Payroll outsourcing is an important time saving administration process every company should consider and whether you are a small or larger organisation, we can tailor our payroll service to suit your individual requirements and provide a well-managed payroll solution.
All Statutory deductions such as PF and ESI shall be taken care by us, including generation of Challan for the payment of such statutory payments, submission of Cheques to the bank and handover of acknowledged challan to the client, if opted.
Outsourcing payroll is a smart idea for any business owner that doesn't have the time or expertise to perform complex tax calculations. Here are the benefits of outsourcing payroll:
Our client was on a fast growth path and had 30 employees in the beginning stage. The compensation structure of the company included normal monthly variable pay along with a little tax friendly allowances. The HR department found it difficult to cope with routine employee queries which, most of time, were of a similar nature. Employees were not informed about their estimated tax liability. When taxes were deducted at source it resulted in employee discontent. Further, there was no system in place to track previous employer's salary information in the case of employees who joined during the financial year from another company. This resulted in incorrect tax deduction from salaries. Salaries were being disbursed well after the due date. The challenge was to provide orderly and efficient payroll processing – and to restore employees respect and trust in the HR department.
Before we came on board, the director and HR had decided that the solution to this problem was to standardize the payroll process. When we were consulted, we took a different view. Out of our experience, we requested the client to change the structure of payroll process and salary structure. They were a little sceptical, but agreed to this critical exercise. He was generously rewarded for his patience. When we presented the new tax saving structure, he could see that just standardization would not effectively make an impact on the root cause of the problem. What was actually needed was trained people who would execute the process with full responsibility, and treat employees as an internal client.
We circulated investment declaration sheets among employees to estimate their tax liability for the remaining part of the year. We calculated the tax liability with utmost accuracy and mailed each employee personally for their review and confirmation. There was a perceptible shift in the mood of the employees on being taken care of, which naturally, was reflected in their engagement levels at work.
Next, we fixed dates of disbursement of Fixed Salary and Variable Salary. Now, we release the fixed salary on last Friday of each month without any delay.
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