Payroll outsourcing is a concept where all payroll related work is handled by an external source. It helps to reduce costs and save time. Contacting an external party to handle the payroll activities reduces the pressure of hiring staff just for the purpose of managing payroll systems, purchasing software and staying updated with the complicated tax regulations.
Outsourcing payroll management is becoming an important aspect of the Indian outsourcing market. Payroll outsourcing allows an organization to manage appropriate taxing and stay compliant, keep accurate records, reduces operating cost, and gives access to the latest technologies with dedicated payroll resources. Payroll outsourcing helps one to use an already established HRIS software ,this not only helps avoid confusion but also gives employees the chance to transparently view data related to them. Payroll outsourcing also helps to boost employee morale.
Payroll outsourcing increases business growth as employers constantly focus on their performance and in turn achieve a better growth rate. Using outsourcing smoothens the process as trained professionals work around the clock on managing payroll . While outsourcing one main concern is safety of data, businesses/ organizations need not worry as data is not only kept safe but is also not tampered with. It provides better compliance to state and federal laws as they require constant attention and outsourcing payroll enables one to do so.
We have various myths related to payroll and accounting. Let’s have a look at the myths below.
Payroll And Accounting Only Means Calculation Of Salaries
A common myth about payroll and accounting is that it only involves calculation of salaries. It is a necessary workplace function for employees to receive their salaries and compensation. Payroll management is an administrative function that involves human resource, and accounting procedures. It combines every aspect of work like time and attendance, incentives, bonuses, etc. Thus it can be said that payroll accounting is not limited only to salary calculation.
Anyone Can Process The Payroll
The process of payroll and accounting involves a large volume of data, it is important to assign the organization’s payroll in safe hands. The process involves a thorough background check on the employee who is going to do the payroll, functional and behavioral skills are important to perform activities related to payroll. After selecting the appropriate candidate organizations sign a confidentiality agreement that prevents the candidate from leaking the payroll data as a breach of data can lead to many indirect costs like a competitor getting to know confidential details about the organization.
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Setting Up Payroll And Accounting Is A One Time Process
Once the setup is created it doesn’t mean that everything is in control. A payroll and accounting process is a continuous evaluation. It involves tasks such as data entry and re-entry and also the errors associated with calculations. Thus, it is not a one- time process.
Payroll and Accounting Do Not Enhance Employee Experience
One of the biggest responsibilities of payroll and accounting is to enhance employee experience. It has a direct relation with happiness, productivity, and goodwill for the organization. It involves accurate payments of salaries that reinforce employee confidence and makes them creditworthy. Having an employee self-service portal reduces questions and answers, and provides access to data and creates a culture of transparency.
In-House, Payroll And Accounting Is Easy And Cheap
A common myth when it comes to payroll accounting. Running an in-house payroll system means that the organization requires an upgraded payroll system, and requires IT support to handle accounting. Thus, it can be said that it is not easy and cheap to have an in-house payroll and accounting system.
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Only Large Organizations Need Payroll And Accounting
It is not true that only large organizations require payroll and accounting systems. Small companies can also gain benefits from payroll and accounting as they have technology, cloud based platforms and reporting capabilities. With outsourcing payroll management they can also have professionals that can help them with things like tax payments, and direct deposits. It is not the size of the company that counts ,for an organization to have payroll and accounting systems.
Sending Financial Details To An Outsourced Accounting Firm Is Not Secure For The Organization
Most companies get worried while sending financial details to an outsourcing firm because they think that it is not secure for the organization. It is a belief that sharing financial documents is a risk as a security breach of data can happen. It refers to the mindset that there is no surety when it comes to safety and accuracy. On the other hand outsourcing your Payroll and accounting ensures that there is a proper quality check on safety of data and fraud. Since its outsourcing of data to an agency, it’s the agency that will be accountable for accuracy.
At Husys as an ISO Certified and NSE Listed company, we have secured setup processes and procedures to keep the clients data secured as a consulting service provider. Do Check how secure your data is, if you have outsourced your process to someone and you can connect with us in case looking for any support regarding the payroll and any HR related issues or can write to us at firstname.lastname@example.org.