Functions of outsource payroll company

by Ruby Smith Student

Payroll is one of the most important and at the same time the most tedious job for any organization that need to be performed month to month. Human resource of any organization is considered one of the best and most productive resources. And payroll is one way to tell the employees of an organization that how important they are to organization. Wrong calculation in the payroll might decrease the morale of an employee. Payroll process is responsible for that every employee gets correct, on time and accurately paid on time. As stated before it is not an easy job and only person with correct training and knowledge are being able to calculate it. But sometimes especially small and medium size organizations will have neither resources nor time to train these people for calculating payroll. This is when the services of outsource payroll is considered.

Outsource payroll means that a third party is being asked to perform the payroll function of an organization. But before company can start their work, a complete set of documents and sometimes the available resources are given to the outsource firm. The relationship between both the parties is stated as partnership. Before the commencement of the work, like any other partnership, some set of rules and regulations, terms and conditions are being stated. And mostly both parties try to legalize these norms, this also help to build a trust between both the parties.

Functions perform by the outsource company:

1.       Calculation of salaries and wages: This is the primary function for the payroll service providers. Employee’s salaries and wages are being calculated as per company’s policies like according to the hours of work they have finished or the completion of the project. Generally it is a time consuming job and required skills person. Hence bringing third party aboard a company can save lot of time and resources.

2.       Taxes: Another responsibility that has been handed over to outsource firm is calculation of company’s taxes. It is very crucial task and single and small mistake in the process, will create big negative impact for the company. Sometimes it can shake the market value also and monetary fines can also be charged. All payroll service providers do not provide calculation of taxes services.

3.       Making record of employees: Another function performed by the outsource company, is to keep the record of the companies employees, who are leaving and who are recruited recently. Newly recruited are on permanent basis or on temporary basis. All these records are being managed by the outsource company as they are responsible for calculating their salaries as per companies rules for new employees. What will the benefits they will get? For an employee who is leaving the company what are benefits in terms monetary he is entitled to.

4.       Pay Slips: Employees are very curious to know about the amount they have get how they reached to it, what are the reasons that their salaries are being cut down. Distribution of pay slips is also a function of the outsource company. Pay slips can distributed via e-mails or through bank records.

5.       Technology enhancement: Another function of an outsource company is to update themselves not only in terms of technology but other also. Like a new norm is being added by the tax department or new law is passed by the government, on how salaries need to be calculated. And last technology enhancement, what are the latest updates in the software that they are using to calculate the payroll.

6.       Professionals no mistake: it is more like a responsibility that they commit no mistakes. It is always been said that hiring outsource payroll means hiring a professional. Hence it become responsibility of the company their work, procedures and even the records should not contain any mistakes. Professional like Ayers Outsourced Payroll Solutions who have the experience of more than 15 years and other companies with experience is considered to be best option.

Hiring a payroll service provider is a smart move made by any organization. They help you save money and time. But another advantage of these services is that paper trial. They keep the records of every penny and these records are very useful at the time of audit as they provide transparency in the records.

 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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