Five Reasons Why Companies Outsource Their Payroll
Managing accounting, human resources, payroll, tax, and other financialresponsibilities at the same time is a complex & time consuming affair.
Many businesses still do all of these activities in-house, not realizing that
such routine administrative work is getting intricate by the day, and is a big
drain on their time.
Accounting, payroll & human resources are some of the most commonly
outsourced company functions. Here are the top 5 reasons why you should
outsource your payroll.
With so many rules, by-laws, provident fund percentages for different age
groups, 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. You must also be able to answer your
employee's queries about their payroll confidently and clearly.
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 a proper audit of your payroll
processing?
Payroll processing companies provide a wide array of reports that address
the most common reporting requirements. Such comprehensive reports may not be
possible with your in-house payroll software or may take a long time for your
IT staff to figure out or develop. You can quickly get the outsourcing company
to deliver specific & ad-hoc reports for your custom analysis.
Direct access to experts
Outsourcing companies are staffed with payroll experts who can answer your
employee's queries on the phone, and act as a single point of contact for your
employees.
They can also conduct standard or specialized training sessions for your
staff whenever there are changes to the CPF rules, taxation and your employee
benefit programs. Most payroll outsourcing companies can even come down to your
office to conduct in-house training sessions or have a hands-on consulting
session with the management & staff.
Cost savings
Outsourcing the monthly payroll processing often saves you a full
headcount. This resource can then help you in sales, customer services, or you
can simply enjoy cost savings. In fact, cost saving is a by product of payroll
outsourcing. Most companies outsource their payroll because of the hassle it
proves to be, not realizing that by outsourcing, they are actually going to
save costs in the long term.
Professional payroll processing
services
Payroll outsourcing companies provide basic to complex payroll
administration for businesses. They maintain individual payroll files for each
employee and compute all the salary and reimbursements on time. Printed or
electronic pay advices via the internet are delivered to each employee, and
annual bonus, increments etc. are processed with ease.
On top of this, the annual income statements required for tax purpose is
generated for each employee professionally, timely and with full
confidentiality. Such enhanced services ensure that HR professionals can focus
on real HR work like staff training & development or compensation planning.
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