Globally, outsourcing has been on a steady rise and the reasons behind it are quite clear. With the competition being so fierce, companies need to save expenses wherever they can. Outsourcing functions like payroll management have proven to have significant savings for companies as compared to having them done in-house.
Many studies have revealed that companies who retain functions like payroll and compliance in-house typically spend more than those who outsource these services. Thus these costs have a significant impact on the overall profitability for small and medium sized companies, where budgets need to be planned out and allocated even more judiciously.
Even the most meticulous and experienced professionals find that payroll can be a headache. Taking care of tax filing, cautious about the penalties, and now we are talking a full-blown financially-induced migraine. For many small businesses, payroll services offer an attractive and valuable alternative to in-house processing. When chosen correctly, they provide a less expensive, simpler means of paying your employees, filing your taxes, and performing a host of other duties these companies’ sales reps can’t wait to tell you about.
Indian companies can very well benefit by following this international trend and outsourcing their payroll needs. Most companies, if not all, have tight finances and while hiring payroll and compliance team in-house might seem to make more sense, it has proven to be more expensive and less effective than outsourcing to the experts. Outsourcing companies have the expertise and resources to take on the onus of acquiring and retaining relevant skill sets, relevant technology and staying up to date with ever changing legal norms and regulations.
For small businesses, payroll outsourcing is the most cost effective ways of running their staff payroll. There are so many experts in the market that compete with each other for a share of the market, they invariably ensure that their skills and costs are attractive. In the end it is the customer who benefits the most.
Why Indian companies should outsource their payroll
- Outsourcing Payroll is important because payroll and payroll taxes considerably affect the net income of most companies.
- Companies need to be careful with the payroll process as they are subject to laws and regulations inclusive of employee benefits and overhead costs.
- It involves tedious amounts of efforts and yet allows little margin for error considering it is not most companies area of expertise.
- For smaller companies payroll outsourcing is a lucrative deal. They do not have to maintain a financial department in their business or employ staff. It saves a lot on salaries, maintaining office space, etc.
- Save time and efforts by leveraging an outsourcing company’s expertise and speciality in payroll outsourcing take over their end-to-end payroll services. It is beneficial for both the small business owner and the outsourcing company as they both have a lot to gain.
However, choosing poorly can leave perpetually frustrated incur heavy losses. It is wise to select the right payroll partner who understands your needs and provides customised services accordingly.
PaySquare is a leading Payroll outsourcing service provider that helps small businesses India manage it all – From consolidating HR/Finance and employee inputs to processing of Payroll, providing the respective outputs and managing statutory filings.
Managing complex payroll across locations- Ever changing regulations and policies across different categories of employees made it difficult to process payroll efficiently.