Searching for a helping hand to handover the administrative and compliance-related functions of your company’s payroll, partially or completely, is what payroll outsourcing signifies. But why do we need to outsource and not figure it out by ourselves? Why waste money? If you have such questions in your mind then continue reading further.
Yes, of course, you can have your own in-house payroll team who can manage all your payroll procedures. So, to begin with, you will have to hire professionals and accordingly conduct training and development programs in that genre, as your payroll processes will need to have compliance with the statutory norms applicable to a company of your type.
Now, by the term statutory norms, I am implying to the legal framework a company needs to religiously adhere to, in order to escape from the heavy fines and penalties levied to anyone who goes off the track. The laws that you need to follow are regarding minimum and maximum work hours, payment of wages, amount of remuneration, classification of labour, retirement and other benefits, bonus payable, maternity leave and many more, also, the tax-filings and deductions.
The laws pretty often keep shifting and which is why staying watchful to such changes will keep your company away from any harm.
Now, comes the workspace, where you will need to place your in-house payroll team to operate from. So, you would want to rent a bigger office or maybe even buy a new property where you can squeeze in your new hires. But, remember, this includes the cost. You are spending on the space, spending on a good number of systems, paying huge electricity bills and the miscellaneous expenses keep adding up.
Since you are running your payroll processing in-house, you will need to invest in a superior quality host and a protocol offering authentic and bitwise encryption to make sure your pieces of information are safe and secure and not one without authority can access it. Loss of your valuable data can lead to grave repercussions and so you cannot take it for granted.
Let’s talk about technology. When disbursing pay to your employees, it’s mandatory that you also provide them the payslips explaining the exact gross salary drawn out of additions and deductions that are applicable to each employee individually. Offering them an easy-to-use website or an app or both at the same time, can be very handy and save you a lot of time and energy from solving the endless queries of your employees, which may almost gobble up most of your precious time.
So, whether it is a leave applying or approval issue, attendance marking mechanism, comprehensive salary break-up, easily downloadable pay-slips, effortlessly accessible HR records, acquiring knowledge about the available and eligible financial, medical or other benefits, gathering information regarding the organization and its hierarchy, etc. an employee can have grasped to all these databases without a hitch.
Even to you, it’s a go-to option, as it helps you in maintaining records of your employees from the point of onboarding until the point of off-boarding and tracking of all financial transactions, generating reports, and more, you can actually have an eagle-eye view on what exactly is going around in your company.
Therefore, these were the highlighted points that you need to keep an eye on when you think of managing a payroll process in-house. Also, when done manually errors might keep popping up along the process, and eventually, a single miscalculation might leave you and your business in lurches. Further analyzing the amount of time, money, and effort that you did spend on managing an in-house payroll procedure is massive in comparison to what you would have spent when outsourcing your payroll.
Payroll Outsourcing today has reached new heights with the adoption of state-of-the-art technologies, which can help you tackle any kind of payroll issues head-on and at an affordable cost. Mentioning a few of the benefits of payroll outsourcing are as follows:
- Payroll system integrated with Artificial Intelligence(AI) which
-Cuts down on the extraneous time.
-Reduces human intervention and thus nullifies the chances of human error.
-Enriches employee efficiency and overall company output.
-Allows you to focus more on the core functions.
- Flexible pay policies and a diverse range of payment plans designed as per your
- Secured data storage in the Cloud, enabling you to access it from anywhere and everywhere and use of standardized protocols to protect your data from
- Payroll outsourcing also lets you enjoy new-age digital tools which help in
-Recording of attendance through biometrics.
-Tracking of the location of employees.
-Having access to employee records through employee Self-Service portals.
-Relishing faster turnarounds for issues thereby boosting employee morale and producing happier workplace environment.