Tag: payroll

Top 10 Payroll Services and Payroll Software in India

Top 10 Payroll Services and Payroll Software in India

Payroll services that are outsourced is an act of delegating payroll administration to a third party having expertise in payroll processes. Generally, companies outsource their payroll functions to cut costs, and to get better services and to ensure smooth and error free monthly payroll cycle.
Payroll services are the most outsourced function in the business world. Titans like Ceridian, Automatic Data Processing Inc., Paychex have been responsible for cutting the paycheck for businesses large and small for many years.
Now that small and medium-sized enterprises have increasingly wrested market share from big corporations, large payroll companies have had to adapt their services to meet the needs of these smaller clients. Simultaneously, technology advances have led to viable payroll software solutions, and vendors have scrambled to meet the needs of SMBs who feel underserved by the payroll behemoths.
Can the payroll service providers meet the specialized needs of today’s small and midsize businesses? Will it be wise to outsource payroll services Or bringing payroll back in-house and using specialized Payroll software the best route for SMBs? SME Joinup breaks down both options to help you choose what is best for your business.
According to the recent survey by Small Business Taxation Survey, the businesses handling payroll internally, nearly one in four reports spending more than six hours per month on payroll. That’s at least 72 hours per year—nearly two full workweeks.
It is to assume that the hourly cost for internal payroll staff to be $36, these 72 hours translate into $2,592 per year. So the businesses doing it themselves are spending their own man-hours on the payroll, while those who outsource believe it’s worth paying someone else to…
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How To Get Rid of Payroll Stress From Your Business ?

How To Get Rid of Payroll Stress From Your Business ?

Human resources are important to the success of any business. As an owner of a small business, you know that people are your most important asset. But unlike large organizations, most small businesses do not enjoy the privilege of an HR department to handle administrative tasks such as payroll. This lays a big burden on the limited resources and adds to mounting risks and costs.

Here are some ways you can help take the stress out of payroll:

Reduce payroll-related cost

As a small business owner, you’re constantly on the look-out for avenues to maximize your investments. But unwanted costs in the form of non-compliance can affect the health of your business. ADP survey shows that organizations across the APAC pay up to $1.24 million as a penalty for non-compliance. Apart from these there are other costs of running payroll and HR systems in-house such as labour costs of staff working to keep payroll systems running on time and ongoing IT maintenance fees.

Investing in a reliable payroll solution can help growing businesses avoid a considerable cost. With the right payroll software, payroll processing can be made cheaper, more efficient and far more reliable.

Reduce payroll-related risk

Most small businesses do not have the budget capable of supporting the outcome of a crisis and continued business operations. This makes it important for small business owners to follow best practices to avoid risk. But the pressures of running a fast evolving business sometimes mean that these best practices are not adhered to.

ADP’s research finds that 37% of company data is left sitting in Excel or similar types of databases. This increases the risk of a probable misuse of data or a software crash could mean your employees not getting paid on time. Also, if the resource handling the complex spreadsheet system leaves the organization, it would be a payroll nightmare on your hands. Mistakes caused by using manual methods of payroll cost companies almost 1% to 8% of their total payroll. Payroll on cloud is accessible anytime and anywhere which helps you stay on top of your administrative tasks while not spending a lot of time doing them. It also ensures that no data loss occurs for any reason. 

Boost business growth with the right payroll provider

Most growing businesses operate in a highly competitive environment. This makes it important for small business owners to choose their tasks wisely and concentrate on strategic activities that would promote growth. By using the right technology, you can free up your time to focus on what matters.

A survey of small businesses by the Manchester Business School found that 88% of cloud users experienced cost savings and 56% found that cloud services helped them to boost profits which is a perfect recipe for growth. Moreover, cloud software grows with you – you don’t have to continually upgrade your software as your company grows.

Relieve your workforce from payroll stress

According to Gallup, companies with engaged employees outperform those without by up to 202%. The right employees are critical to the growth of your business. It is important that these employees are engaged in the right way. Since most operations are not automated in small businesses, they tend to employ more senior people to do administrative tasks.

Also as small businesses typically do not have the budgets to maintain large teams, there could be a risk of few people taking care of multiple tasks thus increasing the possibility of getting payroll wrong through human error. By removing payroll from your small band of employees’ job responsibility, you can make better use of their talent and free up their time to operate on people core job roles. This not only boosts performance and job satisfaction but also gives you the reassurance that your payroll is always up to date thanks to your reliable payroll partner.

Become more competitive with the right payroll software

Most small businesses which invest in a payroll software find that the benefits can go way beyond cost. Old, inflexible internal systems and processes can limit your competitiveness. A payroll provider can provide strategic value to your business, and makes you more competitive, with –

  • Predictable and scalable fees
  • Zero maintenance and infrastructure costs
  • Up-to-date compliance knowledge
  • Clear overall payroll costs
  • Single, easy to use, cloud-based platform

The best payroll provider knows your business inside out and has the right payroll solution that complements your business growth. ADP Vista HCMSM is one such solution which can give you tremendous benefits while protecting your business from errors stemming from lack of knowledge or visibility. Invest in the right technology today to build the business of your dreams.

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How Cloud Payroll Can Help You Save Time In Your Small Business?

How Cloud Payroll Can Help You Save Time In Your Small Business?

If you run a small business, you must be well aware that time is your most valuable asset. According to an e-Voice survey, 53% of small business owners say that the most difficult part of running a small business is having to cover multiple jobs and not finding enough time to get everything done. The same survey also quotes that of the many roles that a small business owner handles, keeping a track of accounts and payroll is enjoyed the least. Luckily administrative tasks such as payroll can be automated today with the help of a reliable software thus making a business owner’s life easier.

Cloud based software can be your answer to a low-cost and efficient payroll processing.

#1. Pay your employees in three simple steps with the right Cloud payroll solution

When on the lookout for Cloud payroll software, business owners should consider factors such as simplicity and ease of use. Manually updating your system with all of your employees’ database and running a software with an elaborate set of instructions on a monthly basis can be cumbersome. Choose a software which can best aid your business but not at the cost of your time. Essentially look for a software which can help you run your payroll in three simple steps – Upload payroll data, Process it and Make payment.

A flexible solution which comes pre-configured with all of your employees’ data will further enhance the ease of use. Another important consideration is to make sure that setup support is available to you.

The right guidance can help you transition faster from your current payroll system to a cloud platform. A payroll provider which can promptly address all your queries with a strict adherence to SLA should be considered. Seek out a provider which can give real time assistance via a web help-desk which will ensure optimal business-continuity with regards to payroll.

#2. Stay up to date with tax changes and avoid unwanted costs

Do you spend a lot of time working through changes in payroll compliance on your own? The right payroll software can help you stay up to date on changing payroll laws and tax rates. Choose a solution which is supported by industry experts which makes it easy to track, develop and implement any new changes in payroll related legislations. The good news is there are several reliable cloud payroll software available today with built-in tax liabilities and which are updated real-time with tax changes thus leaving business administrators stress-free.

#3. Increase employee ownership and save time through self-service portal

Most reliable payroll solutions give your employees the freedom to access their data at any point of time through an employee self-service portal. Employee portals allow employees to keep a track of their payroll history. They help cut down on redundancies and save a lot time from answering repetitive employee payroll queries. Moreover, it can also help you let go of all the manual paperwork and filings. Intuitive dashboards and reporting provide the right visibility to employees to answer their payroll questions on their own.

#4. Save time through better human resource management

Most payroll solutions also offer additional HR modules. An integrated HR module such as a Leave Management System can help you configure leave rules and policies. It also helps you streamline processes which in-turn makes tracking your employees’ leaves easy. These modules also come with in-built automatic workflow notifications which can help you stay on top of your employees’ day to day activities. All these features invariably help you in saving a lot of your productive time.

#5. Cloud Payroll Software: A valuable investment

To a small business owner who is juggling multiple roles on a daily basis, time is a precious commodity. To make the most of the time on your hands, invest in an automated cloud payroll software. ADP Vista HCMSM is one such software which can help you stay up-to-date on your payroll tasks while bringing down your administrative burden considerably. With several innovative features such as an adaptable payroll management platform, dynamic dashboards, effective leave management system, and easy to use self-service portal, this software can help address your monthly payroll challenges effectively.
As a small business owner, you give a lot to keep a business moving. Today, gift yourself a cloud payroll solution that can help you get back to doing what you do best – building your business.

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Key Benefits Of Hiring Payroll Processing Services

Key Benefits Of Hiring Payroll Processing Services

Hiring payroll processing services can offer small businesses an appealing and beneficial alternative to managing payroll internally. Tedious administrative and routine works like calculating payroll, preparing checks, determining tax obligations, and maintaining accurate records can be burdensome and costly. Outsourcing payroll services can help you cut cost, save time and ensure accurate tax calculations. Payroll companies can offer HR payroll solutions that help you improve your company’s human capital management and benefits.

Outsourcing payroll for SME has become even more viable as third party payroll companies are shifting focus from big organisations and offering customized services to small businesses. The significance of payroll outsourcing can better be comprehended by looking at the key benefits it provides –

1) Accountability

Tax regulations change from time to time and that increases the chances of making errors. Corporate payroll services can cover the requirements of filing state and federal payroll taxes for your business. This reduces the headache of knowing the latest tax code, filing deadlines, deposit requirements, tax tables, government forms or payroll software version.

2) Productivity

Employing the expertise of a professional third party payroll company eliminates the time-consuming process of having you or your staff manage payroll. Thus rendering you and your staff free of monotonous administrative work, allowing you to use your valuable time and energy for core and more important business activities.

“One of my rules is if you have one employee, get a payroll service,” says Rhonda Abrams, president of the business services site ‘The Planning Shop’ and author of the guidebook ‘Hire Your First Employee’. 

3) Cost-Effectiveness

Carrying out the payroll function in-house requires you to hire experienced staff to do the activities involved, you may have to purchase relevant payroll software and buy software updates when needed. You may also have to bear cost of technical support provided by software vendor. On the other hand, HR payroll solutions providers charge a reasonable fixed amount and additional fee for extra services. This is often more cost-effective than maintaining an in-house payroll team and software.

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4) Multiple Options

Payroll outsourcing India offers varied service choices to clients. Clients can have their employees’ payroll data uploaded in the vendor’s online system and managed by them. Many payroll outsourcing companies also offer services outside of payroll processing, such as new-hire reporting, tax payment and reporting, and employee benefits assistance.

5) Financial Reporting

Payroll system outsourcing comes with added benefit of having all your payroll related reports ready on time, effortlessly and effectively. Payroll outsourcing firms provide reports such as summaries on earning statements, time sheets, expenses, payroll by departments and several other useful reports.

Hire payroll services for your business!

Every company is different, and there is no single software solution that is perfect for every employer. If you are interested in finding out what integrated payroll solution will work for your business then Intero, Finsmart, Paysquare, TCF and Top Source are the reliable names to go for. These third party payroll companies are expert at what they do and can meet your needs.

Promising high level of professionalism and customer service, these payroll services providers are well aware of the requirements of small and medium sized businesses. They can help you save a lot of time and even money, allowing you to concentrate on more important parts of your business.

These payroll outsourcing companies are run and managed by highly qualified chartered accountants, who leverage latest technology and have stronghold of statutory requirements. These vendors can offer you – accuracy and consistency to increase payroll efficiency, compliant payroll services, high level of automation, improved operating efficiency, and protection against employee dissatisfaction, costly errors and hidden costs.

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Should Payroll Management be Outsourced or Kept In-House?

Should Payroll Management be Outsourced or Kept In-House?

Payroll stays an integral part of any business operation. No matter how big or small a company is, payroll happens to be one of the key business activity. And as more and more companies are outsourcing payroll function, the question arises whether to keep payroll an in-house function or involve a third party.

Need of payroll management outsourcing for small businesses

Payroll management administration had always been internally handled by the companies, especially small businesses. But this is not the case anymore. Small companies are gradually realizing that payroll processing is a function that requires expertise. The technological advances, software updates and statutory requirements can be very demanding in terms of time and money.

Payroll management services cover a spectrum of activities including salary and wages calculation, withholding of taxes, distribution of withheld funds to respective government agencies and direct deposit of in-hand salaries into the bank accounts of employees. These tedious and routine functions can keep any business owner or his key employees occupied while they could better have worked on more important revenue-generating or sales-enhancing activities. While saving time, outsourcing payroll services can help cut cost and ensure accurate tax calculations. Payroll companies can offer HR payroll solutions that help to improve a company’s human capital management and benefits.

In a recent survey conducted by Actionable Research-1, nearly 75 percent of CPA’s (Certified Public Accountant) who serve small businesses felt that their clients do not have the necessary expertise to handle the demands of payroll processing. And 68 percent suggested their clients’ time would be better spent working on the many other demands of their businesses.

Payroll management consultants, who had been serving corporate until recently, have been getting requirements from SMEs. Looking at the potential opportunity, many big and small payroll outsourcing firms are now offering customized payroll services for small businesses.

It has become much easier for small and medium-sized companies to leverage benefits of outsourced payroll.

So your small business should keep payroll in-house or outsource?

The case of outsourcing is stronger than ever. Several small companies have already outsourced their payroll function completely or partially. With payroll management services giving wide options to business owners, outsourcing is turning out to be a win-win situation for SMEs.

Small business owners tend to wear too many hats at the same time. But as the business grows this becomes more and more impossible. The processes start becoming more and more complex. This is the time when small businesses should consider the advantages of outsourcing.

Whether you are a start-up or have a considerable strength of employees, you can get benefited immensely from customized and value based payroll solutions being provided in the market. The cost that you spend on hiring payroll professionals, getting required software, regular updated versions of software, technical support, maintaining and securing database – You can instead invest this money on your revenue generation!

Other than being cost-effective, payroll management outsourcing will offer you following advantages –

1) Better Productivity

Outsourcing payroll for SME can save their time, efforts and costs incurred on carrying out payroll operations in-house. They offer customized solutions for different businesses, for instance, some provide the choice of flexible savings accounts or retirement accounts, while some offer specific tax saving proposals and insurance payments. Thus efficiently managing payroll with better productivity.

2) Zero Penalties During Tax Processing

Inappropriate payroll management could lead to inaccurate tax filing resulting in tax penalties. Outsourcing payroll processing services to professionals can save you these hassles and ensure accurate payroll processing. The best part is that third party payroll companies provide tax guarantee benefits, which means if they file or make payments late, it will be they who will be held responsible for covering the cost of penalties.

3) Most Advanced Technology

A constant question for small business owners is whether they have the latest version of their payroll software and the most recent tax tables installed on their computer. You can easily avoid such problematic situation by letting a payroll outsourcing company to take care of it. They use the latest software programs for payroll processing and tax computation for minimizing errors and delays. Also your employee data stays protected through an authorized control panel that you can access anytime.

4) Financial Reporting

Payroll system outsourcing comes with added benefit of having all your payroll related reports ready on time, effortlessly and effectively. Payroll outsourcing firms provide reports such as summaries on earning statements, time sheets, expenses, payroll by departments and several other useful reports.

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Tapping into the benefits of payroll outsourcing can prove highly beneficial for your business. When looking out for an outsource partner make sure it is someone who is professional and reliable. An expert payroll solution provider like Paysquare can be your trustworthy partner. They are one of the most preferred payroll outsourcing company in the market, with an exclusive focus on payroll outsourcing. What makes Paysquare the number one choice is its ability to consistently ensure accuracy in payroll processing across its engagements.

Paysquare’s client portfolio encompasses reputed names such as ITC, Kirloskar, Fiat, Atlas Copco, Johnson Control, Hitachi Consulting, Kimberly-Clark, Marico, Coca Cola and JCB.

Paysquare is the specialist in the area of end to end payroll outsourcing services for small businesses.

Certification and Awards

A SSAE 16 & ISAE 3402 certified organization with ISO 27001/2013 Standards, Paysquare featured among India’s 20 most promising compliance companies Featured by CIO Review for its outstanding contribution in the field of risk, compliance and governance.

Paysquare CEO, Mr. Rakesh Jain, received Sarathi-IT award, felicitated for his outstanding contribution in the field of information technology (IT).

Paysquare CEO, Mr. Rakesh Jain, received IT-Technovation award 2012 from Indira Group of Institutes (IGI), felicitated for his outstanding contribution in the field of information technology (IT).

Similar to Paysquare, Intero also offers reliable payroll services. The company is currently catering to several clients in government, manufacturing, hospitality, real-estate and infrastructure industries.

TopSource is another payroll expert offering comprehensive services. They won the coveted Service Provider of the Year award, by Pay & Benefits Magazine in March 2014.

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Why The #1 Task Small Businesses Outsource Worldwide is Accounting And Payroll

Why The #1 Task Small Businesses Outsource Worldwide is Accounting And Payroll

There is a lot going on when you pay your employees. It’s not just a game of writing checks, clocking employee billable hours or cash handling. For small businesses that aren’t well versed in accounting and payroll processing, In-house processing is a hidden money burner and a major headache with spends upwards of 2 lakh per year just in direct labor costs.

Why consider outsourcing accounting and/or payroll services?

Before outsourcing payroll and/or accounting services, the first question you need to ask yourself is whether you truly need to? If you’re acquainted with accounting or have someone in your office that can take on the job, it might be OK to keep this in-house, but only if you have less than 10-15 employees.

Just managing payroll itself, is however, not everyone’s cup of tea & for everyone out there who thinks this job needs no experience and can be done easily; have a look at what your responsibilities can be as a accounting/payroll manager:

  1. Filing quarterly reports.
  2. Withholding employee taxes.
  3. Paying withholding to government agencies.
  4. Making summary filings at the state level.
  5. Managing employees’ health and pension plan contributions.
  6. Family leave assessments & handling state disability/ unemployment.

Now, for those who sincerely think they weren’t aware of this or were aware of these responsibilities & were ignoring them till now, you could have a serious issue at hand. An increasing number of companies are outsourcing their accounting services requirements to expert vendors. An outsourcing partner can deliver superior results and minimize costs, while allowing you to focus on strengthening your focus business areas.

Benefits of using outsourced accounting and payroll services?

The small business owners that we talked to who use online payroll and accounting services say they see a variety of benefits, including:

  • Reduced headache: of recruiting, hiring and managing clerical staff with accounting work outsourcing. Business owners who outsource payroll eliminate a major source of personal pain.
  • Using payroll software means no angry employees, no technology headaches and expert advice.
  • Reduce costs: Eliminates unnecessary operating costs and overheads; save money on wages
  • Do not ever miss any statutory compliances with outsourcing of accounting & taxation work
  • Better technology and more experts with outsourced accounting, payroll services

Accounting Outsourcing costs totally depends on the size of the business and its operation scale. Accounts outsourcing services can be customized based on the budget, which the client may have, depending upon following outsourcing models: Onsite full time, Onsite part time accounting or Offsite accounting.

The majority of the SMALL BUSINESSES are under 25 employees, and this means that the owner has to be more productive by generating more sales hence Outsource Payroll.

Outsourced Payroll service features include:

At a basic level, you want a payroll service that keeps track of employees’ wages and fees, processes paychecks and records and organize everything for evaluation of tax. However, today payroll companies offer much more than you expect and the thing is it’s good because the whole point of appointing an expert is to get more; here is checklist of what ‘more’ they offer:

  1. Employer tax payments: Online payroll services handle all the tax-related issues, take care of complicated tax forms, online payroll and accounting services thus help reducing the risk of something going wrong.
  2. Benefits administration: They offer ways to enhance employee benefits. Small businesses can use these tools to manage health insurance plans, flexible spending accounts and transit reimbursement plans
  3. Retirement services: These systems make it much easier for businesses to set up and monitor IRA retirement plans, and for employees to control their contributions.
  4. Paid time off: Keeping track of employees’ billable hours &sick leaves. These features also make it easy for employees to request time off and for employers to approve or deny it.
  5. HR forms management: Payroll services also provide a way for businesses to keep important human resources forms and documents in one, easily accessible and safe place thus minimizing workload and keeps everything organized.
  6. Report filing: Handling all of the required reports that must be filed with federal, state and local governments, also sending those reports on time, some services also offer businesses the ability to review them online.

Outsourced Accounting and Bookkeeping Services

Good accounting firms believes in understanding customers’ exact needs and developing a customized solution that best suits their diverse business needs. They cater to the accounting needs of global clients by offering a comprehensive range of services, which includes –

  1. General Accounting and Bookkeeping Services: Preparation and maintenance of day-to-day bookkeeping and monthly or quarterly accounts, where they act as your accounting bookkeeper.
  2. Preparation of Financial Statements: Preparation of annual accounts for the statutory annual audit
  3. Preparation of Tax Returns: Preparation of periodic tax, sales tax, and other returns
  4. Cash Forecasting Services: Analysis of the cash requirements of the business and forecasting cash requirements
  5. Debt Collection Services: Assistance for the recovery of debts and taking necessary legal action
  6. Payments to Creditors: Assistance with making payments to creditors while leaving ultimate control with the management
  7. Cash Handling Services: Assistance with treasury functions like operation and monitoring of high-interest deposits and current accounts
  8. E-accounting services:They have expertise in this area and can help you with any of your e-accounting functions
  9. Accounting Setup Services:They can help you achieve your business objectives with our accounting setup services.
  10. Additional Services typically include:
    • Accounts payable services.
    • Accounts receivable services.
    • Financial reporting services.
    • Accounts reconciliation services.
    • Write-up Services.
    • Invoice processing services.
    • Migration of Legacy Systems.
    • Customer invoice services.

How much does outsourcing accounting / payroll cost?

Payroll & accounting services pricing structure is pretty standard. Most online payroll & accounting services charge users a monthly flat fee, based on the services being provided and the number of employees. Many of the services that we found offer businesses different packages. For example, a basic package might only include the running of your business’s payroll & accounting, while more advanced packages might also include paying your taxes and printing forms for employees. Monthly fees can range from anywhere between 12k and 60k INR per month depending on the package chosen.

There are onsite/offsite accounting services wherein onsite costs around 20-25k INR per month whereas an offsite service might cost 15-20k INR per month. Payroll services for small & medium enterprises are usually charged on the basis of number of employees which can be 10k INR for up to 30 employees & 100-150 INR per employee above that number. In addition, most services also charge an additional fee per employee check paid. We found that those costs can run anywhere between 120 to 500 INR.

Choosing the right one

If you’ve decided you’re ready to choose an accounting and payroll outsourced service, it’s time to decide which one might be right for your company. The small & medium enterprise owners we spoke with said some of the most important factors to consider include:

  • Cost
  • Ease of use
  • Customer service support

A more robust way to help determine the right payroll & accounting service for you is to make sure you are asking the right questions. Payroll & accounting experts that we interviewed told us that before making a decision, you should ask potential payroll & accounting service providers questions, such as:

  1. How long have you been in business?
  2. How often are your tax tables updated for compliance?
  3. Do you have other clients in my industry?
  4. How important will my business be to your company?
  5. If I have a question or concern, whom do I go to?
  6. What’s the structure of your customer service department?
  7. Can you integrate with my employee benefits offerings?
  8. How can I monitor all of my payroll & accounting transactions with you?
  9. How will you handle my business as my company grows?
  10. What are your fees and contract policies?

What to watch out for

You also want to watch out for any potential red flags when researching online payroll and accounting providers. Here are some things to watch out for:

  • Make sure the company you outsource your payroll & accounting to is trustworthy and dependable so you can be sure your critical information is in good hands. The company should be bonded and insured.
  • Make sure the online payroll & accounting service is properly paying the IRS on your behalf. If they aren’t, your business could incur huge tax penalties.
  • Make sure your online payroll & accounting service providers are aware of your tax requirements and deadlines.
  • If you are using an online service, make sure they company provides a secure connection to ensure your data is protected.
  • Choose a service that is very transparent and up front with its clients.

 

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How To Choose The Best Accounting Outsourcing Agency – Answers by Maple Tree for Small Business

How To Choose The Best Accounting Outsourcing Agency – Answers by Maple Tree for Small Business

Most of the small business owners who want to concentrate in building and establishing their businesses can save their time, worry as well as money by PAYROLL OUTSOURCING. Running a small business requires handling several responsibilities – the more you take responsibilities, the less efficient you will become and less likely you are to increase the success and profitability of your company.

The majority of the SMALL BUSINESSES are under 25 employees, and this means that the owner has to be more productive by generating more sales,” says Randhir, the director of Assure IT Services. In assessing, whether or not you should OUTSOURCE PAYROLL there are several questions to consider before you make a decision:

How much payroll outsourcing cost?

Costing depends upon the scope of work defined and the nos of employees. Scope of work would include monthly payroll processing, compliance management-PF/P.TAX./ESIS/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. These activities are conducted on a monthly/quarterly/yearly basis. The clients prefer a break up on the costing depending upon the activity. e.g. What would be the cost for Investment proof auditing which will be an activity conducted once in a year only. Number of employees also plays a crucial role. In case of start up with less than 20 employees the client may be charged a fixed amount per month with a cap on the number of employees. e.g from 1-25 fixed charges of Rs. 5000/- per month. In case of companies with an substantial employee base may be charged on a per employee per month basis for basic monthly payroll processing, rest of the activities like employee F&F, Investment auditing will be quoted separately.

Which seems to be a good option, In-house or outsourcing PAYROLL?

The general trend seen in the last few years is more towards OUTSOURCING PAYROLL. Payroll is a once in a month activity in every organization but it requires joint efforts of more than 2 people from different departments coordinating with each other. i.e. the HR person who takes care of the employee records/salary structure CTC working etc. and other person is from Finance who needs to take care of compliance i.e. monthly tax challans, quarterly and annual returns filing, investment auditing, FORM 16 submission, handling tax queries of employees etc. For a start up/Small /Midsize company using the 2 resources for single activity is a costly affair and for a large organization with a PAN India presence will require more than 2 resources in both departments (HR/Finance) to coordinate between the Head Office and Branches. So the best solutions seen is to outsource the activity to a single entity and appointment a single resource to coordinate with the third party on all activities starting from payroll to taxation and compliance. Compliance is getting tougher day by day, companies are paying heavy penalties in terms of late tax returns filing, short tax deduction, incorrect calculations etc. Replying the default notices and other compliance queries take a lot of the employee productive time though these issues are completely non-productive in nature. Companies want their employees to focus on the core activity for which they have been appointed and hence outsourcing such important but non-core activities becomes a better solution.

Is my employee data secure when I OUTSOURCE PAYROLL?

Employee data security is an important aspect of payroll outsourcing. Data security can be of 2 kinds a) Having a robust data backup systems & b) Non-disclosure of client employee information to a third party. Data Backup Systems – Data is backed up on internal servers and also at other backup systems situated at a different location. In case of a sudden failure of internal systems data can be restore from other locations within no time. Data backups are broadly classified as monthly backups/ quarterly / yearly backups. Once the active month is processed and closed a final cut backup with be generated by the system. In a similar pattern the quarterly and yearly closed backups are generated. Clients also sign a non-disclosure agreement with the payroll outsourcing company preventing them from disclosing any employee information without prior permission.

How to choose right payroll outsourcing partner?

Payroll processing as an activity comprises of 2 key aspects which is Processing of monthly payroll & Auditing of processed data thereby maintaining accuracy. In PAYROLL PROCESSING data accuracy has to be maintained at the master level as well as at the calculation level. Before choosing a payroll partner one must understand the practices implemented by the partner to process and audit the data at the master level and at the calculation level. Most of the time the auditing aspect is ignored by the partner as he expects the client to audit the processed data at his end, in such a scenario the whole purpose of payroll outsourcing is defeated. After auditing if the client comes across errors in the processed data then later on he would prefer to move to another partner or go for the in-house processing option. Points to be considered while selecting the payroll partner would be

  • Understanding the payroll process flow adopted by the partner. How does the partner process payroll for its existing clients.
  • Internal audit practices built by the partner to maintain the accuracy in data.
  • Knowledge on the subject matter. Is he partner updated with the changes happening in statutory compliance? E.g taxation, investment, P.F.,P.TAX etc.
  • Customized plan of action designed by the partner for the client in order to maintain the deadline of the payout date.

How much employee strength do you need to OUTSOURCE PAYROLL?

Today companies prefer to have their systems in place from day 1 itself. Every organization however big or small in a competitive environment thinks alike. Assignments get broadly classified under core and non-core activities. Any assignment that adds to the productivity of the company or the employee may be internally managed. Assignments which are routine and mandatory but do not add to the company’s productivity in terms profit or any other format and also demand additional resources to manage are preferred to be outsourced. The employee strength in the company is not anymore a deciding factor. The HR / Finance Head in an organization has to decide whether he should invest 2-3 days in a month on a non-core activity of processing payroll or invest the same time on a core activity within the organization.

About Assure IT Services 

Assure IT Services is a PAYROLL PROCESSING company in Mumbai, offering payroll services to start-ups and mid-sized companies in India. The company offers 360 degree payroll management outsourcing solutions with the state-of-the-art software and a team that is well-versed in payroll services.

Randhir Nagvenkar is a director of Assure IT Services. He is a management graduate and has played multiple roles, from product marketing to implementation at the client side. Over the years he has gathered skills and knowledge in executing and managing large scale payroll implementation projects in various industry verticals.

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