Payroll processing basically deals with handling the back office functions of a company by performing administrative duties relating to timely payroll processing of a company. Outsourcing payroll services has helped a significant number of companies in many ways. In the present scenario with a lot of BPO’s rising up and competitive pricing also coming into picture, selecting the right service provider is a very crucial part.
Here’s a list of reasons on what every company should look out for before signing a contract with outsourcing companies.
Nature of work required: Payroll services come in two forms Online service and Full Service. Both have different modes of input. Online services would require for entering employee attendance details online on their website and later they would have everything processed, but basically only the latter half of the work is actually outsourced, this is considered cheaper because of only the limited amount of work is actually being outsourced. Full service requires an employee to send only his working hour and punches to the company that too in bulk and the rest is taken forward from there. This method involves a lot of work processing work which is taken care of by the payroll company.
Mode of Communication: Every company has different means of accepting your work, some prefer email, some fax, etc. Depending on the level of confidentiality the appropriate mode of communication has to be selected. When highly confidential data is faxed to any outsourcing company they have to shred that information after use. Client visits would help judge what measures are being taken to ensure security of such information.
Funds Management: How a payroll processing company works is that, first the funds required to credit as employees salaries should be transferred to the outsourcing company, this should be done well in advance of the pay date. The most important aspect the client should understand is that despite outsourcing payroll services it is client’s responsibility to pay the correct tax amounts and ensure legal compliance. Hence every outsourcing company that provides payroll management services should be studied well in advance, check how the audits are performed and how the allocated funds are handled.
Though such critical tasks are better off outsourced ensure that the right company is chosen.