HR Outsourcing is growing at a rapid pace in India with the Payroll Solutions Services also growing at an exponential rate simultaneously. India is steadily following the global trend of outsourcing payroll services to stay more focused on core business operations as compared to support functions.

Need to outsource payroll processing in India

India is a growing economy and land of startups. In today’s date, organizations want to invest their time and resources wisely in boosting their business rather than support functions such as payroll processing etc. Payroll is a complicated and protracted process involving a wide range of responsibilities. Many organizations especially SMEs increasingly prefer to outsource it to a third party service provider since it is comparatively easier and effective to handle payroll processing through a service provider.

Reasons why small and medium business should outsource the payroll process Some of the reasons why SMEs should outsource the payroll process are mentioned below:

Cost-effective

Outsourcing payroll services are comparatively cheaper than hiring a full-fledge department for its management. The money saved can be utilized for strengthening core operations and further business expansion. This strategic decision makes companies cash-rich and also empowers them to compete with their counterparts on equal grounds.

Access to technically advanced process at lower rates-

Third-party payroll services provides access to the latest technology and processes which is a tedious and costly affair. Besides, hiring a technically advanced team for managing these technical processes will add a further financial burden on the organization. Hence, outsourcing payroll services is a wise decision for companies as they can save a lot of money and also have access to the latest technology.

Higher accuracy and quality standards

The third-party outsourcing companies maintain a high level of accuracy and quality standards. They conduct training of accounting team members and hire a technically advanced workforce. There is a dedicated workforce for managing back-office operations and special account managers are appointed for payroll-related projects.

Employee-friendly process

The companies providing Payroll Management Services create an employee-friendly Human Resource Information System (HRIS) offering multiple benefits to employees. A systematic process is created to manage the complete payroll cycle including leaves, salary etc. HRIS offers following gains to HR & employees:

• Manage payroll reports
• Add new employees
• Delete employees
• Manage reporting and leaving time
• View and manage invoices
• Create communication channel between employees
• View payroll reports
• Create customized reports
• Access and update employee information
• Compensation reports
• Upload employee tax documents
• Maintain tax records
• Update employee handbooks and other HR documents
• Keep track of PTO (Paid Time Off)
• Maintain employee database & document records
• Maintain training records
• Employees can update information
• Employees can enroll for benefit plans

Peace of Mind

A professional payroll Service Company offers seamless and hassle-free management of the entire payroll process. The organization only needs to provide their basic information and payroll company provides them a customized plan to manage their entire process. With the growing demand and improvisation in current software, nowadays companies are offering a guarantee of error-free payroll and tax-filing payments and management on time through a safe and secure process. The process is automated and handled by a team of experts providing complete peace of mind to the HR manager or business owner. Everyone can focus on their strategic tasks and creating a profitable business empire without worrying about payroll management.

Avoid penalties

Payroll mistakes, tax miscalculations etc. not only creates huge discontent amongst employees, it also leads to penalties. Business owners or HR managers are not legal experts and it is quite likely they get caught in legal penalties and audits. No business would like to get entangles in such cases. The Professional payroll service providers stay abreast with the legal compliances and government rules & regulations and less likely to make any type of serious error as compared to in-house staff. In fact, good outsourced payroll providers also compute taxes, manage tax filings, payments and maintain records. They also stay abreast of federal, state, local, and industry-specific regulations and manage the entire process as per the legal compliances.

How payroll outsourcing does services help?

Companies are always at the risk of fraudulent activities specifically when the business is manages through different locations. Outsourcing payroll management to third party vendor with stringent security and safety clauses gives extra assurance and confidence to the companies regarding the maintenance of impeccable quality standards.

How safe is payroll management services?  

 Organizations are usually at high risk of data fraud, tampering of company records by employees, data theft etc. Either company needs to deploy expensive security firewalls and an expert team for its management or they can easily outsource these technical systems to the third-party for hassle-free