You must have heard a lot about the outsourcing of various business functions these days but if there is one role that seems to be ideally suited to outsourcing it is the preparation and execution of payroll. ‘Lets Face it, you dint get into business to manage paperwork and keep track on payroll legislations
According to our study as many as half of all Indian companies use external payroll services rather than persevering with this complex work in-house. So what have all these companies spotted that others have yet to discover? Here are the three main reasons why the outsourcing of payroll services appears to be proving beneficial especially to smaller enterprises:
Top 3 reasons why outsourcing payroll services can be a benefit to your business:
1. Dealing with the increased burden of employee legislation:
The ever increasing burden of red tape and employee legislation emanating from both State and Central authorities often has a knock-on effect on payroll. When you add on all the extra requirements involving Provident fund, Employee State Insurance Professional tax and legal leaves in a real Real Time Information manner, it has become almost impossible for one person on your staff to keep abreast of every new development.
Oversights and unintentional mistakes invariably occur and these usually lead to the unproductive consumption of even more precious time. By outsourcing to a specialist provider of payroll services, you are effectively farming out this headache to professionals whose full-time responsibility is to keep abreast of all new regulatory stipulations.
One of the most compelling reasons for outsourcing payroll services would appear to be that most employers actually find they end up saving money. The reasons for this are quite clear for all to see. Instead of paying one or more employees to handle what is essentially a one day a month event, farming out the role to an external agency which does nothing else usually turns out to be substantially cheaper because a well run provider of payroll services will be geared up like a production line with enormous economies of scale. Many companies find that they are amazed by how much they can effectively save by outsourcing.
Apart from the savings on direct labour and establishment costs, outsourcing payroll services means that you will not have to invest in various software packages in order to prepare salary runs and maintain accurate records. Historic data is kept secure with us and any information that either you or your employees require can be accessed quickly and conveniently.
Although the timely and accurate production of your monthly payroll and compliance with taxation and regulatory demands are essential to the smooth running of your business, they present a formidable and expensive challenge to anyone who is not properly geared up for it and this is why payroll services prove such a popular and cost-effective candidate for outsourcing. For an informal discussion about how our specialist payroll services department could help you, please contact us.