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As organizations chart their growth plans, they decide to outsource several of their functions. One of the functions that definitely makes sense to be outsourced is payroll. Still, some firms hesitate to outsource because they have different perceptions about it. This is partly due to several myths related to outsourcing payroll.
With this post, I intend to cover some of these myths and their corresponding facts to make your decision of investing in an outsourcing firm easier :
Myth #1 : Handling payroll in-house is cheaper as compared to outsourcing
Fact #1 : Handling payroll in-house can be more expensive & tedious
While handling in-house payroll you have to consider other costs such as recruitment cost, capital expenditure, Infrastructure costs, software acquisition cost, operational expenditure & employee development costs. As a result of this, having your own payroll team ends up being more expensive than partnering with a payroll outsourcing company.
Myth #2 : Setting up payroll is a one time process!
Fact #2 : It's an ongoing process
Business owners believe that setting up a new payroll system in-house won’t cause a major upheaval because it’s a one time process. Whereas the reality is, there is much more to do after setting the payroll which is often missed out. There are few updations, law amendments and calculations to be made, which may be weekly, monthly, quarterly as per the payroll schedule. Hence it is very much an ongoing process
Myth #3 : Payroll only refers to salary calculation
Fact #3 : Payroll processing involves much more than just salary calculation
Managing payroll in-house does not mean only calculating employee salaries. There are other critical tasks involved in handling payroll process of an organization. Handling employee information like leave data, attendance data, computing accurate tax based on declarations, company benefits, health insurance and other withholdings are some of them. Payroll professionals know how to streamline these processes and handle everything to save you a big headache.
Myth #4 : Any HR person can do the payroll processing
Fact #4 : Only a responsible Payroll Expert can manage payroll process effectively.
HR professionals already face stiff deadlines and adding to this, mistakes like data inaccuracy, erroneous calculations can hamper the overall time and productivity of employees. Whereas experienced payroll experts allow you to focus on your other business activities without having to worry about payroll management.
Myth #5: Payroll processing is only good for larger businesses
Fact #5 : Every business can benefit from payroll outsourcing.
Many businesses choose not to outsource payroll services considering it as an extra cost. They see these services as something that are only beneficial to medium and large scale businesses in terms of cost and efficiency. But in reality, even small businesses have a lot to benefit from outsourcing. Prime among the benefits is that company resources can be focused on their core HR activities rather than time consuming admin tasks.
With these myths out of the way, it’s easier to appreciate how your business can benefit from outsourcing payroll needs.
At Finsmart Solutions, we have been working with clients in streamlining their payroll function. We offer end-to-end payroll solutions including payroll compliances. Feel free to reach me and I will be happy to walk you through how your organization can benefit from payroll outsourcing
+91-7798186237 | +91-9689939368
Electronica Finsmart Solutions Pvt. Ltd.