- Processing payroll and employee payments as well as and withholding tax calculations
- Issuing cheques or depositing funds directly to employee accounts
- Calculating government taxes, and making tax withholding payments
- Complying with norms and creating relevant reports
- Taking in consideration things like employee benefits
- Managing pension contributions
Accuracy:By using outsourced service providers, companies will gain access to experts with the right technology and capacity to offer accurate results that can reach up to 99.95%. This accuracy ensures efficient management and deters irregularities.
Avoid fraudFraud by staff is a prevalent issue within many companies. By outsourcing, the entire process of handling payroll and accounting, accuracy and quality is ensured as service providers will be held accountable for any anomalies in the transactions.
Save time:Outsourcing payroll frees up time and employees, allowing the more important areas of your organization to benefit. Processing payroll involves a host of activities and takes up a lot of time that can be instead spent more effectively by improving customer service, finding more business, or releasing a new product line.
Avoid penaltiesFailure to comply with the various rules and regulations can lead to a large number of penalties not to mention the legal hassles involved. Payroll service providers have more than sufficient knowledge of the ever changing compliance norms. Thus their clients can rest assured and leverage their expertise to make sure they do not land into any legal problems. Disadvantages of outsourcing payroll:
Loss of Control:Handing over payroll operations to a third party gives you less control over the financial data and confidential information associated with it.
Cost:At times, payroll services can be expensive. In such cases it is better to take informed decisions about which provider suits your budget and which packages you should opt for. Some companies make the mistake of choosing comprehensive packages even though they may not need it. Thus it fails to provide any value to them.