Payroll processing seems pretty straightforward at first glance. The employees' pay is known beforehand. All you need to do is disburse the same to their accounts. Simple, right? Absolutely not.
You need to calculate taxes and make the necessary deductions from the pay, deposit money towards the retirement fund, make payments towards insurance premiums etc. There are so many intricacies in calculating the payroll that missing a date or a deadline can lead to heavy fines.
Payroll services can make this process easier for your organisation. But first, it is important to understand what goes into payroll processing.
What is Payroll Processing?
Payroll processing encompasses everything from determining the payroll policy to generating reports.
The whole process can be divided into three parts namely, pre-payroll processes, payroll calculation, and post-payroll processes.
1. Pre-payroll processes
The first aspect to consider here is the company policies regarding the pay, leave, attendance, etc.
These policies will usually already be in place and may only require some minor updates from time to time. The next step is collecting all the relevant information and verifying it.
2. Payroll calculation
This is where all major calculations with regards to the payroll take place.
You need to consider the taxes, any payments towards retirement or provident funds, deductions for leaves taken, reimbursements for travels and any other expenses or deductions to determine the final monthly pay of each employee.
3. Post-payroll processes
After the calculations are done, you need to ensure that you have complied with all rules and regulations. After this, you can disburse the money to employees via bank transfer or cheques. The final step is preparing reports for the higher management so that they can analyse the monthly expenditure.
Why Choose Payroll Services?
Whether you are a start-up or an established company, payroll is an essential part of your organisation. Having a payroll department in-house might seem like a better idea, but it is not so.
When you outsource your payroll to another company that specialises in payroll services, you can expect a level of expertise that you cannot find in an in-house team.
There will also be better compliance with rules and regulations. And it is actually cheaper to hire a company to perform the payroll services for you. You are relieved of the training and hiring costs and any fines that usually arise from non-compliance.
It also frees up your resources so that you can redirect them towards more pressing aspects of the business.
What Does Payroll Processing Software Do?
Payroll processing software can help you standardise, streamline, and automate payroll processing. It gives you and your employees access to any information regarding payroll at the click of a button.
Not only does it perform the payroll processing, it also generates custom reports that make it easier for you to analyse the salary structure and use past data to predict future cash flow requirements.
But managing the software will need specific resources and increase your operational efforts for a dedicated team.
While considering to outsource your payroll management, you can consider the ease of using payroll process software as one of the benchmarks to select the best service provider.
Hire a Payroll Service Today
Payroll processing is a complex procedure that requires considerable effort and attention to detail. Hiring a payroll service in India for your company will only benefit you in the long run and help your business become a success.