Disbursing salaries on time is the least companies ought to
do to keep their employees happy and satisfied. Consequently, they need to
manage their payroll process in a timely and systematic way. Payroll
calculation can be a complex task for both small businesses and large
enterprises. Payroll involves so many different things and tedious compliances
that your company needs to have a dedicated team to handle the same. However,
hiring additional people puts an additional burden on the company. That is the reason
companies of all sizes opt for payroll services these days.
If you are someone who has been looking for solutions for
your payroll but is not sure what are the things and legalities to look for
before getting started, keep reading as we will delve deep and touch every
aspect of payroll services in detail.
For starters, payroll services are essentially payroll outsourcing services, where the service provider handles everything from
payroll calculations and fund deductions before depositing salaries into every
employee's account and filing any further applicable taxes on behalf of the
client. This happens precisely every month like clockwork. This not only
delights the employees but also takes off the burden on the HR department of
Why opt for payroll services?
Payroll management can be a complex process, especially for
small businesses, as there are many legal requirements that must be met while
generating employee payroll. In addition, if a company does not comply with
legal requirements, it may be subject to heavy penalties by the relevant
authorities. As such, availing of payroll outsourcing services is the best option for businesses as the entire onus
of legal compliances gets shifted to the service provider while the business
can focus on more important tasks.
Factors to consider before outsourcing payroll
If you plan to outsource your payroll to a service
provider, there are a few important things to consider. One of the things that
you should look at is the array of services provided by your vendor. See
whether it can offer a bouquet of HR services, including contract staffing services, as you might need more services in the
To keep the payroll process running smoothly, you should
consider the following:
1. Competence of the vendor
Every organization is different and so is the mix of
employees in the businesses. Many companies have a mix of employees, including
permanent employees, contract employees and seasonal employees. Additionally,
some organizations continue to on board and fire employees regularly as per
their needs. Then different states have different laws. This could affect
companies having units in multiple states. Make sure your payroll provider has
the required experience and can handle such complex nature of your
2. Data safety
Payroll data is a highly sensitive piece of information for
a company that needs to be well protected. For this, you need robust payroll
management software that can protect sensitive business information and
employees' confidential details, including payroll information. Therefore, you
should check the payroll management system used by your payroll service
provider before outsourcing sensitive payroll information.
3. High accuracy level
The payroll process is one of the most important functions
of an organization that needs to be infallible. Accuracy is the key, one small
mistake can seriously damage the reputation of your company. Businesses simply
cannot afford to have adverse consequences from payroll errors. Therefore, you
should check the veracity of the payroll service companies. Also, check online
reviews of outsourced payroll companies or even reach out to former customers
for their input.
There are times when you need to quickly change a few
salary components or other employee details before the salary cycle. Since an
organization always face such exigencies, your vendor needs to be flexible
enough to accommodate your short notice requirements. You should discuss this
clause before entering into a payroll outsourcing agreement.
5. Right pricing
Price is one important factor when outsourcing payroll.
Because in the end, you want to cut overhead. You just want to reduce the human
capital, software, equipment, consumables and other costs that arise from your
payroll. So, while outsourcing payroll services can cut a lot of business
costs, it's important to keep in mind that getting the best payroll services
comes at a price. You should not hire an inexperienced team to manage payroll
as that will ultimately cost you more!
Get the best payroll outsourcing services
Now you know the points you need to consider, including
legalities, when looking to outsource payroll services. When it comes to your
own business, you just cannot afford to falter. You should look for the best
people in the business, like Weavings, which also happens to be one of
the best contract staffing services in India.
Weavings is known to lend immaculate
support to its clients and work closely, not just as a vendor but as a success
partner! Get in touch with our client servicing team and they will be happy to
offer you the best advice on payroll services.