What is payroll processing?Payroll processing is much bigger and far more critical than simply paying wages & salaries and printing salary slips. Some of the critical things that HR teams do include calculating the correct value of salary and wages, computing the statutory deductions, depositing them with the respective statutory bodies, complying with the various labour welfare rules and laws, and then finally issuing the salary slips for every employee in the organisation. This is over and above maintaining the employee-wise record for future reference and regulatory compliance. This is not a one-time activity. This needs to be repeated every month, month after month! Unfortunately, the nature of the job is so crucial that one error in any activity has the potential of becoming a huge controversy which might even attract legal as well as monetary penalties! All this leaves the HR team with very little time and energy to focus on their core job – hiring the right talent and retaining them! However, with the rise of Payroll process outsourcing, things have become much easier for HR teams as they could now outsource their non-core payroll processing jobs to specialists and focus their energies on hiring and retaining their resources.
How does payroll processing help?The key advantage that payroll process outsourcing companies bring to the table is that they have the necessary tools, technologies and expertise to manage the complexities of payroll irrespective of the size of the company. They even have teams that are trained specifically to manage these activities and also make sure that these teams are aware of the latest developments & changes in the relevant laws, rules and regulations. This ability to manage payroll processing on a large scale means that payroll outsourcing experts help in minimising or even eliminating the various errors in the process. These experts help in bringing efficiencies in things like:
- Preventing delayed salary disbursement
- Eliminating or minimising payroll errors
- Maintaining accurate employee information
- Creating a sync between departments and even over geographies.
- Accurate calculation and deductions of tax
What are the indirect benefits of payroll outsourcing?While streamlined and error-free salary disbursement is a direct benefit that organisations can experience, there are many indirect benefits of payroll outsourcing.
- Additional time and energy become available to better focus on business growth and core jobs
- Substantial reduction in overhead cost.
- Better compliance with the applicable rules and regulations.
- Substantial savings in time, resources and effort
- Improved employee morale resulting in enhanced productivity and efficiency.