CFO Service

Payroll Services in India: Virtual CFO Services

Payroll is a vital part of any organization. Such department plays various roles in an organization. In this article we shall discuss a little about Payroll services in India.

What is meant by Payroll Services?

Payroll services refer to company’s list of employees. The term is mainly concerned with the total amount that company pays to its employees and it also includes records of employee’s salary/wages/bonus and withheld taxes.

It plays a very important role in a company in terms of money paid to employees. From another perspective, payroll is considered critical as it affects the net income of the company because they are subject to regulations made under the law whereas from the perspective of human resources, it is considered critical because employees are sensitive to payroll errors. The main purpose of the payroll department^[1] is to ensure that the entire employees are accurately and timely paid with deductions.

Payroll services provide an attractive & valuable alternative to in-house processing. It is less expensive and simple to pay for your employees, filing of taxes. In-house processing of payroll services is considered more cost-effective than outsourcing. They are quite protective in relation to wages information.

Payroll services take human resources management to a higher level. Payroll services can be outsourced.

Payroll services that can be obtained by outsourcing payroll services

Here are the following payroll services in India that can be obtained by outsourcing payroll services:

• It provides Employee Self Service by providing online technology to employees to view their salary slip, submit IT declaration, decide FBP, submit a query.
• Online Access to View and Print Salary Slip.
• Automated Attendance.
• Web-based Leave Solution.
• Reimbursement Management
• Replace Excel in Web-based Processing of Payroll.

When an organization doesn’t want to manage its payroll processes in-house, then they can opt payroll outsourcing for efficient payroll administration.

Check list for an effective E-payroll system

The following is the check list for effective payroll system:

• Company Documents– Documents like certificate of registration, electronic challan cum return document and other company documents are required to set up payroll system.
• Classification of employees– classify employees on the basis of contractors, permanent employees, freelances, interns etc. Schedule payments accordingly.
• Update terms of compensation– In order to keep a tab on employee hours, office timings etc. company compensation terms have to be updated in the payroll system.

Benefits of Outsourcing Payroll Services

Here are the benefits of outsourcing payroll management:

• Fast turnaround.
• Reduced investment in IT infrastructure.
• For the entire life-cycle of the employee in a company from the recruitment day, full assistance.
• Strict adherence to compliance and statutory requirements.
• Streamlining of all payroll processes.
• Resource deployment.
• Error-free reports and documentation.
• Business intelligence that can help top management for their strategic initiatives.
• Low-risk of penalties due to non-compliance.
• Speedy resolution of employee issues.

Conclusion

Managing payroll services in the organization can be proved very difficult because of stiff penalties for non-compliance with statutory requirements and other related issues. Companies that do their own payroll processing find that it is an expensive and difficult process. With the help of payroll services, the organization finds its simple way of paying employees’ salaries and filing taxes and performing other activities associated with payroll administration.

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