A payroll processing system offers a medium that is essential for businesses in the UAE to process the critical HR function. As long as a system is able to meet the requirements and needs of a business, then it may be able to choose between any of the following payroll solutions for businesses in UAE:
- Manual payroll processing
- Payroll system
- Outsourced payroll processing
Manual payroll processing
Manual payroll processing is often the last resort and taken after careful deliberation. It requires a payroll specialist in processing an entire payroll of business by hand. This is not recommended as it increases the likelihood of errors. A business is to only choose for this route if manual payroll processing is only the solution and the business only has a few employees. An upside to this option is it is inexpensive in the short-term to implement.
A business can purchase a set of standard timesheets from stationery shops, then employees will complete them. A business can perform wage calculations with the use of a calculator, write pay stubs or paystubs by hand or typewriter, then hard copy all data related to payroll in storage boxes. Attempting to opt for the option and having employees process payroll without being knowledgeable of payroll legislation can result to inaccuracies.
Payroll system
An in house computerized system would be a viable alternative for businesses that wish to eliminate the manual processing of payroll. For this, it will involve the use of payroll software which is able to store payroll data that is for compliance and record-keeping. The system will be taking care of the calculation of deductions and wages that are based on data being inputted to it. For example, a payroll person is to enter the filing status, allowances, and work state of an employee into payroll software. Payroll software has withholding tables that are often hardcoded into it and it is able to perform calculations.
A payroll system often requires a business to invest and maintain it. A payroll staff, depending on a software’s complexity, may need to undergo extensive training. For payroll that is small, one payroll person may be able to handle payroll processing. For a large payroll, a thousand employees would need a full staff for processing payroll. This can include a payroll specialist, payroll manager, payroll supervisor, payroll assistant, and payroll clerk. The system may prove to be expensive for small businesses in UAE, especially if there’s a need to acquire one that is both efficient and reliable.
Also Read: Why Payroll Outsourcing is Great for Your Business
Outsourced payroll processing
Outsourcing the payroll processing of a business to a payroll specialized firm in UAE is often the most time saving and cost-effective solution for employers. A payroll service provided by payroll professionals which will process the payroll of clients can eliminate the need for paying on-site staff for calculating salaries and benefits. Also, an employer no longer has to handle and manage payroll software glitches and errors. Basically, outsourced payroll processing can provide a business in UAE time for focusing on more crucial business activities.
There are many payroll professionals that offer employers access to the payroll data of employees as well as payroll registers. Also, payroll services offer businesses different methods in transmitting payroll hours with every pay period, may it be via email, online or fax. The convenience is often the reason why most businesses choose to go with this option.
Of course, there is a downside to outsourced payroll process and that is when employees are concerned about issues with regards to their pay. Immediate help is definitely required, but there are service providers that don’t provide 24/7 or immediate assistance. Also, there are payroll service providers that make payroll errors and the authorities may penalize the business instead of the payroll service provider. A great way of dealing with this concern is by opting to outsource your company payroll with a reputable specialized firm. The firm has to carry the burden when errors are made by their experts. It also has to have several professionals that will double-check the work of each one in order to provide you with the best payroll services in UAE.
You May Also Read: Payroll Processing: Payroll Schedule That’s Best for the Business
How to Choose a Payroll Service Provider to Outsource to
If you want to opt for the best option for processing payroll in UAE, then you must know how to select the right service provider in UAE to partner with. A very important factor that you need to look into is the level of customer service or support the firm is able to provide. A business is to feel confident from the fact that a customer support representative will be readily available during times of need. This can ensure a good relationship and a successful partnership with a payroll outsourcing service provider. As for how to determine a payroll provider’s level of support, you have to ask questions such as the following:
- Is the support available via chat, email or phone?
- What are the certifications that the support staff possess?
- What’s the guarantee I get that I will receive a dedicated team for payroll processing?
If you want to know more about processing payroll in UAE, don’t hesitate to reach out to us as we’d love to hear from you!
