Payroll is a crucial process for every organization – big or small, established business or a startup, and outsourcing payroll services is a wise decision as it will be more cost-effective for you in comparison to managing an internal payroll management team. It will also free up your time and resources to focus on strategic business activities.

Payroll Outsourcing

  But before you start exploring the companies who handle payroll outsourcing in India, consider the following important parameters to differentiate among the lot and choose the best fit for your company:

1.Technology Used for Payroll Management

The technology used by the payroll service provider is an important differentiating factor to consider. Most of the payroll outsourcing companies in India use third-party software which has negligible scope for customization and integration with other software tools. However, there a few service providers who offer advanced cloud-based payroll management services which allow easy customizations and access to crucial information as per client’s requests.

2. Nature of Customer Support Provided

Some payroll service vendors provide ticket-based customer support while others offer phone-based support. You should inquire about the level and mode of customer service you will be getting along with clearly –defined turn-around time to respond to your queries and to rectify payroll errors if any. Also, check whether the payroll outsourcing company will assign a dedicated payroll account manager to ensure smooth implementation and running of the payroll process at your company.

3. Expertise in Handing Statutory Compliances

Payroll process in India needs to be compliant with various statutory laws which involve complex rules and complicated calculations that are modified on a regular basis. You must look for payroll outsourcing companies who have expertise and experience in handling the entire gamut of statutory compliances; PF, Professional Tax, ESIS, Tax Returns filing are just a few of them.

4. Security of Sensitive Data

Payroll outsourcing involves sharing your employees’ sensitive details and therefore you should be confident about the data security measures being adopted by your payroll service provider. You must ensure that there will be data access restrictions, regular data back-ups, software updates, anti-virus checks, etc. to avoid any security breach. Also, your payroll outsourcing vendor should educate your employees regarding the best practices like using strong passwords and accessing payroll application in a secure network only.

5. Additional Cost or Hidden Charges for Additional Support

Many payroll outsourcing companies in India charge a different fee based on the monthly/quarterly/ yearly activities performed for their clients. However, their charges may also differ according to the services solutions they offer to the client company such as employee attendance, leave tracking, performance incentives received, full & final settlements, pay deductions, system up-gradations in future as your business scales, to name a few. It is important to clarify any additional or hidden charges for additional support provided as per your business needs. Keeping all these criteria in mind will help you select the most efficient and cost-effective solution provider to take care of your payroll outsourcing process, thus allowing you to focus on your core business activities.

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