What to expect from Outsourced Payroll Service Providers

As soon as your business grows it becomes tough for you to manage the payroll of your company. Even companies with 20 people find it tough to manage their payrolls without appointing a separate executive to handle this chore. A task that that primarily with the top people of a company is now delegated to other people as the work is now too much time consuming and does not add to your productivity.

Many times it gets costlier for the company to appoint separate staff to handle this unproductive and un-interesting job. Hence we see owners deciding to outsource this part of the company function to specialized payroll management companies who the same task more professional and at a lesser cost to the company.

So if you prefer to do the same what should you expect from the company that handles your payroll assignment.

1. Register with the right authority and make available all data that needs is required to be shared. Eg TDS, PF, Police Verification, HM Revenue, Customs etc.
2. Maintain a Leave report for each employee, which includes Sick Leaves, Casual Leaves, maternity lives etc
3. Track all allowances and reimbursements like Statutory Sick Pay, Statutory Maternity/Paternity Pay , Pension Pay, Emergency Advances,  Student Loan deductions etc.
4. Compute tax and insurance deduction and send them along with payroll for each employee
5. Maintain records of Cash /  Check / Online payments
6. Maintain Provident Fund records for the Company and issue the payments regularly. Help clear provident fund requests and transfers for individual employees.
7. Generate payroll / pay slips in time, pre-authorize them and make timely payments.

The above is the basic list of expectation that a business owner has from the Payroll Management Agency they outsource their task to. It would be wise to cross check if the same company is handling the work of your competitors in the same market. The other company many be ethical in its dealings but its always wise to play safe than be sorry latter. There are chances vital information related to your personnel and their CTC may be passed on to your competitors.

Reference: http://en.wikipedia.org/wiki/Payroll

Kevin