What Is Payroll Outsourcing? What is the Use?


Businesses sometimes hire an external firm to manage all payroll functions which helps save time and money and helps reduce the requirement for in-house trained payroll staff,  buying and maintaining the appropriate software package and catering to updated PAYE legislation. Whether payroll outsourcing is a cost-effective solution is dependant on a lot of complexity of the organization’s payroll requirements. 

The payroll outsourcing in the service role differs some suppliers provide a barebones service while others will manage with other things such as liaising with HMRC and maintain complete compliance without the main organization ever having to manage with payroll. 
 Business consultants have long condoned outsourcing non-core functions.

A non-core function is not a profit center. A non-core function is integral but it does not differentiate between your business strategically from competitors.In most businesses, administrative and back-office activities such as payroll are known as non-core functions. So, they are key candidates for outsourcing.

 Business owners and managers require several answers to the questions,  what do you tend to gain from outsourcing payroll? Is it worth investing all the time and effort to investigate and find out all the appropriate outsourced service providers?  Then there’s the work which helps in the changing of the function outside to the third party service.  Are the benefits of outsourcing more than the effort?

Ideally, outsourcing has three key goals to fulfill.
It frees up time and resources and helps concentrate more on your core business.
It reduces costs and risks.
It gives you leeway to more technology and expertise for greater performance well, such as payroll.
Tips for Choosing an Outsourced Payroll Provider
If you are considering outsourcing payroll, it’s a given that you should look at three points you’d look at when choosing any kind of provider: 
price
service
reputation
But when it comes to payroll, you can consider other points,
Depending on the requirements for a company may cater to the payroll services that they outsource while retaining control of other aspects. The payroll functions usually outsourced to a third-party provider include:


  • Running payroll and making any employee pay and withholding calculations
  • Depositing funds directly or in issuing checks to employees
  • Calculating state & federal payroll taxes, & making tax withholding payments
  • Filing required government reports
  • Withholding social security and pension contributions
  • Administering employee benefits

What Payroll Functions Can Be Outsourced?
Depending on their needs, a company may cater to the payroll services that they outsource, while they retain control of other aspects. The payroll functions are typically outsourced to a third-party provider such as,
Running payroll and making the employee pay and withholding calculations
Calculating state and federal payroll taxes, and making tax withholding payments
Depositing funds directly or issuing checks to employees
Filing required government reports
Administering employee benefits
Withholding social security and pension contributions

Benefits of Outsourcing Accounting Tax Services to Us


In today’s position of globalization and technology convergence, the process of carrying out business has been restructuring. It takes astute business sense to outsource the right business processes. Most businesses and large companies are doing the right type of outsourcing their accounting, financial reporting and payroll processes for ensuring efficiency and cost savings to the business. 

 Our accountingoutsourcing services in Chennai are always structured to suit an individual client’s needs and requirements. Some of the accounts outsourcing services of note are as follows:

Bookkeeping and General Accounting Outsourcing Services
Vrmaratnam and company’s outsourcing services team can deliver complete finance and accounting solutions to companies located in different parts of the world.

The function as complete outsourced partners and take complete responsibility of the client’s routine processes allowing the management the freedom to focus on the key strategic needs of your business by our accountants in Chennai. 


Best Range of Services

The range of our varied accounting services include

Book Keeping
Vramaratnam and company pride itself in keeping a trained staff who uses technology to carry out transactions on a regular basis. This methodical process of keeping track of all financial transactions diminishes chances for any glitches in the accounting process.

Financial Statement preparation
The competent team takes care of all different financial statement preparation such as balance sheet, income statement or profit, and loss statement, statement of retained earnings and cash flows.

Management accounts
They prepare management accounts ensuring that all essential information for company executives are available. 

Payroll Outsourcing
Preparation of the monthly payroll based on the inputs received from the organization. This would include all statutory and other relevant deductions.
Ensure deductions of all different amounts and according to statutory laws such as Income Tax, Provident Fund, and Professional Tax and so on.
Checking Form 16 for the Employees and file Qty. such as returns for e-TDS with Income Tax authorities.

Deposit TDS and provide proof of deposit.
Taking care of redressal of any issues.
Reconciliation of payments or statutory deductions and so on with books of accounts on a quarterly basis.

Tax Planning & Returns
The service includes aiding the clients to make necessary periodic income tax, sales tax, and other key returns. It also incorporates helping the client make the right investment decisions and helping them avail of different rebates and deductions.

Cash Forecasting
The services incorporate analyzing the cash requirements of the business and making the right cash forecasts for planning the future.

Why is Outsource Accounting Required in Business to get Benefits?

The long-term success of your business will be based on how well you maintain your finances today, and how do you plan for the future. This ...