There are times when all business owners think whether they should keep processing payroll in house or outsource it to a third-party vendor or a company. This one decision can have long-lasting impacts on many of your functions and departments. As such, it should not be taken lightly.
In this article, Ms. Kanika Kohli, VP, Trendsetters Facilities & Technical Services (TFTS) talks about the things to consider when outsourcing payroll.
Workforce Deviation And Distinctiveness
Some companies’ payroll functioning is relatively easy. If you only have a few employees and the process of paying them is straightforward, then it is best to keep managing it in house. However, companies that have several workforce variations and distinctiveness might find it best to outsource.
For instance, if you have a mix of full-time, part-time, and seasonal employees your payroll will be more complex. The same is true if you’re continuously onboarding and terminating employees. Plus, having workers in multiple provinces and zones can also make payroll more challenging, as can the offering of savings accounts, retirement accounts, and health plans. The more complex your payroll, the better the chances that outsourcing payroll is the correct call.
Protection Of Data
Within your payroll management software, you will store sensitive information, including employees’ personal and banking details, and salary information. It’s critical to think objectively and understand just how safe and secured that information is on your server. What’s more, it’s essential to consider whether you would be relaxed with that sensitive data leaving your premises and being stored externally with a payroll service provider. In general cases, however, payroll providers have stronger data protection protocols than any other businesses.
One function in your business that absolutely need to be 100% accurate, it’s your payroll. Your employees expect it and depend on it. If you are finding yourself making payroll mistakes quite often, then outsourcing payroll could be a wise decision to make in order to avoid employee dissatisfaction, poor reputation, along with fines and penalties. Payroll and tax errors can happen, but they must not be a common occurrence.
In the event when mistakes occur, payroll is delayed, or laws are broken during the process of payroll, do you want to be the one responsible for fixing the problem rapidly and efficiently? Do you want to be the one responsible for fines and penalties for noncompliance? By outsourcing payroll, you can place some if not all the accountability on the payroll company if things go wrong.
Trendsetters Facilities & Technical Services (TFTS) is India’s fastest growing specialized staff and labour outsourcing company that currently service to some of India’s biggest organizations like – DMRC (Delhi Metro Rail Corporation), Bajaj Automobiles, Reliance Infrastructure, Haldirams, HCL and more. Trendsetters Facilities & Technical Services is also the leading specialized labour outsourcing company to the manufacturing units in SIIDCUL (State Infrastructure & Industrial Development Corporation of Uttarakhand Ltd) and Jaipur World City. It recruits, do payroll management and outsource technical staff, manufacturing staff, labour licensed workers, ITI qualified personals – those who are difficult to find in large volume, locally near the manufacturing units. Trendsetters Facilities & Technical Services Pvt Ltd was incorporated in Feb 2002 as a Private Ltd Company on the intrinsic core value of Responsible, Responsive and Dedication of a Defence Services Officer at the helm as its Promoter. The company’s Strategy is that of a Solution Centric Organisation where, instead of enumerating the mere services being on offer, the Focus is on the Clients, their Needs and How the Services being offered can be linked to provide value-enhancing solutions for the Clients.