The management of payroll, the system which businesses in UAE use in tracking payments for staff members, is absolutely important for any business operations. Management of payroll is among the seriously regulated aspects for running private businesses. Today, over forty percent of companies manage their systems for payroll inhouse without any external support. Failure in supervision payroll of a business effectively can lead to costly and harsh civil and criminal penalties. Of course, this can cause talented key employees to lose their faith in their employers. They may seek employment with another firm wherein they are able to feel like they will be appreciated more. Does your business experience problems related to payroll? If so, then here are the four things that you should think about:
Establishing a Pay Period
Having a pay period that is clear, regardless of whether it is monthly, biweekly, bi monthly or weekly, is very important. The pay period for your business will be up to you. Salary is a necessary cash flow expense for any business, which means having a plan that’s solid for when your employees are paid would prove to help the business’ budget being managed effectively. Proper planning and establishment of a pay period will also help you in the management of your various liabilities related to company payroll. Finally, understanding the company’s pay period is going to help your staff members manage their personal budgets as well.
Classifying the Company Staff
Are your staff members’ part time, full time or freelancers or independent contractors? The government authorities in UAE would want to know when your business is audited. The manner your business is classifying staff members affects the kinds of payroll deductions that you are to take into account. The number of employees working for you full time will also have an impact on the requirements of your business in providing benefits like health insurance among others.
It is also important for a business to classify staff members according to how they are paid, may it be salaried compensation or hourly. This is another factor that is going to have a huge impact on the budget of your business as well as regulatory requirements that your business has to meet.
Keeping Accurate Records
Keeping accurate records in terms of payroll is not just a good idea intuitively. In most cases, it is the law. In the UAE, companies are required by the authorities in keeping accurate information regarding employees even after they’re no longer working for the business. Staying organized plus making sure the records are all precise would also help in saving the business money and time, two very crucial resources. The average business in the country spends hundreds of hours every single year just managing the payroll of the business. By having excellent processes for record keeping, you will keep your business focused on income rather than outflows of cash. This is also the reason why majority of businesses in UAE outsource payroll processing in UAE.
Seeking the Help of Experts
If you’re of the forty percent of businesses that are currently managing payroll processing in-house, then consider the help of third parties such as payroll outsourcing service providers. The government authorities are in a public crackdown on classification of staff members of businesses on their payroll in order to stay proactive in enforcing regulations. Small businesses will have the spotlight as they are the most vulnerable when it comes to being organized and fully complying to regulations. There are myriads of businesses in the UAE that offer payroll outsourcing and they can help you manage your entire company’s payroll regardless of its size.
Most of the businesses that provide payroll service in UAE also offer additional services like tools which are specifically designed in helping your business track its cash flow efficiently. Modest investment related to payroll management will be able to save you a lot of stress and headaches down the road when the business is audited in the future.
Managing payroll in UAE or anywhere else in the globe can be extremely time-consuming not to mention complex. It is absolutely essential for successful businesses to ensure that they are staying on top of their company payroll. Establishing a solid pay period, classifying all staff members correctly, and keeping accurate records of important employee information will get your business on the correct path towards an effective and efficient payroll system.
Seeking the help of a service provider like Payroll Middle East, which specializes in the management of business payrolls, will help you even more. Take your time in ensuring your growing company is on the correct path with its processing of payroll, and consult with payroll specialists in UAE if you feel like you need to make sure your business succeeds, paycheck by paycheck!