7 Common Misconceptions about Payroll

A payroll outsourcing Management Company takes away the payroll load from you. They insulate the process with expertise, cut-down costs, and nullify the risk of errors and non-compliance.

You cannot afford to go incorrect with payroll services.

Why?

For pioneers, the cost of mishandled payroll initiates with strict fines and penalties and finally leads to ruining the complete business. 

·         As per study payroll problems affect 54% of the employees.

·         40% of SME proprietors have faith that handling payroll and associated taxes are the worst and most time-consuming part of having a business.

The concern, still, is not payroll but the misconceptions flying around it that create difficulties and damage businesses.

Here are the 7 payroll mistaken belief and facts after them

Payroll is a one-time effort

This cannot be farther from the truth. Setting up a framework for payroll is a continuous process — it doesn’t end with setting up payroll software.

The process needs regular evaluation and periodic updates. And that’s surely how you maximize its effectiveness.

·         You need to continuously eliminate repetitive tasks, find error-prone areas, and identify time-consuming parts using payroll software.

·         Changes in the work atmosphere, compliance standards, and technological developments also contribute towards making payroll an ongoing process.

Remember to regularly inspect your payroll software and the whole process.

Payroll = salary calculation

Payroll is often misconstrued as a process of paying employees for their work jobs. The reality, however, is different.

·         Payroll cannot exclusively fit under HR. It involves accounting procedures too.

·         The payroll process involves salary calculation as per the leave policy but that’s just a part of it. It also deals with time and attendance, deducting TDS and contribution for PF, ESI, PT, & all that’s applicable.

Payroll is therefore much more than salary computation.

Anyone from the HR/Finance department can process payroll

Payroll deals with highly confidential employee data so it mustn’t be handled by just about anyone.

·         Assign payroll responsibly to experts who have the necessary skills.

·         Make sure they know to handle sensitive information besides knowing about taxations and its statutory aspects.

·         Always have a confidentiality agreement in place to maintain the security of your payroll data.

All about tax

Taxation is easier to handle in-house.

Companies that outsource the entire payroll process often handle taxation in-house to save costs. However, by not handing over the process to experts, they end up increasing the cost manifold through non-compliance and heavy penalties.

Payroll doesn’t involve employee taxes.

This is misleading. Employers must fairly withhold payroll taxes from employee’s gross salaries. The payroll team then — on behalf of the employees — pays it to the government.

Payroll doesn’t involve strategy

That’s a lie.

Payroll doesn’t comprise transactions alone. There are various strategic activities that go into making an efficient payroll process.

·         Payroll components are thoroughly reviewed to ensure that your payroll synchronizes with the industry standards, benefits employees, and gives you a competitive edge.

·         Ensure that your payroll and organizational goals are on the same lines.

Payroll has no role in retaining the employees and enhancing their experience

Employees have both monetary and non-monetary motivating factors. And both affect their experience.

A well-organized payroll system with correct payments, pay slips issuance, and ESS portals raises employee’s trust in the association. This instructs a clear culture, decreases employee revenue, and increases their understanding.

Outsourcing Payroll outsourcing is not worth it

A collective misconception is that it is easier and inexpensive to deal payroll in-house.

Reality – Here are the elements to deal payroll internally

You’ll need

·         Time and money to upgrade and maintain your payroll software.

·         An in-house IT team.

·         IT Hardware support, time and again.

·         Extra time and cost to train employees, for payroll administration and taxation, and to keep up with the compliances.

·         High risk of errors and non-compliant procedures.

·         Cost of penalties and punishments if you go wrong.

Does it look like it’s simpler or inexpensive to handle with the above-mentioned?

The truth is, a payroll outsourcing firm takes away the payroll burden from you. They separate the process with proficiency, cut-down costs, and abolish the risk of mistakes and non-compliance.

Conclusion

Now you recognize the normal misconceptions that trap you and collapse your business. The next step is to understand their corresponding truths and take one step at a time to eliminate them by leveraging the latest processes and technologies.

To know more about our top notch payroll outsourcing services India, you can contact us. Visit: http://kvb-group.com/web/payrollmanagementservices or mail us at info@kvb-group.com