How To Choose Best Payroll Outsourcing Agency- Assure IT Services
Most of the small business owners who want to concentrate in building and establishing their businesses can save their time, worry as well as money by hiring PAYROLL OUTSOURCING AGENCY. Running a small business requires handling several responsibilities. The more you take responsibilities, the less efficient you will become. And less likely you are to increase the success and profitability of your company.
The majority of the SMALL BUSINESSES are under 25 employees, and this means that the owner has to be more productive by generating more sales,” says Randhir, the director of Assure IT Services. While assessing, whether or not you should choose PAYROLL Outsourcing Agency there are several questions to consider before you make a decision.
How much payroll outsourcing cost?
Costing depends upon the scope of work defined and the nos of employees. Scope of work would include monthly payroll processing, compliance management-PF/P.TAX./ESIS/Taxation returns filing. It also includes other activities like Full & Final settlement, Investment proof checking and auditing, Form 16 generation, Default notice management received from the Income tax department etc. These activities are conducted on monthly, quarterly and yearly basis.
The clients prefer a break up on the costing depending on the activity such as:
- What would be the cost for Investment proof auditing.
- Which all activities have been conducted in a year?
- In case of start up with less than 20 employees the client may charge a fixed amount per month.
In case of companies with an substantial employee base may charge per employee per month basis. This is just a basic monthly payroll processing quote however; the rest of the activities like employee F&F, Investment auditing are charged separately.
Which seems to be a good option, In-house or outsourcing PAYROLL?
The general trend seen in the last few years is more towards Payroll outsourcing agency. Payroll is a once in a month activity in every organization but; it requires joint efforts of more than 2 people from different departments coordinating with each other.
For a start up/Small /Midsize company using the 2 resources for single activity is a costly affair and for a large organization with a PAN India presence will require more than 2 resources in both departments (HR/Finance) to coordinate between the Head Office and Branches.
Hence; the best solutions seen is to outsource the activity to a single entity and appointment a single resource to coordinate with the third party. The third party takes care of all activities starting from payroll to taxation and compliance. Compliance is getting tougher day by day, companies are paying heavy penalties in terms of late tax returns filing, short tax deduction, incorrect calculations etc.
Replying the default notices and other compliance queries is taking up the productive time. Companies want their employees to focus on the core activities hence; outsourcing payroll agency can be great help.
Is my employee data secure when I OUTSOURCE PAYROLL?
Employee data security is an important aspect of payroll outsourcing. Data security can be of 2 kinds a) Having a robust data backup systems & b) Non-disclosure of client employee information to a third party. In case of a sudden failure of internal systems data can be restore from other locations within no time.
Data backups are broadly classified as monthly backups/ quarterly / yearly backups. Clients are suppose to sign a non-disclosure agreement with the payroll outsourcing agency which will prevent them from disclosing any employee information without prior permission.
How to choose right payroll outsourcing agency?
Payroll processing as an activity comprises of 2 key aspects which is Processing of monthly payroll & Auditing of processed data thereby maintaining accuracy. Before choosing a payroll outsourcing agency; one must understand the practices implemented by the partner to process and audit the data at the master level as well as their calculation level.
A payroll outsourcing agency after auditing if the client comes across errors in the processed data then later on he would prefer to move to another partner or go for the in-house processing option.
- Understanding the payroll process flow adopted by the partner. How does the partner process payroll for its existing clients.
- Internal audit practices built by the partner to maintain the accuracy in data.
- Knowledge on the subject matter. Is he partner updated with the changes happening in statutory compliance? E.g taxation, investment, P.F.,P.TAX etc.
- Customized plan of action designed by the partner for the client in order to maintain the deadline of the payout date.
How much employee strength do you need to OUTSOURCE PAYROLL?
Today companies prefer to have their systems in place from day 1 itself. Every organization however big or small in a competitive environment thinks alike. Assignments get broadly classified under core and non-core activities. Any assignment that adds to the productivity of the company or the employee may be internally managed.
Assignments which are routine and mandatory but do not add to the company’s productivity in terms profit or any other format and also demand additional resources to manage are preferred to be outsourced. The employee strength in the company is not anymore a deciding factor. The HR / Finance Head in an organization has to decide whether he should invest 2-3 days in a month on a non-core activity of processing payroll or invest the same time on a core activity within the organization.
About Assure IT Services
Assure IT Services is a PAYROLL PROCESSING company in Mumbai, offering payroll services to start-ups and mid-sized companies in India. The company offers 360 degree payroll management outsourcing solutions with the state-of-the-art software and a team that is well-versed in payroll services.
Randhir Nagvenkar is a director of Assure IT Services. He is a management graduate and has played multiple roles, from product marketing to implementation at the client side. Over the years he has gathered skills and knowledge in executing and managing large scale payroll implementation projects in various industry verticals.
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