What Is Payroll Outsourcing Service?
 All About Payroll Outsourcing: How, Why and What?
What is Payroll Outsourcing?
Payroll is generally processed in-house either manually or with the help of payroll software. Payroll outsourcing is getting this task done thru an external service provider. Tax print is the service provider that can take care of your payroll processing needs.
What is the scope of work under Payroll Outsourcing?
Every payroll outsourcing assignment involves month-to-month calculation of salary, TDS working, computation of legal dues for PF, ESIC, Professional tax etc. At the end of payroll processing each employee needs to be given payslip and accounts department need to be given salary register, legal payment sheet and several MIS reports. Periodical legal reports are also taken care by the payroll processor e.g. Half Yearly ESIC forms, Quarterly eTDS Statements, Yearly PF forms etc.
Apart from the above, some additional tasks can be performed by payroll processor e.g. reimbursement management, scrutiny of investments proofs, liaison with PF / ESIC authorities for various forms submissions etc.
When signing a contract for payroll processing, the scope of work is mutually agreed between the company and the payroll processor.
Why should one outsource Payroll?
There are several benefits of outsourcing your payroll:
- Reduce Costs: The direct costs of processing payroll can be greatly reduced by working with a payroll provider. As per a new report Tata Steel cut its payroll processing cost by 20%. Cost saved include direct cost of employee working on Payroll, software cost, software AMC etc.
- Avoid Penalties : Payroll processing involves legal compliance for TDS, PF, ESIC and P Tax. Incorrect calculations and delayed payments result in interest and penalties. In many instances, this cost immediately justifies outsourcing payroll.
- Reliability and Continuity : You do not have to worry about losing the employee that does payroll processing and this is a great challenge faced by organistions in today's time of high staff attrition. Outsourcing ensures reliability and continuity.
- Free Up Time for Core Activities : Payroll processing is a time-consuming process. Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities.
- Leverage Outside Payroll Expertise : Most business Accounts /HR Managers don't have time to keep up with constantly changing regulations, TDS rates, and legal forms. By outsourcing payroll, business can take advantage of expertise of outsourcing firm.
- Automation of the Payroll Process : Because of outsourcing, the payroll process gets streamlined and to a maximum extent gets automated. The software used for payroll processing sends several standard reports to employees, accounts and the HR department, which forms a good basis of control as well.
Commonly asked questions:
Can work be assigned in the middle of year?
Yes. It is possible to give work in the middle of year. All previous months' data will be brought into the software by us to be able to generate yearly reports like Form 16 etc.
What if an employee has a query?
Self Service Module has a Post Query button wherein the employee can post the query. The support team will reply to the query within 1 (one) business day. This ensures complete confidentiality as the access to Query will be only thru employee Login and password. . In case, you do not opt for the Self Service Module, then the employee query can be sent to a dedicated email id.
The following are the details of the Payroll Outsourcing Service by Tax Print:
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