REASONS BEHIND WHY DO COMPANIES OUTSOURCE PAYROLL SERVICES
Businesses need an effective solution to manage employee payroll processing. This is where Payroll outsourcing companies come in, and manage end to end payroll requirements of their clients which include managing employee salaries, overall payroll related reports, managing tax and compliance, leave and attendance and much more.
Payroll management can get very expensive, but because of payroll outsourcing companies, it is possible to manage end to end payroll processing very cost-effectively. This reduces the complexity of the organization’s payroll processing and makes the entire payroll process very reliable and flexible.
BENEFITS OF PAYROLL OUTSOURCING SERVICES
There are several benefits to payroll outsourcing in which companies’ handover their entire headache to payroll outsourcing companies and get relief from payroll hassles. Some of the benefits from payroll outsourcing include
- Outsourcing their payroll processing actually helps the organization save cost. Managing payroll processing with in-house employees can get very expensive, considering the infrastructure expenses as well as the cost of errors and missed compliance
- They get access to professional payroll processing services
- They do not need to worry about complex rules and calculations, which change often
- They get ready access to better reports, instantly
- They have access to experts in payroll processing and payroll management field
- Enhanced data security including back-ups and redundancy mechanisms
HOW MUCH DOES PAYROLL OUTSOURCING COST?
The cost of payroll outsourcing in India depends on the scope of work defined between the service provider and the organization. Usually the number of employees in the organization can give you a ball park view of what payroll outsourcing is going to cost, but to get to detailed costs, it is necessary to reach to an agreement in terms of scope of work included for payroll management.
The scope of work could include monthly payroll processing, compliance management-PF/BONUS/GRATUITY/ESIC/Taxation returns filing, other activities like Full & Final settlement, Investment proof checking and auditing, Form 16 generation, Default notice management received from the Income-tax department etc. all these activities are processed on a monthly/quarterly/yearly based on client requirements.
WHO NEEDS PAYROLL SERVICES?
Every organization, whether it is a start-up, SME, large company or a MNC enterprise needs payroll management services. There are multiple ways where companies can manage their payroll processing like in-house, using software or by outsourcing the entire payroll management process.
Most organizations face challenges in payroll processing as it is very time consuming and is very time sensitive. Also the compliance related to payroll processing can be a big challenge as there can be heavy penalties for non-compliance. This is one of the reasons why most successful organizations and owners prefer to outsource their entire payroll management process and have an expert like NAS Solutions come in and manage this for them.
HOW PAYROLL PROCESSING WORKS?
In most companies, if you say the word payroll, people usually get frown. It is common to have payroll related delays or errors creeping in payroll often. Several companies have in-house payroll staff, but may not have the necessary industry standard automation tools to help manage payroll processing in an automated fashion.
This creates challenges to the teams as most of the work tends to be manual in nature. It is common to have errors creep in, which can create multiple problems. Payroll processing teams gather inputs from HR and pick up data from several other systems like leave and attendance to finalize the payroll computation for the employees. Once that is done, based on the tax declarations made by the employees, total tax liability for the employee is calculated and taxes to be deducted for that particular month are finalized, which gives the final payslip for the employee.
For the amounts that have been deducted, returns need to be filed, so that the credit for the tax payment reflects in individual PAN accounts of employees. Payroll processing in India has really matured to a good level and capable payroll outsourcing partners like NAS Solutions are making things really easy for companies who have payroll processing challenges.
In the present scenario where one of the major reason for outsourcing the support services is to avoid the legalities involved in it, a reliable agency is required on which you can easily put your faith. NAS Solutions is present to take care of all your legal compliance. We are covered under all the statutory laws and we take utmost care of our legal obligations.
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