The needs of small businesses when it comes to payroll processing can differ from the requirements of large enterprises. A small business in UAE has fewer staff that can handle payroll, which means it is absolutely crucial to possess the right kind of system and have it in place in order to handle this important task. By understanding the difference between large enterprise payroll and small business payroll, you are able to find the payroll processing system that perfectly works for you.
Small Business Payroll Processing
It is worth noting that when selecting a system or payroll processing for any kind of business, there are two choices: processing payroll internally and utilizing a payroll service that is provided by experts. There is no answer that fits all as there are a couple of considerations that affect the option that is best for a particular business.
To run a payroll system internally, the business has to have enough experts available in keeping up the system, managing payroll, providing reports, and file reports to authorities without the risk of getting fined for violations.
The main benefit of internal payroll processing in UAE is the control that it offers. Businesses can gain efficiencies as well as save money with a system that is managed internally. Having a system that takes care of every single aspect of payroll without having to invest in employee hiring and equipment is the main reason why most businesses opt to acquire payroll services. Take note that when you are selecting a service provider based in the UAE for payroll processing, you have to make sure that the service provider is trustworthy and capable of fulfilling its promises. The payroll processing that is done by a service provider or third party should also be implemented in a safe and secure environment that does not promote any mistakes.
Regardless of the system that you choose, there may still be certain steps that you would have to perform internally. This can include timekeeping for hours worked by employees. If you are not sure which option you should choose, then think about these considerations prior to making a final decision between payroll processing internally and utilizing a payroll service in UAE.
Read More : Top 10 Advantages of Outsourcing Accounting and Payroll Services for Business.
How unique is the requirement of the business for processing payroll? There’s a huge difference with the customization abilities that payroll systems have. A basic system that is often set up by a payroll employee does not allow for customization at all. Other systems that are more complex and thorough require expertise in their setup and maintenance which is why they are only offered by experts. Customization of the payroll system can include deduction and benefit calculation, reports, employee setup, wage garnishment setup, and a lot more.
When you are searching for a payroll system or payroll service provider to help you in managing payroll, customization is an area you have to put a bit of focus on. Make sure that whichever option you choose includes the ability to make customizations that may be required by your business in running payroll without any stress.
How will the staff members of your business prefer to be paid? This can be silly; however, there’s a difference in the ways payroll systems let employers pay their employees’ wages. Do you want to have printed checks or direct deposits? Maybe you prefer both. Does the staff want their salary deposited in several different bank accounts?
What about an e-system for staff members which allows them to view their previous electronic pay advice? Can pay cards become available for the entire business? There are payroll services in UAE that offer variety when it comes to paying distribution methods. Others also limit you to a method for paying employees. Make sure that your staff members are paid in a manner that is beneficial for them as that will also prove to be beneficial for the company. A happy staff makes for a productive workforce.
Tracking of Benefits
If the payroll benefits of your business are simple and basic, then any system for payroll processing will be able to successfully manage all of them. However, when the benefits start becoming more complex, basic systems that are set up by internal payroll teams won’t be able to handle this crucial assignment. Customized benefit codes, retirement plan limits, benefit effective dates, and scheduled benefit deductions are more advanced. This does not even include the compliance with existing regulations of the government!
If you think that your payroll needs are not met by your internal team for payroll processing in UAE, then you are to outsource to payroll specialists. When a payroll system can’t track these crucial matters effectively, a business or its payroll team will start tracking them manually. This is a bad sign as that can lead to tracking errors and spending even more time processing payroll because of the mistakes.
Call us at Payroll Middle East for more information!
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With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.