The payroll process plays a central role in every organization. A suitable and robust payroll system can keep many company problems at bay. It takes enormous effort and hard work from every employee for any company to become a successful venture. A timely payroll can be a factor that inspires the company employee to give their best performance to achieve company objectives. The company must treat their employees fairly and generously for their efforts. The timely processing of the salaries and bonuses is a way of paying back and increasing the company's trust.
Companies face many issues while processing the payroll. The payroll issues include delayed payments, incorrect tax calculations, payroll team attrition, keeping up with the changing rules and regulations applicable to the payroll, and others. However, outsourcing the company payroll brings many benefits to the company. Let's check some of the advantages:
When processing the payroll in-house, companies should consider the principal costs of buying a desktop and its components, office stationery, furniture, and other overhead expenses required to maintain an employee. Companies should closely consider all these unaccounted costs other than employee salary to keep a permanent employee. Outsourcing Payroll Process will save these costs to companies.
Instead of relying on untrained employees who may require time and resources for training, companies can choose to employ a professional payroll expert on a job basis to processes like employee payroll. A professional with the necessary experience will save time and avoid unnecessary delays in processing the payroll.
Payroll processing generally involves several legal formalities which the company should be aware of and adhere to. In addition, the company should also be mindful of all the latest rules and regulations related to payroll. The company may face an issue if the in-house team is unaware of these legal formalities. Hence, hiring a professional expert who tracks the legal developments will save the company from possible troubles.
The most significant benefit of technology is that it will enable companies to sort and organize the data in a structured manner with flexibility. The technology additional provides robust security to the employee's data which is paramount to a company. However, the companies should understand that the technology comes at a cost that includes principal costs and other timely maintenances. Maintaining the in-house payroll system with the required technology apparatus will be a considerable expense, and the software fees might even disrupt the company's cash flow. Payroll companies that provide payroll services to many companies will require advanced software as part of their job.
Data Security & Confidentiality
The fear of data breach and undermining confidentiality are reasons that drive the companies to set up in-house payrolls systems. But many times, the lack of diligence of the payroll team can result in data leaks and affect the company reputation. Hence, the companies must employ a reputed and legally certified service provider to manage payrolls. Payroll Service Providers with relevant ISO certifications ensure confidentiality and required quality standards for payroll processing. Outsourced service providers can take steps to ensure the data is protected and shared only on a need-to-know basis with prior approval from company management. For example, when providing the payroll details to accountants, the payroll service provider can give just the summarised journal entry for all accounting purposes without revealing the staff earnings, thus ensuring complete confidentiality.
Payroll service providers who exclusively work to process payroll usually hire experienced individuals who are qualified and understand the payroll processing & the applicable rules. Outsourced payroll providers readily bring their years of experience and possible solutions because of interacting with various clients. There is also a lower possibility of payroll process fraud in this model.
How Can Jaxa Assist?
Jaxa Chartered Accountants are an expert accounting and payroll service provider company operating in the UAE. Our offices across different Emirates serve clients' complete payroll functions that include processing salary payments as per compliance, preparing monthly payroll reports, managing payroll-related operations including pension funds, gratuity, bonuses, tax, etc., preparing employee payslips, and many more. Please Contact Us for any questions on outsourcing payroll services of your company. We'd be happy to assist you!