Payroll Outsourcing post COVID-19 Pandemic

Payroll Outsourcing Services in India

Covid-19 Pandemic has affected all type of business set ups whether small or big. Most of the organizations are still struggling with the new normal. Companies which were process oriented and well-planned had scope of resetting themselves faster then other. Being updated with the cloud-based systems, using  SaaS based solutions, running the payroll with the use of experts or handing over the payroll work to outsourcing partners is something which is adopted by many successful organizations.

Entrepreneurs with growth mindset understand the value of time. Making the right decision at the right time is the first step towards reaching business success. There have been many circumstances during covid-19 pandemic where organizations got stuck due to bad decision making, unreliable resources and manual work processes. Payroll has become most important aspect of an organization during Covid-19 pandemic because responsibility of disbursing salaries on time has become a headache. At the end salary is the biggest motivation for employees when everything around us is negative. To maintain discipline in payroll process it’s always best to appoint external partner for payroll processing as during remote working trend, it is very difficult for an organization to micro manage the payroll.

Payroll is the term heard by all but understood by very few. Being the most significant activity of an organization, it’s not an easy task also to understand payroll. The process of payroll processing in India comprises of enormous sub tasks and check lists. The monthly compensation and wages disbursed have several elements structured together which are part of payroll activities. In between ‘gross’ and ‘net’ salary there are various components which are to be worked on to manage payroll activities of an organization.

What is Payroll?

Payroll can be defined as the process of paying compensation to the employees. Mostly, this compensation is paid on monthly basis by the employer, if not, then it is defined in the payroll policy of an organization. Payroll Process includes collecting the list of employees to be paid, tracking the hours worked, calculating the employee’s pay, distributing the salary on time, and recording the payroll expense.

In order to get everything on place, there’s tons of background operational work involved because payroll is more than just about calculating salaries. It’s a tangled set of process which requires different set of people to work simultaneously. But all these complexities can be managed effortlessly if an organization takes decision to outsource the payroll management.

Payroll Outsourcing

Payroll is the most challenging task of Human Resource department, which needs accuracy and must meet the deadline. When any organization decides to hand over this essential part of business in the external expert hands, it is called outsourcing the payroll service. Giving the payroll task to a professional outsourcing company can save time, money and compliance headaches.

This is why an increasing number of organizations and SME’s are turning over their payroll function to professional providers who offer specialized, fully managed payroll services.

 A few key benefits of outsourcing the payroll process:

• Reduce risk of human error and mistakes
• Accuracy
• Lower cost
• Experience the latest technology for your business
• Save time

A few of the key elements of payroll processing taken care by external payroll experts are:

• Leave & Attendance Management: Payroll process has over all three stages; pre-payroll activities, payroll process and post-payroll activities. During the first phase, data is gathered to run the payroll process. Leave and attendance data plays a very vital role in running payroll. It is the information about leaves of all employees and daily work hours of each employee. It is very difficult to manage the detailed data without expertise. Professional outsourcing companies follow processes which brings accuracy in leave and attendance management.
• Payroll Automation: Payroll automation is the process to monitor, analyse and improve the payroll processing via automation systems or tools. Each activity related to payroll is managed under one roof and every update is visible on real time basis on single centralized platform. Payroll automation simplifies the payroll work.

A view on Cloud Based Payroll Solutions:

Cloud based payroll solutions are software which can be accessed from anywhere, any device and any time. It’s a cloud-based technology and mostly provide mobile based access also. There is no installation required, and data and functionality is available upon login, accessible from anywhere, and natural disasters like floods or fires have limited to no impact on accessibility.

Payroll in the cloud reduces IT-related problems with maintaining, upgrading, or adding security.  These functions are virtually unnecessary because the cloud provider takes care of most of them for you.  Companies and their employees can access payroll data easily and quickly on desktops, tablets or mobile devices.

A few benefits of Cloud Based Payroll Solutions:

• Flexible
• Scalable
• Employee friendly
• Pocket Friendly
• Improved Coordination
• Better Security