Each employee relies heavily on payroll to be able to get paid the right amount, to the accurate bank account and on due time. And as the organization grows, payroll processing becomes a tedious and complex process which in turn directly affects the employees.
Hence it righteously makes sense to outsource Payroll Processing. Still some businesses hesitate to outsource because of several myths associated with payroll outsourcing .
Here are some of the myths with their corresponding facts to make your decision easier:
MYTH 1: Handling payroll in-house is cheaper as compared to outsourcing
FACT: It is more expensive and complex
By handling payroll in-house, you are spending more money than partnering with a payroll processing company. These costs vary from procuring the appropriate technology to training people, regular maintainence and having proper infrastructure. So it is therefore considered more efficient to outsource payroll service to a company who has the required expertise and resources.
MYTH 2: Setting up payroll is a onetime process
FACT: It is an ongoing process
Many companies believe setting up a new payroll system is a one-time process. Whereas in reality, there are various updates, law amendments and calculations to be made related to payroll on a regular basis. Hence, it is very much an ongoing process.
MYTH 3: Payroll refers to only salary calculation
FACT: It is much more than just salary calculation
Payroll includes much more than just calculating employee’s salaries like handling employee information (leave data, attendance data), making deductions, computing tax declarations, company benefits, health insurance, etc. Payroll professionals know how to handle everything to save you a big headache.
MYTH 4: Any HR person can do the payroll processing
FACT: Only payroll expert can manage payroll process effectively
HR professionals have their own set of tasks and deadlines which generally lead them in making mistakes like data inaccuracy and wrong calculations. This can hamper your overall time and productivity of employees. Hence, only payroll experts who have payroll processing as their core function can manage it effectively.
MYTH 5: Payroll processing is beneficial only for large businesses
FACT: Every business benefits from payroll processing
Many businesses see payroll outsourcing as an extra cost for their business. They believe that only large businesses can benefit from it in terms of cost and efficiency. In reality, it helps every business (even small and medium business) to focus on their core business function and avoid other miscellaneous costs associated with payroll handling.
Learn more about finance and accounting outsourcing services at Aristotle Consultancy