“Which is the thing that you find the most cumbersome to do in your job?”
Ask this question to a responsible person working in the Human Resource department of any large, medium or small company. Chances are that you will get an answer that might sound like a universal phenomenon to you!
Of all things, “Payroll Processing” is the job that most HR people believe to be the most cumbersome, yet one of the most essential of all things that they do!
A non-HR person might wonder why? Because for an outsider, payroll processing is all about releasing salaries and complying to the statutory compliances every month.
What is payroll processing?
Payroll processing is much bigger and far more critical than simply paying wages & salaries and printing salary slips. Some of the critical things that HR teams do include calculating the correct value of salary and wages, computing the statutory deductions, depositing them with the respective statutory bodies, complying with the various labour welfare rules and laws, and then finally issuing the salary slips for every employee in the organisation. This is over and above maintaining the employee-wise record for future reference and regulatory compliance. This is not a one-time activity. This needs to be repeated every month, month after month!
Unfortunately, the nature of the job is so crucial that one error in any activity has the potential of becoming a huge controversy which might even attract legal as well as monetary penalties! All this leaves the HR team with very little time and energy to focus on their core job – hiring the right talent and retaining them!
However, with the rise of Payroll process outsourcing, things have become much easier for HR teams as they could now outsource their non-core payroll processing jobs to specialists and focus their energies on hiring and retaining their resources.
How does payroll processing help?
The key advantage that payroll process outsourcing companies bring to the table is that they have the necessary tools, technologies and expertise to manage the complexities of payroll irrespective of the size of the company.
They even have teams that are trained specifically to manage these activities and also make sure that these teams are aware of the latest developments & changes in the relevant laws, rules and regulations.
This ability to manage payroll processing on a large scale means that payroll outsourcing experts help in minimising or even eliminating the various errors in the process. These experts help in bringing efficiencies in things like:
- Preventing delayed salary disbursement
Salary disbursement is a time-consuming, laborious and error-prone activity. However, with a scientific, systematic and strategic outlook, this same activity is turned into a smooth flow of events by payroll outsourcing experts. These experts bring technologies and processes that aim to eliminate any inefficiencies in the system. Timely salary disbursement helps to enhance employee morale.
- Eliminating or minimising payroll errors
With an increase in the volume of payroll data being handled, the chances of errors in processing the same also go up substantially. If such errors are not eliminated or atleast not spotted in time, then they have the potential of growing into a very big issue. Due to its ability to manage large-scale data, such payroll outsourcing experts have the tools, knowledge and experience which help them to prevent such errors. Error-free payroll processing means lesser issues and happier employees.
- Maintaining accurate employee information
Data sanctity is crucial in payroll processing. Errors in data may lead to wrong payments to one or many employees. With the help of accurate data collection mechanisms, payroll process outsourcing experts minimise the occurrence of any such events.
- Creating a sync between departments and even over geographies.
As the scale of a business increases, so does the number of employees working in various departments and even across geographies. It is extremely difficult to create a perfect sync between such large-scale operations without having a robust technological infrastructure. Payroll outsourcing experts have this infrastructure in place and even have trained teams to manage it flawlessly. This ensures that irrespective of the location of the employee, his/her salary , salary slips and other relevant monthly reports which are crucial for employees reaches them on time and without any error.
- Accurate calculation and deductions of tax
Incorrect calculations or deductions in employee salaries not just increase the compliance burden on HR teams, but may even result in financial penalties from the relevant statutory authorities. With a robust technology infrastructure and accurate data collection tools, payroll outsourcing experts can help avoid any errors in such tax calculations and deductions. These result in the correct salary being disbursed to employees and also correct taxes being deposited with the relevant government authorities.
What are the indirect benefits of payroll outsourcing?
While streamlined and error-free salary disbursement is a direct benefit that organisations can experience, there are many indirect benefits of payroll outsourcing.
- Additional time and energy become available to better focus on business growth and core jobs
- Substantial reduction in overhead cost.
- Better compliance with the applicable rules and regulations.
- Substantial savings in time, resources and effort
- Improved employee morale resulting in enhanced productivity and efficiency.
Many leading organisations in the country have partnered with payroll process outsourcing experts like Paysquare. Over the years, Paysquare has developed expertise in managing payroll process outsourcing for many small, mid & large-sized businesses and that too with multi-location operations.
Paysquare uses some of the most advanced tools & technologies, and employs a team of highly skilled professionals & multi-disciplinary experts to manage the different aspects of payroll processing.
With Paysquare on their side, these organisations are always on the right side of the law and also score high on employee satisfaction. Where does your organisation stand?