Advantages of Outsourcing Payroll Services
Outsourcing payroll services to India has many advantages. Companies that send payroll services to India can reduce costs related to carrying out payroll activities in-house and free up accounting staff, or even reduce such staff, for a more streamlined accounting department.
Though it seems that outsourcing of payroll services is only meant for large companies, the truth is that SMEs can also benefit greatly from it. The advantages like accuracy of services, data security, and flexibility of options are too crucial to be ignored.
Outsourcing payroll services allows organizations to focus on their products or services rather than investing time and resources on payroll preparation.
Clients can send payroll services such as payroll processing, check generation and distribution (or direct deposit), payroll tax filing, and W-2 generation. They can also outsource additional payroll services, including 401(k) management, human resources management, and employee handbook development.
As to what kind of payroll services a client would want to outsource would vary according to what options a client’s business requires.
Cost optimization is a major reason why companies outsource payroll services
In the U.S., an accounting firm will charge from $0.80 to $2.00 for a basic payroll service, and usually has an additional base fee, which depends on the frequency of payroll periods. Options such as tax filing and direct deposit can add $4-$9 per payroll period.
But if a company decides to outsource the same payroll services, the cost would be one-fourth, and the time taken cut in half.
Here are six reasons why companies, whether directly engaged in financial services or not, should be shipping their payroll services to India:
For companies and individual clients, payroll is a very cumbersome and tiresome process. So, if you decide to keep this function in-house, you may have to deal with complicated things such as tax tables, credit-debit statements, reports etc. Along with this, you will have to deal with statutes, government agencies that would not help, and a number of other time-consuming tasks.
2. Leverage time
All companies find time to be scarce. So struggling with payroll taxes, especially for small businesses and individual clients, can be a distraction that takes their energy away from more useful or urgent activities. It’s better to outsource to India payroll services and pass on the payroll headaches to someone else.
3. Get the best bargains
Shipping payroll services to India is like a bargain. Why spend hours doing payroll by oneself when the company can get help doing it in less time at a very low price? With the time saved and the efficiency gained, it is a bargain for businesses of all sizes.
4. Avoid penalties
About 50% of SMEs end up paying IRS penalties, according to surveys. These penalties can easily be averted by outsourcing payroll.
5. It facilitates direct deposit
All employees like direct deposit. It’s a low-cost way to provide an extra employee benefit that is much appreciated as it does away with trips to the bank.
6. Eliminate software hassles
Companies can skip the hassles of software updates. Leave the updates to the outsourcing vendor providing payroll services.