Benefits of Outsourcing payroll management

Home Benefits of Outsourcing payroll management
19
Nov
By: Admin

Outsourcing payroll management can leave you with more time at your disposal for more important tasks. All that time spent on manual data entry, verification and cross-verification can be put to better use by choosing to outsource payroll management process. These make your life simpler, ease your tasks, and free up your working memory too and allow you to concentrate on other important tasks..

Let’s look at the ways of how outsourcing payroll process can benefit you.

  1. Minimise errors

    2. You don’t want to be making mistakes with paychecks. Payroll errors could be one of the prime causes of dissatisfaction with one’s organisation. While excel sheets and calculators are better at doing basic calculations, outsourcing payroll is a lot more efficient and reliable when it comes to calculating gross salary, deductions based on statutory compliances, tax deductions etc. Without manual data entry there is a lesser risk of making errors.

  2. Save Cost

    3. By avoiding expensive errors in payroll, you are obviously saving money. Think about all the savings from not paying ghost employees or even avoiding duplication of payments.Being cost-efficient helps you make the right decision.

  3. Ensure Security

    4. Payroll data is confidential information and you don’t want it to be easily accessible to all. Paperworkand Spreadsheets cannot help you much in that regard.

  4. Easy reporting

    5. All the information that you needed is now available with just a few clicks. There is no need to go through manual files to assemble all the data you need in a report. With reports on overtime, wage parity, attendance and leave reports and much more, you can take better and informed decisions.

  5. Being statutory compliant

    6. Time-consuming processes like monthly tax calculations, related deductions, filing statutory remittances like PF, PT, ESI etc. can be taken care of and is no need to manually keep track of them. You can feel confident about tax filing with the government

  6. Employee self-service

    7. Allow employees to take charge of their personal information available with their organisation. Employees can view their payslips, deductions, tax declarations, leave and attendance data and so much more. This will ensure there are lesser knocks on the payroll manager’s door and even fewer emails in his/her inbox thereby. Onboarding process can also be made easier by giving employees access to upload all relevant documents which can then be verified by an HR manager online. Reduced paperwork is a boon for the HR department.

  7. Audit-ready

    8. Have all payroll related information at your fingertips. Be compliant at all times so that you don’t have to go scrambling for data every time there is an audit. Gone are the days when you had to go through piles of files to check for payroll information requested by your auditor.

  8. Paycheck automation

    9. Once the inputs are verified, pay computations happen in the system where gross pay and net pay is generated. The next step is to create the bank file containing the list of employees with their respective net pays. The system should have the ability to create an automated file transfer protocol to sync up with the bank's systems to transfer data automatically, from where the same is transferred to employee's bank accounts directly without any manual intervention.

  9. Auto payslips

    10. Post the salary credit in the employee bank accounts; the next step is to automatically and securely receive their payslips in their email accounts. This is an integral part of communication to ensure employees know what and how much is paid to them

  10. Automated accounting

    11. While most software generates the accounting entries to record the payroll costs in the books of accounts, the automated solution should be able to post the entries in the company's accounting systems automatically. Data so posted must match the data with the month's pay register.

  11. Employee Self Service (ESS) / Manager Self Service (MSS)

    12. One of the most liked portals in any software is the ESS or MSS portals. It is a personalized portal of each employee within the payroll application. They will be able to view their profile, personal data, payslips, tax forms, and any of their information. The portals can be linked to their leave and attendance systems to view their leave balances or apply for leaves or overtime. The requests will get automatically routed to their respective managers for action. The entire flow of transactions is captured and recorded in the process.

    Similarly, income tax declarations, tax proofs, expense / medical claims, etc. can be submitted by an employee in the portal. The Manager can view it to approve it, post which it gets routed as an input to payroll for further processing.