Payroll processing is an integral part of every business irrespective of size or industry. There are various stages of a business and while at the early stage with a few employees it might make sense to manage with an in-house payroll processing department, but when the business expands you would need professional help either in the form of an accounting firm or a payroll management firm so that you can concentrate on the challenges of a growing business.
What Does In-house Payroll Mean?
Every company has a statutory obligation to pay its employees salary or wages according to their grade and scale of pay, department and so on. They also need to ensure that contribution to the various superannuation schemes mandated by the government like the Employee Provident Fund, Gratuity, Group Insurance and so on are made within the given deadlines.
The taxes to be paid with respect to each staff member is also the responsibility of the company. When the company has a separate department with its own staff handling all the above responsibilities, it is known as in-house payroll.
What Are the Different Payroll Systems?
In order to succeed in business, the most important resource for you is your staff. The best way to motivate your staff to perform at their optimal level is to ensure that their salaries and other monetary benefits are paid on time.
This can only be possible if you have your own efficient payroll processing system in place or have an external agency take the responsibility of Payroll Processing.
There are a lot of statutory obligations that need to be adhered to apart from the payment of staff salaries on time such as the Employee Provident Fund, benefits, insurance and so on.
Here are the different types of payroll systems which will help you understand the option that will suit you the best.
# In-House Payroll
An in-house payroll system would ideally be suited for a company with few employees. Managing data for a small number of employees makes payroll processing easier. You could hire an individual with a fair knowledge of taxation and payroll processing to maintain the records.
# Payroll by Professionals
These are payroll processing systems maintained by bookkeepers and certified public accountants (CPA). You could also hire a professional accounting firm on a contractual basis. However, you will have to handle the payment transactions, bank deposits and statutory deductions.
# Outsourced Payroll Processing
Another way to maintain your payroll records properly would be through outsourced payroll processing through payroll solutions companies like PaySquare who have over 17 years of rich experience in this domain.
# Online Software Payroll Processing
There are some online portals where you can manage your payroll processing by merely entering the required data. You will be able to generate the statutory records required in a simple way.
There are a lot of considerations to be kept in mind when choosing the mode of processing your payroll. If you have a business where there are sudden surges in demand, there will be an urgent requirement for skilled staff for a short-term basis.
This additional manpower will also require payroll processing. In such cases, it is advisable to hire a professional payroll outsourcing and payroll management company.
What Are Some Payroll Systems?
According to the responsibility of payroll processing, there are two types of payroll systems namely in-house payroll system or outsourced payroll processing.
While business with a small number of staff can manage with in-house payroll, companies which require additional staff to manage large contracts can opt for payroll management firms like PaySquare which have the necessary expertise and technology to manage payroll processing on your behalf.
Should I Outsource Payroll Processing or Use In-House Payroll? - Factors to Consider
There are some important factors to be considered before deciding to outsource payroll processing or getting it done in-house. They are:
- Costs Involved
You need to do a cost-benefit analysis to see if in-house payroll processing or outsourced payroll processing is more profitable, and if it makes sense for you to outsource payroll management, then you could consider PaySquare which has a team of professional accountants.
It is important that the payment of your staff's salaries are done accurately in line with the current statutory regulations in place. You can outsource it to a payroll management company like Paysquare. With high accuracy, compliance with existing legislation as well as accountability, Paysquare ensures that you have a motivated staff.
Absenteeism by in-house payroll staff can cause delays in staff payments. As the payroll staff are on the rolls of Paysquare, payment of salaries will always be on time.
With a team of qualified chartered accountants, payroll management companies like Paysquare can handle the payroll processing of temporary staff needed during major projects with ease.
- Professional knowledge
There are numerous legislative changes taking places in regulations relating to payroll management. Payroll management companies are updated regarding the latest legislation as well as its implementation so that you are not penalized for violating any regulation.
You get defined deliverables from payroll solutions providers regarding the services you are paying for. If you are dissatisfied with the quality of a payroll service provider, you can switch to another one. However, it might be difficult to replace an inefficient employee.
Employing the latest technology with regard to online security at Paysquare, there is less likelihood of misuse of sensitive payroll data as there are tighter controls.
Payroll management companies allow you to focus on the core areas of your business so that you can expand your business and take up bigger projects. This will lead to higher profitability.
Outsource Your Payroll and Realize Your Potential!
One of the major reasons for not being able to seize profitable projects or meet seasonal demand for products and services is the management of the payroll of the temporary staff needed to complete the projects or meet the seasonal demand.
Here is where reliable payroll solutions providers like PaySquare come to your rescue. They provide end-to-end services from issuing the appointment letter to providing the relieving letter, letting you focus on growing your business.