Businesses have to constantly grow; keep their clients as well as their employees constantly engaged, and take care of so many secondary things. Effectively, companies want their employees to stay focused on more demanding roles. One of the issues faced by the companies is payroll processing when their employees do not possess the necessary skills to deliver to this task. Thus, it has become one of the best practices in the industry to outsource payroll. Payroll outsourcing is a business practice where companies transpose their payroll administration to an external third-party. The contacted party can aid in monthly processing payroll, withholding taxes, preparing returns to government agencies, etc. Outsourcing helps in increasing the efficiency of the overall business by handing over the job to experienced and expert payroll providers and is becoming a viable option for many business organizations by replacing in-house processing of payroll.
Why to Outsource Payroll?
It is extremely important for businesses to acclimatize themselves to increasing requirements of payroll obligations. Often the in-house administration is unequipped with the required knowledge because of which the departments like HR feel overloaded and the business faces certain shortcomings. These might include delays in making payments to the employees, incurring fines due to compliance issues, etc. Consequently, companies rely on outsourcing which gives them security against a risky administration process of payroll processing. Thus, there are more timely payments and no misrepresentation of data in front of government agencies.
Advantages of Payroll Outsourcing:
Companies enjoy various advantages by choosing to outsource payroll. Some of them are as follows:
â€¢Centralize attention to other important tasks thereby increasing productivity.
â€¢Reduce operating costs by overcoming the fines incurred due to compliance matters, delays, etc.
â€¢Boost data security by outsourcing data to a cloud network
â€¢Direct Deposit provided to employees who find it inconvenient to visit banks
Cost of Payroll Outsourcing:
Companies might plan to outsource either few or all of their payroll administration to third-parties. Based on the number of services chosen like monthly payments to employees, filing returns, etc. companies are charged variable prices.
Another important factor in estimating prices is the number of employees. Most outsourcing companies charge a fixed cost with an added cost every additional employee.
Following are some payroll service providers in India:
â€¢HR Payroll Outsourcing: The Company prices are broken down into four major packages to cater to different organisational levels namely, Starter, Professional, Business, and Enterprise. Prices start from Rs.1999/- per month for Payroll Outsourcing
â€¢247HRM: 247HRM offers four different Payroll Software plans according to the needs of the organisation. These are Bronze (Rs. 999), Silver (Rs. 1999), Gold (Rs. 2499), and Ultimate Edition (Rs. 3999) for 30 employees each.
â€¢Keka: This is yet another company that offers Payroll Software services. The prices are Foundation (Rs. 2999), Strength (Rs. 3999), and Growth (Rs. 5999) plans for 50 employees each and charges additional amounts per employee increment.
â€¢Paybooks: Paybooks charges Rs. 1800 per 20 employees with an additional cost of Rs 50 per employee.
â€¢GreytHR: The Company provides payroll software services as follows. Bantam (Rs. 995), Welter (Rs. 1495), Super (Rs. 2495), and Cruiser (Rs. 4995) packages.
Article Source: http://www.bharatbhasha.com
Article Url: http://www.bharatbhasha.com/finance-and-business.php/492710
Article Added on Friday, January 26, 2018
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