Why Payroll Outsourcing makes sense in January?
When you outsource the payroll system to a Payroll Outsourcing Firm, the major benefit is that you don’t have to find a new employee to manage payroll in the market. You will not only get the best services available, but it will also break down many cultural obstacles that will help in creating a sustainable and long-lasting organization. The management can thus concentrate on different aspects of the company and provide on-time payroll to the employees. It also helps in reducing the pressure on the accounting department that will reduce the chances of any legal complications with the Income Tax department.
Why Payroll Outsourcing makes sense in February?
During February, it is important to understand the amended regulations to ensure compliance with state and federal laws. It helps in avoiding any legal liabilities. Payroll outsourcing services will help you in reducing the burden. It will provide you with a current system that complies with the latest rules and regulations, taxes, penalties and many more. It will help your organization in saving itself from any potential legal problems or financial loss.
Why Payroll Outsourcing make sense in March?
During March, the overall pressure is at a peak in every organization. The employees and management will be on the edge of the seats to make sure the projects are completed on time so that they can have a fresh start in the new financial year. It gets tough during this month to manage the payroll properly. Also, during this month, the tax filing has to be done. Otherwise, it can attract penalties. A small mistake at any level can cause a lot of trouble for the management and the organization. Thus choosing a Payroll outsourcing service in India in March is a wise choice.
Here are some benefits of Outsourcing Payroll in January, February, and March:
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- Higher levels of accuracy: When it comes to maintaining accuracy, outsourcing payroll system can be quite beneficial. In most of the cases, the accuracy rates can go as high as 99.95%. Also, it makes it more comfortable for the departments and management in the company to function properly. The dedicated staff in the payroll service provider’s office will take care of the documentation, release of payments, compliance and other formalities without interfering with the day-to-day functioning of the company.
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- Affordable and cost-effective services: One of the major advantages of outsourcing payroll systems during January, February, and March is that it will cut down the operational cost and channelize funding to the core business processes. During these months, the pressure to complete pending projects is at the peak, and the company needs to ensure smooth payroll processes for both permanent and contract workforces. With the support for a dedicated team for payroll, the management can concentrate more on the internal functioning of different departments.
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- Fraud Check: During the last quarter, it has been noticed by many companies that the number of fraud payroll cases increase. It is not easy to weed out the fraud transactions done by the staff within the organization without the help of an expert. The Payroll Outsourcing firm will be accountable for the transactions. Thus they make sure that there are no fraudulent transactions, and they help in third-party auditing of the payroll system as well.
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- Form 16 benefits: One of the major headaches for organizations is to process form-16 to the employees. With the help of a dedicated team, the whole process can be done without any much hassle. The service provider will process the form 16 for the previous year. Their team will collect the documents, manage tax reconciliation and issue physical Form 16 to all the employees within the stipulated time.
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- Stabilization of Payroll Process: Before you enter in the next financial year, it is important to stabilize the payroll process so that there are no pending formalities left in the books. Outsourcing payroll systems in the last quarter of the financial year helps in smoothening the process. The Payroll Outsourcing Service in India will run the historical payroll using your payroll data so that you are confident to go live on the new platform. As you enter the new financial year, you will be all set to use an advanced and sophisticated payroll system.
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- Ensuring Statutory Compliance: The payroll service provider will take care of the statutory compliances and deductions for the previous financial year. Every year there are many amendments made in the state and federal regulations with which your company has to comply with before the end of the financial year. Sometimes the in-house accounts department can't have all the information about the amendments in hand to ensure compliance. In such cases, you may end up getting on the wrong side of the law that can attract heavy penalties. The payroll service provider will make sure that your books are completely in compliance with the new or updated regulations.
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- Direct deposit via payroll processing: With the help of the quick and efficient staff of the payroll service provider, you can enable on-time payroll processing using the direct deposit facilities. It will help in providing a sense of connectivity to the employees with the organization. On-time payments, especially during the peak months, ensure better returns in terms of productivity.
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- Avoiding penalties during tax processing: It is possible that due to the extensive workload during peak months, the accounting department can make some mistakes while filing the taxes. Any wrong tax filing will result in huge tax penalties that will lead to further legal consequences. By outsourcing the payroll system during these months help in reducing the workload and improving accuracy in tax filing mechanism. The payroll service provider will make sure to process taxes for all the employees and submit required documents on the relevant portals.
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- Modern technology and its benefits: The market is quickly changing, and technology is getting advanced every day. No organization can keep up with the latest changes and updates in the automated payroll system. On the other hand, when you outsource the payroll system to a service provider, they will ensure that your payroll system runs on the latest technology and all the latest amendments and updates are already filed in the system.
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- Saving up on processing time: Payroll processing is a very time-consuming job. It takes away a lot of staff-hours that management could have spent on streamlining pending projects in different departments. During the peak months, if you outsource the payroll system, it will help in freeing up the time for the management. That freed time can be consumed for value-added tasks to increase revenue.
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- Billing of payroll management: Please keep in mind that the payroll service provider will only start the billing once the payroll is live. It may take up to 3-6 months to migrate the data from the old system to the new one. In this period, the service provider will map the payroll logic and do historic and parallel run from the start of the engagement. Once the 1st run is live, only then the billing will commence. Thus, starting early during the peak months gives time to the service provider to streamline everything for the next financial year.
- Benefits of choosing Paysquare: We are pioneers in the field of payroll management. With more than 1000+ clients globally and over 15+ years of experience in the sector, we have the capability of processing more than 350,000 Payroll records monthly. By choosing Paysquare, you can stay assured that payroll will be issued on time, and the whole process will comply with the latest rules and regulations on organization, state, and management levels. During the setup of the system, we will make sure to consult with the management and understand the requirements before we start implementing the automation process at your organization.
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Final words
During January, February and March, the management, as well as the accounts department, are under a lot of distress. It becomes next to impossible to process the payrolls on time, and if the management decides to automate the whole process, things can get even messier. Thus, the best way to reduce the pressure on the organization and to ensure that payroll complies with the latest norms, outsourcing it to a service provider is the best solution.
