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  • 8 REASONS TO OUTSOURCE YOUR PAYROLL
Article:

8 Reasons to Outsource Your Payroll

17 February 2022

In today's ever-changing business landscape, companies need to focus on core activities, strategy, decision–making, and other important factors for their success. This leaves little room for effective focus on ancillary – but essential activities like payroll management. Payroll management is a critical area of a business that requires significant effort and resources. A robust payroll system is a crucial component of human resources which is the driving force of a business's operations. This is one of those key functions where a business needs to be meticulous, timely and accurate, and getting something wrong could have legal and reputational consequences.

Today, most businesses opt to outsource their payroll services to have more flexibility, enabling them to focus on their core business operations. A robust payroll setup extends beyond just calculating and paying employees' salaries every month. Some of the key activities involved in the setup and administering of payroll services include:

  • Understanding the legislation governing labour practices and following the developments on it
  • Implementing a software system that automates the monthly computation of employee payroll and benefits in line with labour laws and provides customised reports as per the company's requirements.
  • Implementing internal controls on employee reimbursement such as company related expenses, per-diem allowances, etc.
  • Reconciliation of payroll with the accounts and financial records
  • Maintaining a database of employee details that adheres to data privacy and protection regulations
  • Setting up a reliable payment system with a trusted bank to ensure timely payment on the pay date
  • Computation and filing of applicable statutory taxes and employer contributions.
  • Automation of final settlement calculation
  • System integrated Over Time calculation

Payroll solution providers in today's business world offer cutting edge technology solutions with a huge emphasis on data security and privacy. A reputed service provider understands the importance of innovation in this space and constantly invests in technologies that offer the best economical advantage to their client – the business. The benefits of the decision to outsource the payroll function with a trusted service provider are numerous:

  • More time available for attention on core business needs.
  • Time saved from errors incurred through an unstructured payroll system
  • Save on the time spent in updating payroll systems with legislation changes
  • Time saved on tedious paperwork and filing
  • Bespoke reports and output files tailored for your needs
  • Services provided by seasoned professionals with experience across industries
  • Ensured compliance with up-to-date legislation.
  • Precise computations on employee remuneration and other benefit entitlements
  • Get a streamlined payroll software to automate your payroll process
  • Usage of systems with enhanced security and backup for protection of sensitive data       
  • Receive fully digitised software solutions customised for complex business needs
  • Save on resources better directed to core operations
  • Focus more on tasks that generate value for the company
  • Get more meaningful data reported to help with decision making
  • Through the integration of data using custom software make management of various  aspects of payroll more convenient and economical
  • Enable employees to have more visibility on their payroll using innovative services as a customised self-service  portal from the service provider
  • Capable of integrating with WORKDAY, SAP, ORACLE and Microsoft applications
  • System generated E-banking file and GL posting process
  • Integrated solution for expense claim management and leave management system
  • Saving on business overheads associated with in-house payroll system and team
  • Minimise any additional costs as a result of internal administrative errors
  • Avoid the risk of fines and legal challenges resulting from non-compliance with legislation
  • Reduced risk of employee fraudulence
  • Transfer of burden to meet the timely payments to employees.
  • Minimise the need to deal with employee payroll queries.
  • Better control of the process with little effort
  • Exchange of information by a secured SharePoint portal
  • High-end data server equipped with most up-to-date data configuration
  • Enhanced trust over data handling through compliance and regulations under various Data Privacy and Protection laws.