We live in an era where time is money and everything is changing at a blink of an eye. The world has become nothing less than a corporate jungle where the competition gets tough every minute.
In such times, growing organizations need a support system to fall back on. More like a seamless system that can handle certain important aspects of an organization efficiently so that the company can focus on revenue generation.
One such important aspect is employee payroll management. Employees being one of the most important parts of an organization, need to be managed efficiently. Especially the overall cost to company and other important components and benefits.
Though this is usually handled by the in-house HR departments in many companies, several successful companies are now looking for a hassle-free solution that is accurate, fully baked, and secure. To achieve this, they are also willing to go an extra mile by outsourcing the payroll processing services.
Payroll Process Outsourcing
Outsourcing payrolls has been a trend and an effective solution for companies in India and abroad for more than 20 years. 47% the of US and Canadian companies were already outsourcing payrolls by 2014. At this point of time, 73% of successful companies in the US are more likely to outsource payroll.
A well-organized payroll processing service has become a requisite for every evolving organization. An efficient payroll processing service can make every organization’s life much simpler.
To achieve this, several businesses are now hiring external firms that specialize in payroll functions. This basically involves companies getting an external firm onboard to handle all the human resource functions of the organization that includes various aspects such as hiring of new employees, their remuneration, taxation, and more.
Outsourcing your payrolls is a process that involves various factors. These specialized organizations usually start off by gathering your employees' critical information such as personal details, date of hiring, job title, pay rate, and more.
Subsequently, they procure the time-card data, calculate the pay that's due to each employee, and then deposit that pay into the respective bank accounts or issue a payroll check.
Payroll management is beyond just about ensuring everyone gets the salary on time. The companies have to deal with several other aspects such as government taxes, timely filing of documents, monthly payroll processing, compliance management - PF/ P.TAX. / ESIS/ Taxation returns filing, Form 16 generation, Investment proof checking and auditing, Full & Final settlement, and more.
There are leading companies that outsource payroll in India and other parts of the world, take the load off your shoulders, and take full responsibility for payroll management.
Outsourcing payrolls mainly helps in making an optimal use of your time and resources (monetary and non-monetary), streamline payroll, optimize productivity, and also improve administration.
It eliminates the need for having a well-trained staff that takes up time and resources for training along with other investments in various other technologies.
Apart from that, hiring a specialist can save you the effort of purchasing and retaining suitable software packages, and helps you stay compliant with the updated HMRC (HM Revenue and Customs) PAYE (Pay as You Earn) legislation.
A good payroll processing company will maintain full compliance without the organization having to deal with the payroll issues.
You get access to enhanced data security that includes back-ups and other redundancy mechanisms.
Cost of Outsourcing Your Payroll
The overall costs of outsourcing your payroll depends on several factors.
Few of them include the size of your organization, frequency of payroll, volume, tax requirements, and the scope involved. Majorly, the overall number of employees in an organization can give an accurate estimation of the cost.
However, most payroll businesses offer a basic package with monthly or per paycheck charges. The fee can range between $20 and $200 per month. Speaking of packages, a basic package usually includes paycheck processing, direct deposit, and standard tax filing.
The costs for outsourcing your payroll in India could range from as low as 5,000 INR per month for a small-sized company. It’s also important to consider the additional costs, if any. The overall cost-effectiveness is determined by the complexity of an organization’s payroll requirements.
Coming to a conclusion, payroll processing can be a significant cost to an organization that takes up a massive chunk of your overall budget. Hence, it is essential to choose and work out a systematized arrangement that is most appropriate for you that will ensure smooth operation and execution of one of the most integral facets of your organization.
So, outsource your payroll to a thriving business like PaySquare that is committed in providing great service that you expect out of them. After all, out of all your resources, employees are the only resource that you can control and access that your competitors cannot.
They are an asset you have that can actually be a sustainable competitive advantage. So, keep your employees happy and your business shall flourish.