5 reasons why Payroll Outsourcing Can Be A Boon for Startups & SMEs
1. Saves Time and Enhances Productivity
Time management is one of the most crucial aspects of growing a business, especially for startups and SMEs. And in-house payroll processing often tends to consume a lot of time for the business. Keeping accurate track and maintaining a large amount of data that includes paid time offs, new hires, bonus benefits, and tax change requirements can get quite tedious! As staff numbers grow - this process only keeps getting more cumbersome.
A payroll processing firm, on the other hand, will take all these tasks off your hands and get done with them in half the time to boot! In this way, your employees are instead completely focused on the core business tasks to help generate more revenue.
For example - Besides salary processing, IDC Technologies manage reimbursements, do income tax computations, handle statutory compliances, and even install an issue resolving cell. Our firm's team of experts can quickly provide a range of services to help you save precious time and enhance the productivity of your business.
2. Cost Effective
While large corporations often have in-house payroll departments, it can get quite expensive for startups and growing businesses to maintain the costs of hiring a team of full-time accounting professionals as well as give them additional benefits! This is where payroll outsourcing can be quite a boon as they require to be paid only for the services provided to the business.
Moreover, such outsourcing firms also do the job of an entire payroll team! They also find cost-effective solutions in your payroll system and help you avoid government penalties. In the long run - it proves to be a super cost-effective system!
3. Gives Higher Accuracy
Because such outsourcing firms invest in top-notch technology - they can provide quick HR and payroll management solutions to businesses. Access to technology such as robotic process automation (RPA) as well as cloud-based servers bring in the high accuracy and better transparency that is required for payroll processes.
In fact - some agencies also tend to integrate payroll systems with HR so that the information that gets updated by them is easily accessible for payroll management. Moreover - it’s even better if IT staffing and recruiting companies (such as IDC Technologies) offer payroll outsourcing, as it leads to even more integration with the HR management system to streamline the payroll process.
4. Ensures Compliance with Current Laws
A lot of growing businesses often tend to struggle when handling payroll policies as per the required government regulations. Complex laws, ever-changing tax regulations, PF percentages, and employee benefit errors can often become audit issues for the company that may lead to hefty penalties.
In this aspect - payroll services always keep updated with the right information and have the perfect expertise to make your entire payroll system compliant with the current laws of the government.
5. Improves Data Security
While many are of the opinion that data may be less secure outside the company - this is quite a myth! In fact - there are a lot of risks also associated with in-house payroll, such as server unsafety, identity theft and embezzlement.
Reputed payroll outsourcing firms on the other hand, have secure safety policies in place to ensure that your company's critical data is safe. They often save your data on secure cloud-based servers and have the top encryption technology in place!
At IDC Technologies too, such confidential data is given the top network security and at times a virtual domain network is also created for payroll processing. In fact, record-keeping too, is done in an isolated area to ensure further physical security. With our varied efforts - we ensure that your data is in safe hands as well as all payroll functions are done efficiently.