Business consultants have long advocated outsourcing non-core functions.
A non-core function is one that is not a profit center (meaning, you don’t charge customers for it). A non-core function may be essential, but doesn’t differentiate your business strategically from competitors.
In most businesses, administrative and back-office activities such as payroll are non-core functions.
Outsourcing Payroll (non-core function) means an act of delegating payroll administration to third party having expertise in payroll processes. Generally companies outsource their payroll functions to cut costs, and to get better services and to ensure smooth and error free monthly payroll cycle.
But the question business owners and managers want answered is: what do you actually gain from outsourcing payroll? Is it worth all the time and effort to investigate and identify appropriate and the best outsourced service providers? Then there’s the work involved to transition the function outside to the third party service. Do the benefits of outsourcing outweigh that effort?
All the above questions needs appropriate answer, right?
So the Best Payroll Outsourcing service provider should fulfill some of the crucial elements in payroll management. Let us find them out!
1. Complex payroll rules and calculations:
With so many statutory payroll rules, employee benefit programs, employees joining & leaving and taxes to consider, it is becoming extremely challenging to process the exact salary and reimbursements of each employee. Even if you can do all this by yourself, how can you be sure that everything has been taken care of? How will you verify the accuracy of your calculations? Do you have a safe and secure mechanism to do payroll processing? Professional payroll providers with the power of technology, should be in a position to perform tedious calculations and bring out desired output with zero error & 100% compliance.
2. Payroll Reports:
Today technology is playing a vital role in easing tedious manual work. Payroll service providers of this century adapt to changes. Payroll processing systems (software) is the talk of the town today. Thus payroll service providers with technology will be the right choice.
Payroll processing systems provide a wide array of reports like monthly pay register, Salary disbursement letter as per upload format of banks, monthly tax report, salary progression chart etc., that address the most common reporting requirements to complex. You can quickly get the outsourcing company to deliver specific & ad-hoc reports for your custom analysis. Outsourcing company should have worked for multiple clients. Such vendors will be aware of the correct MIS data helps in analyzing of salary cost across various functions.
3. Compliance with government regulations:
Organizations in this complicated world of government tax regulations are legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to government agencies. Government rules and regulations are always changing and business owners can’t be expected to stay on top of these changes.
Choosing a professional payroll providers, who stays updated with current rules, regulations and changes in tax rates can help organization being compliant and avoid undue fines and penalties.
4. Security and Reliability of the Provider:
Payroll processing is a complex and potentially risky business operation. There is always a risk of identity theft, embezzlement of funds, or tampering with company records for personal gain. To counter these issues highest level of security of ISO 27001 needs to be in place at your data center, SAS70, encryption, Advance level Firewall etc. have proved to secure important data’s. With recognized professional payroll providers the data is always safe and secure.
The payroll provider should have the resources to keep up with the changing laws and regulations around employment, healthcare and taxes.
5. Track Record Serving Businesses like Yours:
The Payroll Provider should have a strong track record of serving businesses your size. They should have worked or have experience in similar industries.
Whether your business needs to outsource payroll services or not depends on many individual factors, and you should carefully analyze all the data before deciding to hire a professional or do your own in-house payroll management. Always exercise caution before hiring a payroll company. They will be handling a very important part of your business, so a high level of professionalism and customer service is very important. Finding and hiring the Best payroll services provider will save you and your employees a lot of time and even money, allowing you to concentrate on more important parts of your business.
Looking for Professionals who can be your partner and take care of all your Payroll management activates and help you focus on your core business activities and employee engagement activities?