Payroll management is one of the least favorite jobs in any business. Let’s discuss what gives it this reputation and then we shall see why business houses prefer to outsource payroll related activities to specialist organizations.
Unless your employees are financial experts with experience in accounting it is going to be a mammoth task to manage payroll work of even 20 employees. It not only involves the salary distribution and tracking but other stuff like taxation, PF, ESI, Medical, TDS, Insurance, Employee grievances, Leave records, other allowances etc. Minor errors on behalf of the accountant could prove to be the stumbling block for the company. Responsibility is tantamount to life and death situations.
Main reasons for Outsourcing Payroll Management : -
1. Cost: Big companies cannot afford to hire departments for taking care of this task. Especially in this economic slowdown it drags on your cost effectiveness.
2. Productivity: If you are using non specialized workers for payroll duties then they will do neither of the jobs properly. It will then eat into the productivity of your organization.
3. Accuracy: Minor errors on the part of your employees will cause severe repercussions in terms of employee satisfaction and government sanctions.With an outsourced agent you can demand monetary restitution that you can’t do with your own employees. A payroll service provider will
definitely make fewer errors.
4: Speed and Reliability: You don’t have to train new joiners and part time workers. You don’t have to worry when some accountant is on leave. A group of specialized people are expected to do even your most complex jobs with relative ease and speed as compared to your in-house staff.
5. Security and Insight: A good payroll management company will help you save on taxes using their insight and experience with the tax laws and their loopholes. You won’t have to double check on your employees working regarding financial matters.