Payroll in some businesses is a significant company expense. It is also subject to various laws and regulations. The best practice is that businesses must make sure payroll process is 100% accurate and reliable.
In the recent years, there are still businesses who rely totally on a single staff to handle all the payroll of their companies. This has placed themselves in a highly vulnerable position when the dedicated person responsible for the payroll work goes on leaves or is absent. To add to the problem, payroll work usually would have to happen (or re-occur) at least once a month. For some companies, it may have to happen once every two week, or even one time per week.
Nowadays many of these businesses have started to consider payroll outsourcing to local professional services who can handle such jobs in much simpler ways. The benefits when you are able to outsource to payroll services is that you can focus better on your core business during the days. Besides getting the experts to work on your employees payroll, you may simply even have reduced cost and risks.
Let’s consider what items are included in the processing of payroll:
- Collection of input data and periodic changes.
- Handling of joiners, leavers or any changes to employee remuneration related, or not related e.g. hours, benefits, etc.
- Management of the payroll.
- Calculation of employee salaries.
- Arrangement of net salary payments to the bank accounts of each individual.
- Providing computer printed payslips, payroll analysis reports, statutory reports and journal reports for each payroll run.
- Sending individual monthly payslips electronically that must be encrypted by a password for confidentiality purpose.
- Submission of the monthly statutory reports on your behalf and management of the settlement of any resultant dues.
- Ensuring the compliance of the year end payroll reporting procedures.
When considering who to outsource your payroll, you should look into providers who have the characteristics in pricing, services, and reputation. Pricing is needless to say, as all business whenever possible would try their best to save cost.
Payroll data is usually considered extremely sensitive data. Your best bet is to always look for payroll providers who have high levels of data security as well as high reliability. This ensures your important data is always in the safe hands. The added benefits you should look for from a provider is its capability to regulatory compliance.
Lastly, you can consider whether the provider can offer complementary services such as local company incorporation, security service, accounting service, tax service, and more through cloud-based tools such as Xero bookkeeping software.