The advent of globalization has essentially opened up a lot of opportunities for businesses to expand their horizon. At the same time, regulations have undergone a sea change to keep up with the new challenges. Companies now have to be compliant to the legal laws and regulations in regards to how they manage the business, their employees, and their treatment towards their consumers. The concept of compliance is to make sure that corporations act responsibly and operate within the legal framework.
A lot of the company’s effort and money goes into ensuring compliance to these laws which could deal with a range of issues; from the payment of minimum wages to maternity benefits or professional taxes.
Therefore, dealing with statutory compliance requires for companies to be well-versed with the various labor regulations in their country of operation.
Ok but why there is a need for statutory compliance?
Adhering to statutory compliances is necessary for all big and small companies in the world to keep their businesses safe from the legal trouble. A deep knowledge of statutory compliances is required to minimize the risk associated with the noncompliance of statutory requirements.
Some risks of non-compliance are outlined below:
- Penal actions and financial losses to the organization.
- Loss of reputation and business integrity.
- Customer loyalty is heavily impacted.
Few examples of statutory compliance required from companies:
With Minimum wages Act coming in, organizations have to fix minimum wages for both unskilled and skilled workers, which should not only guarantee money for bare minimum survival requirements of workers but also should take care of education, medical requirements, and some level of comfort of workers.
Every employer who is paying salary to employees has to deduct TDS under section 192 of the Income tax Act, 1961, if the salary is more than maximum amount exempt from tax.
ESI fund, maintained by ESIC is applicable to employees earning Rs. 21,000 or less per month to provide the cash and medical benefits to them and their families.
PF is a compulsory contributory fund for the future of employees after their retirement or for their dependents in case of their early death.
There are many regulations like the above examples like PT, gratuity etc. In today’s competitive and legal business it is challenging for employers to manage statutory compliance without a good payroll software or a payroll management service or a brilliant combination of both.
Payroll Management service:
A risk free solution of being non-compliant is outsourcing your payroll and statutory compliance management to a professional payroll vendor who can deliver 100% error free reports and results on time with the assistance of technology (Payroll software).
Organizations can embrace Payroll management services who are Statutory compliance experts, whose main focus is to help organization remain 100% compliant with the ever – changing regulatory environment.
They have a much deeper understanding of the regulatory setting and provide specialized services to organizations. They streamline the process right from the day to day maintenance of prescribed registers and documents to the year-end calculations and filings along with reports.
Read more on needs for payroll management services outsourced.
In the present business scenario, a lot of companies have started to pay close attention to compliance management and have recognized the risk as well as the rewards of being fully compliant.
Compliance is not a one-time event. Organizations need to take a proactive approach and reengineer their compliance programs to make them more efficient and effective so that they can concentrate on their core offerings.
Payroll management service certainly takes the load off organizations back by offering them expertise on the rules and regulations required for a business to follow. This enables the company to achieve their goals smoothly.
There are wide array of benefits that has convinced thousands of companies to switch to outsourcing payroll and statutory compliance solution.
So what are you waiting for? Look for a good payroll and compliance outsourcing firm, and get started today!!!