternity Benefit Act-1961
  • The Contract Labour (Regulation & Abolition) Act – 1970 (CLRA)
  • The Payment of Bonus Act-1965
  • The Industrial Establishment (N&FH) ACT 1963
  • The Payment of Gratuity Act-1972
  • The Employment Exchange (Compulsory Notification of Vacancies) ACT-1959
  • The Equal Remuneration Act-1976
  • The Apprentice ACT, 1961
  • The Industrial Employment (Standing Orders) ACT 1946 – Model Standing Order Only
  • Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) ACT, 2013
  • The Industrial Disputes ACT 1947
  • The Employees Compensation ACT-1923
  • The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) ACT, 1979
  • The Trade Unions Act, 1926

Statutory Compliance in India

Although every organization needs to follow the above checklist for statutory compliance, here are some of the basic rules and laws that are extremely important. These rules are also the ones which face maximum errors, so, understand these carefully.

Minimum Wages

The minimum wage act, as mentioned above, defines the minimum amount of money that any worker should get to ensure optimal requirements of the worker are met. This wages act doesn’t only look after the requirements in terms of money but also offers medical help, education, and other relief.

Since this act is a state’s matter, any organization is expected to follow the act as per the relevant state guidelines.

TDS

Every employer is expected to deduct TDS of employees as per the guidelines of the act. Of course, a lot of employees don’t come under tax bracket, but as an organization, it is the HR’s responsibility to deduct TDS wherever applicable.

Further, the HR team also needs to produce Form 16 and other necessary documents for the employees. This helps in filing returns so it is important for the HR team to create these documents on time.

ESI and PF

Any employee with a salary INR 15,000 or less is expected to pay ESIC deduction every month. The HR team, on the other hand, is expected to deduct this amount and pay it to the ESIC department to allow employees to gain health benefits.

PF is another compulsory deduction. This money is saved in the PF account and can be withdrawn only after a certain period of lock-in. The PF act is offered with the aim of helping the employee save some amount of money for the future purpose.

Gratuity

If any employee in the organization completes 5 years of service, the company offers gratuity to the employee. The gratuity amount is deducted monthly from the salary of the employee on a regular basis.

Why Statutory Compliance is Important?

• 1. With compliance, a lot of factors related to a company are attached. For instance, if a company suffers non-compliance related to the TDS, the company’s reputation is put at stake. The existing employees start doubting the efficiency of the company and the potential employees may not even join because of this.
  2. One of the biggest reasons for statutory compliance is to offer equal treatment to every employee of the organization. This equality comes from many of the laws and rules mentioned above in the checklist. Many times, different workers are made to work different hours and other times, wages differ based on multiple factors. To avoid this, statutory compliance offers a clear pathway.
  3. Due to statutory compliance, there are clear guidelines for tax payments. This not only helps the taxpayers to pay tax on a timely basis but also allows the tax-collectors to easily collect due tax on a timely basis.
  4. If statutory compliance is not maintained, customer loyalty is severely hampered. Just as employees start doubting the organization for poor compliance structure, customers are also unwilling to work with organizations that have a poor statutory compliance structure.
  5. Another big reason for maintaining statutory compliance in financial losses. When non-compliance penalties and fines are imposed on an organization, financial losses follow. This can disrupt the cash flow to a great extent.

Things to Remember

Below we have mentioned some of the things that companies should remember for statutory compliance:

• 1. Every organization is required to maintain books and accounts with accuracy to keep details of every transaction of the company. These books should be maintained in accordance with the accounting standards.
  2. According to the nature and the type of the organization. TDS should be submitted and returns should be filed on time.
  3. As per the law requirements, multiple companies are expected to conduct an audit. This should be achieved as per the requirements of the law.
  4. Other than all the above requirements, the proper documentation pertaining to the establishment and registration of the organization should be secured at all times.

Conclusion

Statutory compliance is an important part of every organization. However, statutory compliance is still extremely difficult. Hence, we have created a checklist above and mentioned a few tips to help you cope up with the compliance demands of your organization.

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As COVID-19 is disrupting the world, – every market, every industry, and everything else that we can think of – the world is turning to freelancers or temp staffing. The situation is the same with businesses because temp staff offers more flexibility and cost-effective functioning.

Looking at the current situations, it is likely that the culture of temporary staffing in India will only grow. Hence, to help you adopt the increasing demands of temp staff in India, we have explained everything you need to know. Dive in and start reading.

What is Temp Staffing?

Before we understand how temp staffing is changing and what are the growth options with temp staffing solutions in 2020, let’s see what is temp staffing.

As the name suggests, temp staffing means hiring temporary staff. Of course, a lot of questions come to mind after reading this:

What is the pay?

What is the procedure?

What does temporary staff mean?

What does temporary hiring mean?

Let’s understand all these questions with an example:

John is the manager of a company and he has pitched 10 clients in the previous months. However, John’s company doesn’t have enough employees to handle the demand. Apparently, they also don’t have an HR team to handle the hiring. Further, the company is not right in a position to hire a full team of HR employees to fulfil the demands.

Is it okay for John’s company to leave it to fate?

Or is it the right route to hire so many employees?

Certainly not. Temporary staffing services in India can help in this case. John’s company can hire temporary staff, who are hired on a fixed salary on a project basis. Once the project ends, the contract ends.

In simple words, here are the features of temporary staff:

• • You can hire staff on a temporary basis.
  • This staff is hired on a contract for a particular time period or a project.
  • You can decide the payment mode beforehand.
  • You don’t have to take care of this staff and offer them benefits.
  • You don’t have to pay an additional salary after the work is completed.

How Temp Staffing Helps Your Organization Grow?

Traditionally, temp staffing companies in Pune were not that popular. But, with changing demands and workplace environment, it is now more feasible for organizations to hire staff on demand.

Let’s move forward and understand how temporary staffing in India can help you grow your organization and improve cost-effectiveness.

Perfect Workload Spread

Think about it, if you are a startup, then hiring a full-time team can be much costlier than hiring temp staff. Hence, naturally, you may hire less full-time staff when compared to hiring temp staff.

As a result, with fewer full-time employees, the workload is not evenly spread. So, each of the employees is almost always overloaded with too much work. They are devoid of work-life balance and employee satisfaction also reduces.

Hiring temp staff can improve the situation. Whenever you have a new project coming in, for which you don’t have enough people, you can hire temp staff. These people will work on a project basis and even help you complete it before the deadline. Your full-time employees may not be overloaded and the workload spread will be perfect.

Proper Skills

Due to the lack of skill spread, many times, one employee has to assume different roles. This also reduces efficiency and increases the work of the employees. Further, sometimes, asking one employee to do several roles of different skill-sets fails to offer expertise. This can reduce the efficiency of the project.

Hiring temp staff also means getting people who are dedicated to one field. These people know what they are doing. Thus, the outcome is much better.

Hiring a full-time expert can prove to be very costly. This is also why temp staff is great for startups and mid-sized organizations.

Eliminate Orientation

When you hire any full-time employee, your HR team has to spend a lot of time in grooming these employees. This is to help them adjust to the environment and workflows of the office.

However, temp staff is not here to stay, so, they are used to getting to work as soon as they arrive. These people might start working immediately after you brief them. Hence, in a way, a temp staffing agency can reduce your hassle and HR team’s work. They can focus on improving the productivity of their existing employees and focus on more strategic roles.

Scale Capacity

When you don’t have proper staff, you are unable to scale your capacity and operations. This is because if you are unable to hire and take care of more full-time employees, you are unable to get in projects or introduce services that your current staff can’t handle.

Temp staffing eliminates this issue by offering staff on-demand. You can scale your operations, introduce new services, and innovate new products.

Importance of Temporary Staffing in India

By far, we have discussed how temp staffing can help us achieve business growth. In this section, we will discuss the importance of temporary staff.

Moving Beyond Economic Uncertainty

There are multiple reasons because of which temp staffing in India is more important now. We have discussed many of these reasons in the previous section.

One of the major reasons for this shift is economic uncertainty. Right now, we are experiencing a complete lockdown and coronavirus has completely disrupted the market. In a situation like this, a lot of companies are losing their hard-earned money. Client responses are slow and overall every industry functioning has slowed down.

Here, there are two types of companies and one of these is finding it fairly easy to survive.

1. 1. Companies that have only full-time employees are struggling to pay employees because they are not making any money and most of their employees are not doing any work.
   2. Companies that have some full-time employees and some temp staff are struggling but the situation is better because they are able to still utilize their few full-time employees.
   3. The second type is surviving better in this environment than the first type. Although we have this situation now, even when the lockdown lifts and market go up, the second type would be able to adjust better. This is because they may be easily able to scale their requirements of temp staff without hassle in a cost-effective manner.
   4. However, the first type may have to spend a lot of money on hiring employees and maintaining them. Overall, the situation may hit the first type harder than usual.

Here’s another example:

If you have 5 employees and you have a project which doesn’t match the expertise of any of the employees, what would you do?

Hiring is not always the best route. If you take in temp staff, you can complete the project with this employee and end the contract. You don’t have to keep paying the employee for the months you don’t have any requirements. It is simply hassle-free, cost-effective, and extremely beneficial for short-term projects.

Conclusion

Temporary staffing is an effective route that can not only help small and mid-sized organizations but also aid the functioning of large companies. The fluctuating demands of the organization or department can be easily handled in a cost-effective manner through temp staff.

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The labour law is a broad word and covers almost all the aspects which can help one to have proper benefits with a job in a company. At the same time, it also takes care of the industries that employ people in different positions and help earn a livelihood. Before proceeding to the types of labour laws, one needs to understand the benefits of labour laws. Here one needs to know that many laws vary from state to state, and hence the laws here are discussed in reference to the central laws only. As per the labour laws, it is mandatory for every organization to have labour law compliance India which guides the industries in the right direction, and noncompliance of the same can lead to penalty and punishment also.

Who is the principal employer under the PF act?

As per the provision of laws, the one who has more than 20 employees working is responsible for having registration with PF authorities. It is made mandatory under the EPF Act. Here one needs to know that the government has made specific provisions for offering benefits of labour laws to the working class. As per these provisions, those employers under whom the employees are directly working are responsible for their PF registration and not the owner.

Hence in any company, if there are people who are hired under a contract, the owner of the company is not responsible for the PF registration as he has hired them on contract. They are the people working under a contractor, and hence the contractor for whom they work is responsible for their PF registration. As a part of labour law compliance India, this is mandatory to have with such a contractor, and the owner of the concerned company is nowhere responsible.

As per the EPF act, there are also certain conditions under which the owner or employer is not responsible for the PF dues or provision for PF for the employees who work on a contract. For having various benefits of labour laws, it is necessary for one to get registered under the EPF act whether he works in a company or on a contract. However, at the same time, one needs to know that in the same organization, he must have the required number of employees who earn wages from the company or the contractor as the case may be.

For those contractors who have more than 20 employees on the payroll and want to get them registered under the EPF Act, the labour law compliance services can be of immense help. One can hire the expert of contract labour laws to set the process straight forward and be compliant with legal provisions.

What is contractual Labour?

If termed in simple terms, contractual labour is one who works on specific days or hours and not a part of any organization directly. Such a person may be a part of a team of any labour contractor. There is no specific type of job mentioned in the contract labour laws also. Hence one can say that it implements to anyone who works for a certain amount of wages in any manual or labour work for any day or hours of a day. As per the labour law compliance services, one needs to have specific provisions for such employees only if they are under direct employment and not on contract as in many cases; the contractors also have people on contracts from other contractors.

As per the provisions of contract labour laws, those who are in direct and regular employment can be provided with the benefits of labour laws and not those who are casual workers. Hence it means that as per the EPF act as well as the contract labour laws, the beneficiary must be a regular employee for any specific tasks or any other which is specified by the concerned employer. To have the best labour law compliance, the companies or labour contractors need to provide all necessary information to the PF as well as the ESI department that can help the employees to have the benefits of labour laws.

What are the objectives of the contract Labour ACT 1970?

Being a welfare state in the modern era, the prime objective of the contract labour act 1970 is to safeguard the interest of the employees and help them get better facilities and life from the employer. It also aims to avoid exploitation of the employees under the name of employment and save their lives from the uncertainty of the future. Hence the benefits of labour laws are many if they are taken into account in their true sense. As per the objectives of the contract labour act, the safety of the financial health of the employees as well as physical health is also taken into consideration.

It also aims at proper employment practice in the society, and hence one needs to have registration or license for concerned service. In case of any noncompliance, there may be a cancellation of the registration or revocation of the license by the relevant authority. The contract labour act also fixes the responsibilities of the contractor to safeguard the interest of those who work under him as a part of the contract. Hence those contractors who have the best labour law compliance can enjoy the rights and healthful working environment while those who are not much caring to their employees may be stopped from working under this provision.

For the contractors, it is necessary to take the required responsibilities before going for work. The best labour law compliance can help them get contracts easily and work smoothly. For large organizations, such contractors are preferable as they are fully compliant with contract labour laws.

Benefits of labour laws

When there are many provisions and regulations made for the improvement in the conditions of laborers or employees, it is necessary to know the benefits of the labour laws also. Though one can predict that they are for the betterment of the condition of the employees, it is not the only benefit. There are many more benefits associated with these labour laws that can prove helpful to the employees, employers, and contractors as well as society as a whole. The law was enacted in the past, but with the change in time, there are various amendments done, which have made the law more relevant with time and changes in different industries as well as changing wages, skills and required facilities for better living.

Rights of employees and employers: With the help of EPF as well as contract labour laws, the state act as a regulatory and this can help employers and employees to have rightful work. These acts lay guideline, which describes the rights and responsibilities of both parties and have smooth work in society. On the part of the employers, it gives responsibilities to have a better work environment while on the part of employees; it ensures the right to have a smooth work culture and safety while on duty. Rights of leaves, wages, and the provident fund can help the employees to have better work standards and culture, and on the other end, it ensures to have rightful work to have with the concerned employers.

Prevention of child labour: Child labour is considered as a big menace and not in accordance with the welfare state. It is believed that one cannot force the child below a certain age to work as it has the right to education. Those who hire such children as workers are termed as illegal organizations, whether it is a company, an individual, or a contractor. To safeguard the future of the nation, it is necessary to keep the children safe and not to make them involved in any jobs or works for monetary benefits by anyone. These laws can be instrumental in assuring the rights of children.

Proper compensation of work and reasonable hours: Many times employees have to work as they cannot have any other source of income, and people or organizations which can offer work try to take undue advantage of such workers. To avoid such a situation and save workers from being exploited, these acts can work as a good instrument. As per the EPF act and Minimum wages act, there are standards set according to which one needs to pay a certain amount for specific types of jobs or work hours. Hence the workers get proper compensation for their efforts and work for the hours specified in the laws. It helps both the employers as well as employees as the employers can know how much it will cost if they hire certain people while employees can plan their earnings and act accordingly.

Prevention of discrimination: As a free state, there must be no discrimination while offering a job or work to anyone unless and until the exceptional situation forces. Hence these acts can make sure that people get equal work opportunities irrespective of caste, creed, sex, religion, or race. However, laws surely prevent children from obtaining employment in accordance with the principles of a welfare state. Other than that, they make sure that everyone, irrespective of education, skills, and area, gets the opportunities that can be said open for all and equal.

Prevention of exploitation: Many employers take undue advantage of their work, especially women and children. These laws are made to safeguard the interest of such workers and hence lay guidelines, which help them to have safe work and restrict such employers from illegal practices for personal interest. They also have provisions for a specific category of workers to have desired safety tools and regulations, which can help them in staying safe while on work.

To have a better work environment and social justice: EPF and contract labour act help to have a better work environment, whether it is a small organization or large company. Necessary provisions for the ease of work must be made as per these acts, which can help both parties. EPF also helps one to save for future and counter unexpected situations.

Hence from the viewpoint of better working conditions and welfare of society, both of these laws are very much important and instrumental towards the development of the state.

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If there is no proper leave management, it can be a big issue that can result in a loss for business or resentment among the employees. For modern companies, when several employees or on payroll and need to have proper maintenance of records for compliance in accordance with the law proper system for employee leave management is a must. To meet this requirement, modern technology can also be used as many software providers can offer software for the online leave management system.

In the absence of such a support system, leave management can prove as big trouble for the HR team. Though there is also leave management service provider in the field, which can help the company or organization, they also need to have data according to which they can create the record of leaves taken by an employee and balance left with him.

The leave management in case of extended leaves can be trickier as the employees may not have the balance, but yet due to his situation at home or medical condition, he may have to opt for the same. In such a situation, one needs to be vigil as if the concerned leaves are taken as regular leaves; the business may have to suffer from unwanted loss in terms of the pay to the concerned employee. In the large companies active in the different regions, this can be a grave concern as it may have several employees facing such conditions. For such companies only, an online leave management system is developed by the experts.

What is HR leave management?

In simple terms, the leave management can be termed as a system where the absence of the employee from work is detected using the time off system. In case of paid time off one can have the benefit of payment even if he has not worked or not present for the work but in case of non-availability of the same, he may have to forego the payment for the concerned time or days he has not worked or presented to work even if the work was offered by the employer. If the case of leave management outsourcing, the same has to be notified in the record to the concerned leave management service provider so that he can reflect the same rightly in the payroll, and the payment is made in accordance with the paid and unpaid leaves taken by the concerned employee.

A few legal considerations also need to be taken into account at this juncture. As a part of the employee leave management, one needs to follow the statutory provisions provided in the wages and ESI as well as other acts. As per the laws, there are a few leaves granted to employees every year. Usually, they are twelve leaves for twelve years, which one can go for without getting any money deducted. However, if there are more leaves taken by the employees, one needs to check whether the same fall in any category mentioned in the laws or just unpaid. In the case of categories such as religious leaves or medical leaves, the employee may be entitled to get certain or full payment for the same. If these leaves are also not eligible under any category and there is no balance of leaves at the end of an employee, the pay for the same can be deducted in accordance with the package or salary of the same.

If there are employees who are not medically unfit yet, they need some special attention the employer needs to make necessary arrangements for them to offer a better and healthy work environment so that they can perform their duty regularly and as required.

How do you manage employee leave?

From the business as well as employee viewpoints, the employee leave management holds great significance. Therefore to have an effective system is inevitable for every organization. However, with the availability of systems such as leave management outsourcing and software, this task has been much easy to handle for the HR team. While checking the data of the employee, his position, package, time for work, and time out need to be checked. As there are organizations with electronic attendance, this data can be readily available. This data is synchronized with the worksheet of the concerned month, and the gap will be taken as leaves. The data of such employees with gaps need to be checked with their leave records, and necessary action for the payment or deduction for concerned days is taken by the HR team. The deduction of amount or leaves are taken is shown in the salary slip of the concerned employee, and hence he can know how many leaves he has now or why his salary is deducted.

Leave Management Legal Considerations

The laws have made various provisions for different types of leaves that are granted to the employees and certain occasions when the employees can take the leaves. Every organization needs to have leave policy first, and the said must be communicated to the employees as well as mentioned on specific spots in the office premises. Even if the company has hired someone for leave management services, he must be aware of the leave policy of the company before acting on the provisions.

Under various laws, there are leaves granted, such as disability, medical, family obligations, and pregnancy, in which one can have full pay available even if he or she is not present at work. These leaves must be clearly informed to the employees, and the employee must also report his situation to the employer before going for the concerned leaves. However, the matters with every employee vary, and hence one needs to be flexible while handling these situations of different leaves. For every type of leave, there must be proper documents submitted to the employer by the employees. Hence employee leaves management in each of these situations is of paramount importance. Those who offer to leave management services also, these considerations are much necessary to keep in mind while extending the services to the clients.

Why leave management is important in an organization?

The employee leave management holds much significance for the large companies as there may be a considerable impact of the same not only in the accounts of the company but also on the interpersonal relations of employees as well as the company and staff. If there is a lack of proper leave management, it may happen that the leaves of specific employees may be deducted while a few may not have got any deduction. This can create an impression of nepotism, or others may act in a way that can trouble the business in one or other ways. Doubtlessly this loophole can also prove costly to the company as it may not be able to save that amount which it needs to pay to the employees who have not worked for it for some days.

Have the correct record: A perfect employee leave management system can help the company to maintain the record of every employee rightly.  It helps the company to count how many leaves one has spent, how many are left in the balance, and if the leave encashment policy is to be followed, it can compute how much it needs to pay for the leaves not used by the concerned employee. This record can be useful in following various provisions of different laws as well as offering retirement benefits to the employees. Hence it can create a loyal work culture among the employees, and they can perform their duties well, which can benefit the business as a whole.

Proper computation of taxes: Companies, as well as employees, need to pay various taxes to the government. In the absence of the employee leave management, they may end up paying more or less amount of taxes under multiple heads. For an effective financial profile of the employees as well as the companies, it is necessary to have accurate finance data, and in the absence of the right computation, it may provide a wrong picture of the profile of the employees. In many cases, the leave amount is exempted from the tax, but if they are not mentioned, one may have to pay the tax on this amount also and hence for the companies, it may be harmful to its credit and compliance.

Offer employee benefits: In many cases, the employees who have not used leaves can get some additional benefits. In the case of no leave management, this benefit cannot be available to genuine employees, and those who have taken many leaves may not get any discouragement to act well. Hence in such a situation, those who work with faith and loyalty may feel no value of their dedication to the work or company. In many other cases such as insurance, medical benefits, and legal suits, also the leave record can be of immense help. If an employee wants to go for some loan from the market, this record can help the lender know how reliable the person is and if he gets the benefits of government schemes or not.

Legal provision: As per the provision in various laws, also the companies need to have an accurate leave management system that can be presented to the authorities as and when they are asked. In the case of ESI act and minimum wage act compliance also, it is necessary for the companies to maintain a record of the leaves with other records of the employees. Hence to meet the legal considerations and provisions also, it is required to have a comprehensive leave management policy with every organization.

The support system: In this era, one can find software where it is easy to feed the necessary data and get the output easily. The software can also be synchronized with the payroll as well as attendance so that the required record of the leaves can be easily availed to the HR, and necessary actions as per the given data can be taken. Overall, one can say that not only to manage the record of the company effectively but also for compliance of legal provisions, the leave management system is much necessary and one cannot ignore or challenge its significance in this era now.

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The first thought that comes to our mind when we think about Accounting, is that it is a type of documentation that is primarily related to monetary transactions. Accounting services include communication of all financial and non-financial particulars about companies for both small businesses as well as large businesses. Accounting can be categorized into various parts such as financial and management accounting, tax auditing, external auditing, etc.

The fundamental & important thing in accounts is to analyze, summaries and to report the particulars about every economic transaction involved in the business.  Accounting services for small business owners is a major portion of every company, whether it is for small business owners or a large business owner. Accounting means an overall summarization of the economic transactions for a certain time period of a business.

Accounts of a particular company show the economic situation of a company, it has information about the cash flow and all the operations going on in the business.   An accountant usually has the responsibility of all the records and the documentation related to the Accounts Department. An Accounts outsourcing company works as a Bookkeeper for small businesses, which could also sometimes do all the documentation related works such as gathering data of the financial health of the company.

Regardless of the size small business or a large business, there should be an independent accounts department for the proper and smooth functioning of the business or the company that involves proper budget discussions. One needs to take firm decisions about the development of the company and so on. Bookkeeping and accounting services for small business owners involve a bookkeeper who can look after the general needs of accounting services.

What is the importance of Accounting?

The fundamental and the major importance of Accounting is that it documents every financial transaction within a company; it keeps records of the economic condition of the related company and many more. Accounting services for small business owners play a very critical role in organizing a business. Business management can be unable to make a decision without proper documentation of the accounting services. To come to the proper conclusion, the management usually relies on the statistical data and the information that the documentation and the accounts department provides.

The main purpose of this accounting is to record monetary transactions in a systematic order in the accounts book and to calculate the overall profit- loss and to find out the financial situation of the company. This work can be outsourced to an accounts outsourcing company, who can do the same job for your company-

Mainly there are three basic economic statements that are generated by the Accounting services for small business owners-

The usual payment statement provides a clear idea and information regarding the profit and loss of a company or a business.

The balance sheet could also provide a clear idea of the economic condition of the company in a set time period.

Cash flow is generally a connection between the payment statement and the balance sheet which analyses and shows the amount of cash that is generated over a given period of time.

It is extremely important that one keeps the financial info transparent and up to date to keep the business up and running. Here are some following reasons because of which maintaining clear accounts is critical for your business.

It evaluates the business performance

One’s financial and transaction info could show the output of the business operations and also the economic position of a small business or organization.  In other terms Accounting services for small business owners gives proper information about what is going on with your small business in terms of finance. Keeping clear and up to date records will help one to trace the expenses, debts and gross.

Ensures statutory compliance

There are certain accounting terms and conditions. And this varies from company to company and also among states.  Accounting services for small business owners provide accounting service systems that ensure statutory compliance for your business. The accounting service functions ensure certain compliance and liabilities such as GST income tax, and pension funds. There are a lot of accounting services in Pune that can help you follow the guidelines and compliance-related issues.

Helps to create a budget and future projections

Making wrong budgets and error-prone projections can either build up or destroy a business. The financial records usually play a primary role when it comes to doing business.  With the best accounting services in India, one can make a budget and future projection.

Accounting Terms All Business Owners Should Know

• • Accounts Receivable and Accounts Payable:  These are the first terminologies one needs to understand as a business owner, especially if one wants to have payment timely. Accounts receivable can be termed as the amount that it owes to others. Managing accounts receivable and collecting dues on time maintains a healthy cash flow. These can be properly maintained by bookkeeping and accounting services for small business owners.
  • Accounts payable is the exact opposite;  it’s the money a business owes, this can be done by an accounts outsourcing company
  • Assets:  Assets in any business assets are considered as one that is owned by the concerned business and one can transfer it to cash at any point of time. It can also use them as collateral if any such situation emerges. Accounting services for small business owners focus on this aspect also well so that in case of any requirement the same can be used. Assets are always shown on the balance sheet. For tax purposes, the cost of assets could depreciate over time. An accounts outsourcing company can assist the business to have the right assessment of the property to meet any emergency of cash or any other form of a loan.
  • Balance Sheet:  A balance sheet can provide an insight into a business’s financial health. It summarizes primary financial data like asset or liabilities, and also equity, at a given time. A balance sheet could be used to understand the total value of a company, its current or long-term debt, assets, and risk analysis. The statement of accounts or balance sheets can help one to know the original position of the business. The owners of any business can have great help from an Accounts outsourcing company if it needs to have proper analysis and interpretation of these statements.
  • Break-Even Point:  Accounting services for small business owners provide shows the break-even analysis of accounts, which can help one determine at what point one will reach a cash flow positive situation and make a profit.
  • Cash Flow: Cash flow is fundamentally the movement of cash from receivable accounts to payee accounts). There is a delicate balance, which can be disrupted by dues, expenses, lack of excess capital. With the help of the best accounting services in India, one can create a cash-flow monitoring system. To have better cash flow, the business needs to have proper development and forecast so that at the very right moment the availability of cash is there. It can also take the assistance of an Accounts outsourcing company to know the indicators that are alarming for typical situations and from various strategies as well as policies to overcome the concerned situation.
  • Cycle for cash conversion:  Understanding the cash conversion cycle is an essential part of managing cash flow. The cash conversion cycle is primarily defined as the time it takes for a business to sell inventory, collect dues and pay the bills. Ideally, this cycle should be extremely short so that the money isn’t tied up in inventory or accounts receivables. Accounting services for small business owners calculate the cash conversion cycle (CCC), which one should know to support a specific situation and maintain a cash reserve to support the business.
  • Cost of Goods Sold:  The Cost of goods sold or cost of sales is usually defined by a calculation of all the costs involved in manufacturing or selling a product. It’s an essential part of the business tax return and can reduce your taxable income. Understanding the COGS can also help you determine the pricing of products, profitability and help one ensure sustainable margins. It will also help one identify the product lines that may be killing one’s profitability. An accounts outsourcing company can analyze COGS is reported on your profit and loss statement.
  • Credit:  Accounting services in Pune can provide business owners with required information related to the credit line, to the personal and business credit score, Educating oneself about why credit matters to the business, the importance of healthy credit, and what the financing options are. One should not intermingle with your personal credit with your business credit.
  • Expenses:  Accounting services for small business owners show the expenses incurred in the daily running of the business – from office rent to marketing expenses, training to vehicle mileage.
  • Liabilities:  Liabilities are the legal or financial debts that a business or company has, such as loan dues cash credit debt, taxes owed, accounts payable, staff wage… These are all shown on the balance sheet. An accounts outsourcing company can provide a balance sheet after assessing the finances.
  • Profit:  Accounting services for small business owners let one assess the company’s cash flow, one might be quick to assume that your business is profitable. Accounting services in India could help a company become cash flow-positive; it means the cash inflows exceed the cash outflows.
  • Profit is similar: For a company to be profitable, it needs to have more money coming in than it does going out. When one sees that one has more receivables than one has payables, it can be easy to assume that a business is making a profit.  Without taking the help of accounting services in Pune it can be said that business cannot sustain in the short or long run.
  • Profit and Loss Statement:  Accounts outsourcing companies can generally give a profit and loss statement or income statement. This accounting term usually refers to a primary financial tool that provides an overview of how a business is performing over time. A bookkeeping and accounting services for small business owners could provide profit and loss statement which breaks down the revenue generated and expenses incurred. It helps to see how profitable their business is and how much cash is left over after the losses are accounted for to grow your business, pay off debt, or contribute to your salary as a business owner.
  • Accruals: Accruals are primarily adjustments for revenues that have been collected but have not yet been earned by the company.
  • Accrued Expense: Accrued expenses are expenses that are recorded but still not paid off.
  • General Ledger: It holds the total record of a company’s financial transactions.
  • Journal: Before a ledger is made all financial transactions are recorded in a Journal.
  • Trial Balance: It checks credit and debit amounts.
  • Capital: Capital is the total value of financial resources- cash or other assets, which a company owns.
  • Revenue: Revenue is the total amount of money generated from business or selling of services or goods.
  • Forecasting: It helps in to make a prediction by analyzing historical data to make future predictions related to budget and accounting.
  • Fiscal Year: It is the year with specific dates between which the statements display the situation of the business.
  • Equity: It is the shareholding pattern of a company and its owners.
  • Dividends: Dividends are paid to shareholders when a company makes a profit.
  • Burn Rate: It is the rate at which cash is burnt by a business during negative cash flow.
  • Accrual Accounting: The process of accounting where expenses and revenues are calculated in the total.

The post Top 25 Basic Accounting Terms All Business Owners Should Know appeared first on paysquare.

When we had to ask several of our team members to start working from home, in view of the Covid-19 lockdown, this was precisely what we went through ourselves.

Our IT teams had to support us in a big way to ensure that all our associates were supplied with desktops or laptops at their home premises and that they had the necessary connectivity needed to continue working on their client projects.

Kudos to our IT team for implementing our business continuity plan so well that all our teams are able to work in a virtually connected workplace, powered by systems, technology, and connectivity. Our teams are now able to ensure effective service delivery to our clients from remote locations, without any interruptions.

Special thanks to our IT teams across different work locations for leading this monumental effort to maintain business continuity while putting the health, safety, and welfare of our employees above all.

The IT teams have been working tirelessly for the last 1 week to prepare desktop, laptops and almost endless amounts of tech support for effective remote work. The online platforms have now become the virtual workplace for all of us and it is a true example of exemplary teamwork! A BIG THANK YOU!!

The post Enabling virtually connected workplaces amidst the COVID-19 lockdown appeared first on paysquare.

No, it’s not possible

Irrespective of the type or size of your business…people matter.

Businesses need people’s involvement. You can’t avoid them as they play a critical part in growing your business.

As a business owner, you need to pay all those people who are involved in your business.

How do you pay for them?

You will have to pay them through payroll. There is no other go, but what is payroll?

What is payroll and how it works?

Payroll is a method used by organizations for paying employee’s salary for each pay period. It is a financial record of compensation paid to an employee as salaries, wages, bonuses or deduction for a particular period of time.

The payroll process involves the calculation of employee salaries and tax deduction, administration of employee’s financial records and disbursement of salary. The salary and wage disbursement have various key components structured together in every payroll. These components are essential for the employers and employees both to have an accurate calculation and disbursement.

Framing the salary components of an employee is one of the tedious and the most challenging tasks in every payroll management system.  Therefore a payroll processing system is an important function for any business. And business owners need to ensure that whoever is handling payroll should be capable of handling the process and are knowledgeable about what rules, regulations, and other facets need to be considered. This will help to make the payroll tax efficient and compliant with government norms.

Payroll is one of the most important jobs which fall under HR professional. This is mostly overlooked but a small mistake in payroll hit the morale of the employees which ultimately affects business productivity. Therefore every company needs an organized payroll management system.

Payroll consists of salary calculations towards the work done by the employee, be it in the order of productivity, deductions, or benefits. Unfortunately, there is a huge gap with respect to how the salary is structured, what components should be included and not.

Every salary contains “taxable” and “tax-exempt” components, variable pay, constant pay, general and specific allowances, and some deductions.

Let’s see what the payroll components are

What are the major components of a Payroll?

These are the major components in the payroll management system in India

1. Gross Salary

The total amount paid to an employee before deductions, every month based on whether the employee is salaried or hourly. Gross salary may include commissions, bonuses, and other payment arrangements. This is calculated on a yearly basis and often referred to as CTC or cost to the company.

2. Deductions

Deductions are elements of the salary that are part of CTC but are deducted from the gross salary that employees receive. Some components that are part of deductions are shown below:

3. Provident Fund (PF)

This is calculated at 12% of Basic + Dearness Allowance (DA) + Special Allowance. The employer and employee both make an equal contribution of 12% each.

4. Professional Tax (PT)

 The professional tax is levied by Governments of certain states on salaried employees. The amount of professional tax varies from one state to another where they are applicable.

5. Employees State Insurance Corporation (ESIC)

This deduction is mandatory for employees whose gross salary is not more than Rs. 21000. Only applicable in companies where there are 20 or more employees within Rs. 21000 gross salary bracket. Employees contribute 1.75 % of the gross salary and the employer contributes 4.75% of the gross salary.

 6. Labour Welfare Fund

 This fund is a contribution made by salaried employees for the benefit of the labor class. The labor welfare fund is like a professional tax that varies from state to state where they are applicable and is relatively small. Employee and employer both contribute but the contribution of the employer is twice the employee. The payments are made every half-yearly in the months of June and December.

The post Payroll and it’s major components that bridge the gap of salary structure appeared first on paysquare.

It’s a tricky and challenging task.

Staying up to date with leave laws’, keeping track of who is out, when they are off, and how long they will be gone is extremely difficult to handle.

Can you avoid this?

No, because attracting and retaining employees is critical to a business’s success. This is only possible by executing the leave management system in a fair and accurate way.

How do you ensure consistent execution of staff leave management system?

You have only two options: Manage leaves by

• Inhouse leave management,

                      Or

• Leave management outsourcing.

Each leave management has its own advantages and disadvantages.

In-house, leave management is prone to error and time-consuming. But the best part is it allows an employer to have control over their workforce management. Whereas in outsourcing leave management, the third party will manage leaves, so leave will be out of sight and employers won’t have any control over their workforce.

With time cloud-based in-house leave management has been added. Innovations in leave management will bring new technology going further to simplify the process.

What are you planning for leave management? Want to manage leave requests In-house or Outsource it. Check the factors below.

Should You Insource Or Outsource?

This depends upon the organization whether they want to implement an upgraded leave management system in-house or they want to outsource the leave management. Many factors need to be considered before deciding about Insourcing Or Outsourcing.

1. Assess your organization culture

Does your organization have employee centric-culture? This means you allow your employees to share their views with the respective person before implementing any new system in the organization. Or You follow the hands-on approach.

2. What are the objectives of your organization?

Know your organization’s priority.

Do you want to implement the web-based leave management system?

Or

Want to manage leaves complying with legal laws as per government?

Or

Want to incorporate effective leave management policy?

Or

Want to keep up organization culture?

3. Assess your organization capability

Evaluate a few things inside your organization.

Are your staffs and administrators capable enough to managing leave?

Do you have dedicated leave management software in place?

Or

Are you planning to invest in one to support your staff?

4. Do the cost analysis for insourcing and outsourcing

Costing is the main factor before implementing any new system in the organization. So analyze the costing factor with insourcing and outsourcing leave management system.

In outsourcing, costing include an implementation fee and a charged employee/per month. This varies as per organization size, leave volume and many other factors. The insourced leave management system includes a onetime setup fee and then a yearly fee every year.

Keep in mind that the implementation of leave management software increases productivity and efficiency. Thus it reduces the staffing cost.

Bit confused! Let me give one example to clarify how it reduces staffing costs.

Due to automated leave management software. A single person can process more cases per case manager which reduces the workload. As a result of which additional staff can take on other tasks.

Thus insourcing is less expensive than outsourcing if you have more than 200 employees.

5. Find the perfect fit vendors

Research and find the vendors who can handle your leave management needs. Find one from the explored vendors that match as per your organization’s goals.

Check whether the vendor is supporting any other organizations of your industry?
Whether they have skilled staff persons to help your organization?
How quickly they can adapt and understand your organization’s needs?
Whether their technology integrates with your HR systems?
Are their current customers satisfied with their capability?

Review all the factors mentioned above set your leave management goals that work best for your organizational culture and then take a final decision.

Outsourcing leave management is rapidly growing.

Because outsourcing is a cost-effective and efficient way for employers to manage the challenges of compliance and leave administration.

Is it really beneficial to outsource leave management? Read the next section for it.

Benefits of leave management outsourcing

1. Reduce the administrative burden on HR departments

How Outsourcing helps:

• • • Manage leave related paperwork and meet required deadlines
    • Track and report leave
    • Ensure consistency of process and regulatory compliance
    • Communicate between employers and employees on leave

2. Ensure Legal compliance

How Outsourcing helps:

• • • Ensure that all the leave laws and regulations as per government are applied consistently, helping employers avoid costly penalties

3. Ensure standardization and consistency in applying the laws

How Outsourcing helps:

• • • Prevent inconsistencies throughout an organization
    • Do not discriminate any employees and treat everyone as same

4 Realize better coordination of employee leaves

How Outsourcing helps:

• • • Make it more convenient for employers to track the various leaves, any new leaves applied and change in the leave dates and expected return to work dates
    • Helps in identifying patterns and trends in employee absence and helps them understand the impact of these leaves on cost and productivity

5. Enhance return on investment

How Outsourcing helps:

• • • It helps in maintaining productivity.
    • Relieves HR professionals from the time-consuming activities of leave tracking so they can use their time in other important tasks.
    • It also suggests ways for a disabled employee to stay at work or return at work, allowing them to remain productive during this time as well.

6. Minimize discussions about sensitive health issues

7. Increase privacy by shielding employers from the employee details

8. Prevent access to confidential employee medical records.

Now we will quickly see how the staff leaves are managed in the system.

Procedures of staff leave management system

A leave approval process looks simple from outside but actually takes a lot of time if you have not set up for it.

Manual leave management system:

In manual leave management process, a manager receives the leave request, evaluate employers eligibility, check for the compliance as per the leave policies, ensure sufficient staffing for the day and then arrive on an approval decision without impacting employee satisfaction.

This is a very tedious process as it goes through multiple request channels, many spreadsheets are flown and manual intervention is also mixed in it. This process can be straight forward and less time-sensitive. If you implement an inbuilt online management system?

The major drawback of this system is it happens on paper. All papers have to be properly recorded. Nobody has any idea how many leaves are approved, how many are pending. Bla… Bla… Bla… But there is no way by which you will remember all the leaves. A situation may arise when the actual day of leave comes, an employee may not want avail an approved leave and it should be added back to his account.

“An online leave management system is an automated leave management application that automates every step of the employee leave management process which allows employees to apply, approve and reject and manage leave requests from any time, and from any place, any time and from any device”

Online leave management system:

In the online leave management system, an employee can request leave from their desk or from home if they are sick. This leave request then reflects the relevant superior for approval.

If the leave request is denied, a reason for the rejection must be entered in the leave management system and the applicant will get notified.

If the leave application requires the second level of approval, the leave management system will notify and request their approval before notifying the applicant. The leave management system also notifies other parties who are required to be notified but their approval is not required.

Thus online leave management system itself manages all the record which can be accessed from anywhere. You can view the dashboard and check the leave history.

Conclusion

It’s clear that leave and attendance management is a crucial task for HR managers a but it can’t be ignored.

Execute the leave management system accurately by selecting in housing or outsourcing leave management system. Consider the various factors mentioned above before making your final decision.

Leave management outsourcing is the best choice if an organization is big. It is cost-effective and relieves HR from the challenges of compliance and leave administration. However, you don’t have any control over your workforce.

So take a call judiciously based on your organization’s goals and needs.

The post Insights on Outsourced vs. In-House Leave and Attendance Management appeared first on paysquare.

Filing your tax return is just around the corner, and for the majority of us, we have no idea how to do the same. If you are looking for a proper guide to filing your ITR, this is just the right article for you. Here you shall get all the answers for tax-related queries and how to find possible solutions for the same. Here is a list of some of the questions for ITR that we all have in our minds. Dig deeper into the abyss, and you shall find the answers you want.

Do’s and don’ts one need to know related to income tax return

Income tax services in India can be pretty confusing at times. But make sure to understand that your ITR meticulously year after year creates your financial record which can help you in the long run. Be it a financial loan or something for personal use; your ITR works as a testimony in order to opt one. Let’s take a look at some of the dos and don’ts one need to keep in mind for a hassle-free ITR filing:

The do’s

• • One should be aware of the tax slab they fall under. While knowing your annual gross income, you can calculate your tax slab.
  • Make sure to choose the right ITR form, as several changes have been made by the Income Tax Department of India by this year.
  • Your taxable income, along with relevant details, should always be in disclosed and reported.
  • Keep track of all of your TDS records.

The don’ts

• • Never provide incorrect information for the relevant documents that are required to file your ITR. Not only it will cause a delay for your ITR to process, but you might also have to pay a hefty penalty for wrong information.
  • For all the investments that have been made in the financial year, make sure to mention the same while filing your ITR.
  • Your tax liability can be lowered up to a certain extent only by claiming the deduction.
  • Never overlook the late fine and penalty fees for late submission of your tax filings.

Filing ITR after a gap of two years

There are several instances where a person might miss filing their ITR in the past couple of years. For some, they might have been unemployed, or others who have never filed their ITR before. Whatever be the reason, there are several instances where a person might have a gap of one of two. Some individuals might even get a notice for the income tax department while others won’t.

But, truth to be told, there is certainly no need to panic under such circumstances. After all, the income tax department will never harass someone who is willing to pay their taxes. According to the recent CBDT circular, a taxpayer can complete their pending ITR V verification for the previous six years. So you can always make a fresh start this year, no matter if you have never filed your ITR or even missed out a couple of times.

10 documents your require while filing the ITR

While Filing ITR Returns, you need to keep track of some of the important documents in order to get rid of unnecessary hassles and penalties. Down below is a list of the ten documents that are must-have for filing ITR.

1. Form 16: For all the salaried persons, form 16 is one of the most important documents to keep track of. Basically, Form 16 is the TDS certificate that shall be issued to you by your employer.

2. Salary Slip: Salaried taxpayers are also required to provide general information regarding the allowance such as house rent and transport that are often taxable.

3. Form 16A/16B/16C: Let’s just not get into the technicalities of these forms. But it is important to keep track of the same for all the incomes that are generated apart from salary. These include selling of properties and so on.

4. Interest Certificates from Banks: All the interests that have been received from banks, post office and savings account are taxable.

5. Form 26AS: These are the consolidated statement of your annual tax. It includes all the relevant information regarding the taxes that have been deposited against your PAN.

6. Aadhaar Card: Always take into consideration that your Aadhaar card has the most crucial role to play with your ITR. As per the new rule, make sure to link your Aadhaar Card with your PAN card.

7. Capital Gain: Property sales and mutual funds are often considered as Capital gains against a person’s income. Make sure to keep track of the increment that you have gained for your capital.

8. Home Loan Statement: If you have taken any home loan from a bank or any other financial institute, make sure to collect the loan statement.

9. Tax-saving Investments: Some of the tax-saving investments include PPF, EPF and Fife Insurance Premiums.

10. Section 80D to 80U: Apart from the investment plans, there are certain aspects where you can claim a deduction for certain expenses. Keep track of the same for certain deductions from your ITR.

Bank accounts and ITR

With all the linking processes going around, you might wonder, whether you need to report all of your bank accounts or not? While it might seem like one will do the job, as everything is linked to one another, but that is certainly not the case. As of last year, it has been made mandatory by the government to list all of your bank accounts in the ITR form. That being said, you won’t need to list all the inactive accounts given for the time period they have been lying dormant.

Generally, for the majority of the case, an account can be considered inactive if it has not been used for 12 months. Now if there is any fixed deposit or dividends associated with the same account, it is always considered to be operational. Under such circumstances, it needs to be inoperative for the next two years to be called as inactive. So, without going into such complications, it is always advised to mention all of your bank accounts.

Hassle-free ways to manage your Income Tax Return

We all understand how income tax returns can be tedious at times. Here is a list of some of the ways one should take into consideration regarding your ITR return:

1) File your ITR on time

This is one of the most novice tips one can come up with. Yet the majority of us overlook the same. In order to avoid any penalty, taxpayers and HRs should keep in mind to file their ITR before the due date. This is especially advantageous to the people who have a severe business loss and cannot carry forward the same.

2) The clear understanding of Tax Sales and their Rates

It is very important to be accustomed to all the tax slabs and their interest rates so that you can properly evaluate your position. Make sure to keep track of the slab where you can get a rebate on your tax.

3) Disclosure of your Liabilities and Assets

This section is not for everyone, but for the people whose income exceeds more than 50 Lakhs, it is very important to disclose your liabilities and assets for full transparency. There is a separate schedule you can find in the ITR form.

4) Selecting the correct ITR form

Always select the correct ITR form while applying for tax returns. Without the correct form, the department cannot evaluate the right amount of tax that needs to be paid.

5) Cross-checking all the information

It is one of the most obvious points in order to get a hassle-free ITR filing. Make sure to cross-check, not once or twice but multiple times before submitting the ITR return.

Due Tax after Deducted TDS

There is no arguing over the fact that there are several instances where there is a due tax even after getting your TDS deducted. Even the banks nowadays have started to credit interests after deducing taxes. And apart from that, you don’t even have any extra source of income.

This is one of the biggest confusion among taxpayers, especially for the salaried. Now, there is a trick to understand over here. For the majority of the time, TDS deducted by the employer is at 10%. And the same goes for your bank. Now. If you are falling into a different tax slab, there is still some outstanding income tax that needs to be paid. That is what creates all the confusion. So, the next time you are about to file your ITR, make sure to know your tax slab under which you fall. This can give you a vivid idea of how much tax you shall be paid.

Common mistakes the HRs make while filing the ITR

The HR managers in any organization play one of the most important roles while managing the payrolls of the employees. That being said, here is a list of some of the common mistakes that HR makes while filing ITR:

• • With the new 2020 union budget, HR needs to keep track of the new tax slab as well as the old ones.
  • While this might be of convenience for the company’s employee, it is certainly one of the mistakes HR shall make regarding the choice of the tax slab.
  • Apart from the taxation slab, HR needs to keep a track of the tax exemptions that the employees can avail.
  • Without the proper knowledge of LTA and HRA, HR ends up making more payments to the employees.

Understanding successful ITR filing

As we have advised before in the article. It is very important to submit your ITR before the due date. This is mostly because, within the last few days, the servers are always overloaded. So, make sure that you get an acknowledge number from the Tax Department. This acknowledge number ensures that you have successfully submitted your income tax return. That being said, if you don’t receive the same, it is time to cross-check and refile.

What to do after an Erroneous Return?

As we have discussed earlier, if you have created an error during the time of filing, you are always allowed to revisit and make certain changes to it. This can help with making any further errors. Under section 139 (5), you can always get your files revised with the correct particulars. So, no need to worry about the same. No matter the error, they can still be rectified if found at the right time.

To sum it up

While drawing a conclusion to the above-discussed article, all the topics cover some of the most important aspects one needs to know while filing their income tax returns. Once you get everything right, it is guaranteed that you will experience a seamless tax filing like never before.

The post Income Tax Return (ITR): Guide to filing your ITR appeared first on paysquare.

Basic functionality

First of all, you should be clear about the basic capabilities of HR and payroll solution. It will help in establishing your expectations from the service providers. It will also determine how different departments in your organization are going to take advantage of the services. Here are some of the basic functionalities:

• Human resources

The outsourcing agency will automate the daily tasks. They will use the available HR data to identify the latest trends that will help in enabling the strategic decision-making process. With the help of HR and payroll solution, you can reduce the workload of your organization’s administration that will help in increasing productivity.

• Payroll

No matter how highly qualified your account department is, there are always chances of manual errors while completing the payroll process. Even if you are using the latest technology, there will be chances of non-compliance with the latest regulations. With the help of HR and payroll solution India, the efficiency of the core payroll processes will improve. It will empower the employees with flexibility and provide them access to the information related to their accounts easily and quickly.

• Time and attendance

Outsourcing HR and Payroll will help in eliminating manual tracking and data entry. It will ensure accuracy and compliance with the regulations. It will help in reducing the pressure on the in-house departments by compiling data of the diverse workforce in one place.

• Collaboration and communication

With the help of HR and payroll solution, you will be able to provide your employees with a centralized location where they can connect and collaborate from anywhere. It will help in improving the feedback process, peer recognition and flow of company information. Such collaborations help a lot in improving productivity and decrease workplace stress.

• Benefits administration

One of the major issues that the employees face in organizations is that they are not happy with the benefits administration. It is a common complaint that the HR and Payroll departments receive that the employees did not receive their benefits on time. With the help of a payroll and HR service provider, you can eliminate the chances of such complaints. These companies are well versed with the latest technologies to identify and recognize available benefits for each employee and provide them incentives etc. on time.

• Talent management

Outsourcing HR can help with talent management. It helps in enhancing the employee experience and provider flexible learning options. Such a platform helps in improving the communication between the trainer and the trainee by enabling ongoing performance feedback.

• Recruitment and on-boarding

One of the major issues with the in-house HR department is the lack of a standardized recruitment process. It sometimes creates a problem in managing the employee data that may lead to an inadequate work environment. Outsourcing HR will help in standardizing the recruitment process by enhancing the candidate and new hire experience.

• Data and insights

Outsourcing HR and Payroll services help in providing flexible and comprehensive access to real-time as well as historical data. It enables you to analyze and monitor the key metrics, identify trends and offer insights to the strategic process of decision-making.

Checklist to consider before you finalize the right HR and Payroll outsourcing solution

• Every organization has unique needs:

First of all, you need to understand that every organization has unique needs. Even if a service provider has long experience in providing solutions to your sector, there is a possibility that you may need to add or remove some services from the contract. Choosing the right solution depends largely on the uniqueness of your organization. The goals that you have in mind will determine the options you may need. The service provider should also have an option to scale to meet your goals and requirements in the future.

•  Size of the organization:

When you are shopping for HR and Payroll solutions in the market, consider the size of your organization. While checking their past experience sees if they are capable of handling solutions for the company of your size. If your organization experiences seasonal growth, the service provider should be able to accommodate the request. The number of locations at which your organization operates will also make a huge difference in the decision-making process. Some service providers, despite handling large clients, are not well versed with the technology to provide services on multiple locations. Also, confirm with the HR and Payroll Services are scalable in the future or not.

• Categories and departments in your organization:

There is a number of departments and categories of employees in every organization. The choice of the service provider will depend on if you hire only permanent employees or you consult and hire freelancers as well. If you have full-time and part-time employees, the service provider should be able to handle the payroll and benefits accordingly.

• Compliance with the regulation:

The service provider should be well informed about the required compliance with the federal, state, union and management rules and regulations associated with your organization. They should know the requirements they need to meet to stay on top of compliance in multiple locations. If your industry has some specific regulations, the HR and payroll outsourcing solution should be aware of it.

•  Option to manage workers in field and office:

If your workforce is present in the field as well as the office, the service provider should be able to distinguish between them and manage payroll and benefits accordingly.

• Budget:

Your budget will play an important role in deciding if you can afford the selected service provider or not. Your priorities will determine the cost that you have to pay to the service provider based on the contract. You should also get the information about the additional charges, taxes, etc. that you have to pay for using their services. Please get the information about the additional cost for the HR and Payroll Services that you may need to pay in case you want to scale up your business. You should be aware of the cost reduction in case you decide to scale down your business.

• Industry-specific requirements:

A lot of organizations have industry-specific requirements. The federal and state regulations change for different industries from time to time. The HR and payroll solution for large companies that you are choosing should be aware of the industry-specific requirements and should be able to fulfill these requirements in time. You should be aware of how these service providers operate and integrate their technology into their clients’ organizations. The service provider should be able to provide solutions with an open architecture that allows you to take advantage of its platform without much hassle or time-consuming management processes.

• Mobile capabilities:

The service provider should be able to provide mobile-based solutions to your organization. This may include a platform where employees can check their account information on the self-help portal.

• Usability:

The service provider you are planning to finalize should have a high user adoption rate. The solutions they are going to provide should be easy to use, and the customer care department of the service provider should have the manpower to accommodate questions coming from your employees.

• Engagement:

The solutions you are getting from the HR and Payroll outsourcing solution should provide your employees with a platform that will enable them to collaborate and communicate with each other and with the administration. It should be able to track the training processes and performances of the employees, along with recognizing the individuals or groups for their achievements. All the information should be available on the employee records.

• Regulatory compliance:

You should look for a service provider that can help your organization to stay in compliance with the regulations on the federal and state level. They should also have a legal department that can help you in case of any dispute.

• Innovation:

Every now and then there are new innovations that enter the market in the HR and Payroll sector. The service provider should be aware of the advancements. They should be able to provide you with the latest and secure technology. A service provider that continues to evolve with the time and technology to ensure the clients also get the regular updates will be the best choice.

Evaluate the Payroll service provider

• • Please note that not all HR and Payroll Services are the same. You have to check different aspects while choosing the right one for your organization.
  • First of all, check if they have ample experience to work with the companies in your industry. They should have experience in handling clients in your industry.
  • Make sure to choose the service provider that understands the people-focused goals of your organization. They should have a positive work culture in their company.
  • The service provider should have the capability to adapt and change with the requirements coming from your side. It does not matter you decide to scale up or scale down your organization; the service provider should be able to manage it with ease.
  • The HR and payroll solution for medium companies should be able to implement the solutions while keeping a client-focused approach in mind. They should be able to configure solutions based on the organization’s structure and work environment.
  • The HR and Payroll Services should include a dedicated customer support department in the company. They should be able to offer a quick response rate. The history of resolving clients’ issues should high. Access to the customer support department should be easy, and there should be multiple channels to do so. Some queries only need a quick chat while some may require a visit by someone from the service provider’s office. In any case, the queries should be solved at the earliest.

The right selection can prove to be helpful for sure

Choosing the right HR and payroll solution for small business can also bring a major change in your organization. The size of your organization does not reduce the importance of HR and Payroll outsourcing solutions. It will not only help you in reducing the burden on the administration of your company, but it will also help in standardizing the processes in HR and Payroll departments.

Outsourcing helps in quick and easy auditing of the processes that help in eliminating the loopholes. It also helps in timely payments to both permanent and temporary workforce. The HR and Payroll service provider will take care of the compliances on the federal and state level as well. This guide will help you in choosing the right service provider. If you have any further questions, please contact us.

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