Fluctuating economic conditions and global uncertainties compel businesses to constantly work on ways to streamline business processes and remain cost-effective. If you outsource payroll Service, a time-consuming activity and a non-core business process, it can help in boosting business productivity and enable organizations to focus on more critical tasks.
Also Read: Importance of Payroll Accounting Services
The Importance of Payroll Processing
Payroll is a particularly crucial task of an organization. Timely payroll processing is critical for ensuring that company employee remains engaged and focused on their work, not worrying about delayed wages. Additionally, maintaining accurate payrolls would also make it easier for an organization to manage during the audit season, ensuring a clear-cut payroll recording and transparency which would have a positive impact on the reputation of a company.
The reasons as to why it is recommended to outsource payroll processing to experts on this HR function are as follows:
Keeping a check on fraudulent activities
Payroll fraud is possible and it may even be occurring currently in your business. It is theft of cash via a business’ payroll processing system, and there are different ways in-house employees commit payroll fraud. This includes ghost employees, buddy punching, advances that are not paid back, unauthorized hours, and pay rate alteration. By outsourcing payroll processing to a service provider, you get extra protection from fraudulent activities as the outsourced firm doesn’t have a relationship with in-house employees.
No major infrastructure required
Outsourcing can help save money as no major infrastructure is required in implementing and managing payroll systems in companies which can be draining on resources. A lot of maintenance is required for extensive infrastructure for payroll systems. This may be difficult for businesses to invest, especially keeping in mind budgetary constraints. When you outsource to a specialized provider of payroll processing services, you completely remove this need.
No additional staff required
When you outsource payroll processing of your business, hiring and maintenance cost for payroll team gets eliminated. Outsourcing to a specialized payroll processing service provider does not just help save costs but also maintenance issues that come up with maintaining a dedicated in-house payroll processing team.
Reduced security threats
In-house payroll processing can often be a nightmare for an organization as there are many security aspects involved. The more exposure in-house employees have on sensitive data from payroll systems, the more there is a threat in the security of private and confidential information within a company. Entrust payroll data with experts as they have dedicated infrastructure, storage facilities, and security measures in place to safeguard the data of their clients.
Results to considerable time savings
Time wasted on non-critical and unwieldy processes can be costly and a significant distraction for companies. A research conducted has said that in-house payroll processing contributes a great deal to wasted time and loss of productivity in an organization. This is inevitable as payroll processing requires careful and special attention to detail. Fortunately, payroll processing can be outsourced so businesses can enjoy considerable time savings.
Compliance to government regulations on employee remuneration
The complex nature of payroll processing places additional responsibility on the payroll processing team, especially in ensuring compliance with all regulations that are related to the maintenance of payroll records. With the help of a firm that provides payroll processing services in Dubai, the business is not only compliant to regulations but also updated on relevant laws.
Direct access to experts
Outsourcing companies are staffed with payroll experts who can answer your employee’s queries on the phone, and act as a single point of contact for your employees.
Most payroll outsourcing companies can even come down to a client’s place of business to conduct in-house training sessions for payroll processing or have a hands-on consulting session with the company management and staff members on anything related to payroll processing and payroll records.
Payroll services in UAE
There is a variety of reasons as to why a business should outsource their payroll processing. Outsourcing such HR function will help free up cash, time and resources that could be used for more critical work which could help in the translation of primary business goals. Payroll processing is an activity that should be given to experts in UAE who can handle all the payroll needs for your company. The payroll services in Dubai can help you process your company payroll.
What does payroll mean?
Payroll comprises of a list of employees working in a company, as well as the total amount of money that a company pays to its employees. The recording of employees’ salaries and wages, bonuses, and all other kinds of compensation is included in payroll processing.
You may also read: The Top Six Reasons Why Businesses Should Outsource Their Payroll
How does a payroll outsourcing work?
A payroll outsourcing service provider will gather all employees’ information, obtain time card data, calculating pay that’s due to each employee, and then paying that amount by issuing a direct deposit or payroll check.