Art Rooney once said – “The biggest thrill wasn’t in winning on Sunday but in meeting the payroll on Monday.” And we feel he was quite correct in saying so. Payroll is surely very complicated and consumes a lot of time. It also involves a lot of responsibilities on a day to day basis.
A small to mid segment business house finds payroll very taxing and complicated. That is why these companies often outsource their payroll task to third party payroll companies. This ensures smooth operation of payroll services as it is handled by these third party payroll companies.
But, before we dig down deeper let us try to understand what exactly is payroll and what all payroll involves.
Table of Contents
What is Payroll
All employees who are listed and get paid under a company are called Payroll. The accumulated amount that an employer releases for payments to its staff members also refers to Payroll.
What Payroll involves
There are a few important things which come under Payroll of a company. There are as follows:
- Payment Policies of a Company, company’s flexible benefits and leave policies comes under payroll.
- It also involves different components of a payslip such as basic pay, house rent allowances, leave policies and leave travel allowances.
- Other heads such as employee fund benefits and insurance for the employees.
- Amount of gross salary, net proceeds and various deductions come under Payroll
- TDS and Provident Fund and similar deductions are also considered to be a part of Payroll
- Crediting salary for employees through proper channels is included in Payroll.
Overall, we can say it involves every aspect of monetary benefits an employee receives while working for the company.
Different Stages of Payroll
Payroll team works based on proper plans. A constant task of changes, contribution, funds, compensation and benefits needs to be monitored by the payroll team. Some companies find it very tedious as there are a lot of compliances which need to be maintained. The different stages of Payroll are as follows:
- Pre Payroll Stage
- Process of Actual Payroll
- Process of Post Payroll
Pre Payroll Stage
The net add up to be paid is influenced by different components. The organization’s different strategies, for example, pay strategy, leave and advantages strategy, participation strategy, and so forth become an integral factor around then. As an initial step, such arrangements should be all around characterized and get affirmed by the administration to guarantee standard finance handling.
Process of Actual Payroll
At this stage, the approved information is taken care of into the finance framework for genuine finance handling. The outcome is the net compensation subsequent to changing important assessments and different derivations. When the finance measure is finished, it is consistently a decent practice to accommodate the qualities and check for precision to dodge any mistakes.
Process of Post Payroll
All legal derivations like EPF, TDS, ESI are deducted at the hour of handling finance. The organization at that point dispatches the sum to the particular government offices. The recurrence can differ contingent upon the sort of the duty. By and large, installment of contribution is made through challans. After all contributions are paid return/report are documented. E.g., for documenting PF return, ECR is created and recorded.
Third Party Payroll Companies to take up their entire payroll needs. At PITCS, we have a dedicated team who looks after end to end payroll solutions of reputed companies. And PITCS says – “Taking care of your employees’ happiness is another way of saying, “We care for You and value our oneness.”
Why Third Party Payroll Companies
There are a lot of benefits. Third party payroll outsourcing companies are proficient. They have highly skilled and proficient staffing who knows what is best suited for the company. This always is a win-win situation for companies who have outsourced their payroll to third party payroll companies in Bangalore like PITCS.
Advantages of Third Party Payroll Companies
There are a lot of advantages if companies tie up with Third party payroll companies. These are
- Better growth in business
- Cost saving
- Time saving
- Better Compliance
PITCS Scope of Work
- Monthly payroll processing based on inputs provided Hr team from Various Locations.
- Bonus, Variable Salary, Ad Hoc Payouts.
- Tax Computation.
- Bank Advice Statement.
- Customized Monthly Payroll.
- Full & Final Settlement processing.
- ESI/PF/PT/LWF/TDS Calculations.
- Query Management(Email/Telephone).
- Quarterly and Year-end Tax processing (Form16, Form24)
- Year-End Investment Proof Verification.
- Salary increment and arrear processing.
- Tax and rent verification..
- Full and final for resigned employees including all calculations related to notice period recovery,
- Leave encashment, loan recovery, gratuity, rent, tax saving verification, provisional form 16
- Generate statutory and MIS reports.
Picking a third party payroll company admirably is critical to guarantee your Payroll cycle is productive and smooth. PITCS offers shifted levels of Payroll administrations which makes it simpler for organizations to pick the administrations dependent on its necessities.
PITCS is a third party Payroll specialist co-op in India offering extensive arrangements on Payroll preparing, Compliance, HR Consulting, and so on.