Processing Payroll Internally? Have you considered these cost factors while processing payroll internally?
Employees help an organization grow. It takes immense effort from each employee to pave the way for a company’s success. The organization indeed has to treat their employees fairly for their hard work; paying them on time is one way to do it. Payroll processing has a huge place in the functioning of an organization; it is one of the most essential functions too.
Payroll processing is a complicated and time-consuming process. There are numerous factors to consider while processing payroll. It is not just about recording the employee details; there are a lot of compliance requirement to consider while processing payroll. Organizations often feel apprehensive about outsourcing their payroll administration as they believe it is more expensive than engaging a payroll service provider to manage this activity. But they do not consider the unaccounted cost factors other than salary in maintaining a permanent employee.
The salary of an employee is not the sole cost factor involved in hiring an employee. Organizations should also take into account the cost of desktop, stationery, furniture, and other expenses involved in maintaining an employee. When you calculate all these together, the per-employee cost is very high. Outsourcing your organizational functions is one way of reducing these costs.
Organizations can choose to hire a professional to do their core jobs instead of hiring a professional for processes like payroll. Payroll is one of the most commonly outsourced functions today, as it does build a toll on the organization. The time involved in processing the payroll can be saved through outsourcing.
Payroll processing involves a lot of legal formalities and the company must stay abreast of the latest compliances. If you are processing your payroll in-house, complying with these legal formalities could be strenuous. With extensive experience, a good payroll outsourcing service provider stays ahead on compliances and can handle payroll functions efficiently.
Outsourcing payroll function offers you the benefit of advanced systems software that keeps your employees’ data secure, without any extra charge. One need not worry about the charges that will be incurred for technological and statutory updates, as these will be taken care of by your payroll provider. But, it may not be the case when you are doing the payroll process internally. In addition to the huge expense of maintaining in-house payroll, the software-related charges might even disrupt your company’s cash flow.
The fear of breach of confidentiality and data protection are other reasons why organizations perform their payrolls in-house. This is a prominent reason why organizations must choose a reputed and certified partner to do their payrolls. ISO 9001:2008, ISO 27001: 2015, and ISAE 3402 are some of the certifications which ensure confidentiality and quality standards in payroll processing
Considering the above factors, outsourcing your payroll function to a team of experts is a wise move. HLB HAMT is a leading payroll outsourcing company in the UAE. We ensure our clients experience a seamless process and on-time payment. HLB HAMT is an ISO 9001:2008, ISO 27001: 2015, and ISAE 3402, Type II certified firm. Having served an impressive list of small and multi-country clienteles ranging from 1- 10,000 employees, our dedicated team of payroll experts ensures maximum customer satisfaction.
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward. HLB HAMT provides payroll in UAE, Bahrain, Qatar, Saudi Arabia, Kuwait and Oman.
To know more about our payroll process, click here
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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