Small and medium enterprises form a large share of the market. These companies have 300 or fewer employees.
While this workforce is not too big, it is large enough to increase payroll calculations and management challenges for your HR team. You start facing complicated challenges of compliance, calculation accuracy, and data compliance. Managing these challenges manually in-house is a hassle for the HR department.
This is because a large workforce has varied demands. With these demands for optimum employee experience, comes the demand for an efficient payroll structure. Creating this ecosystem in-house means spending a huge sum of money on this department.
For this reason, in this article, we have discussed how you can manage a payroll of 250 or more employees without any glitches or challenges. Check how payroll management services can support you.
What Does It Mean To Run The Payroll Department For 250 Employees?
Before we move to how payroll management companies in India can help you handle a payroll of 250 employees, you need to have a closer look at what it means to execute a payroll of 250 employees. This is not a simple task, it involves various complexities.
Here’s what you need to achieve manually if you don’t use payroll management outsourcing services:
- Collect data that goes into calculating and preparing payroll.
- Enroll every employee of the organization in the pension scheme or other government-defined scheme.
- Calculate and update the gross and net pay of every employee on a monthly basis.
- Calculate the statutory taxes, deductions, and tax payments from every employee’s salary.
- Take into consideration the government compliance rules, such as minimum wages.
- Correctly deduct taxes as per the different salary ranges of different employees.
- Pay all your 250 employees on time and offer them payslips for future references and details.
- Restore and retain data related to ITR submissions and salary payments of employees.
- Create quarterly and annual reports for the HR and payroll department.
- Update and refine data of the payroll department from time to time.
Challenges Of Managing Employees In-House
The reason why companies choose a payroll management solution or employee payroll management is that there are so many challenges in managing the payroll of 250 employees manually. As we have discussed above, it is not easy to handle 250 employees at once and manually take care of every task.
Let’s explore these challenges first
With an increase in the number of employees, your tax requirements also increase. Your HR department needs to track several compliance rules and regulations closely to maintain compliance. For example, you have varied salary groups and you need to file taxes accordingly for every employee. Then, there’s ESIC deduction, PF deduction, etc.
Not following these compliance requirements can increase your chances of getting a fine or penalty.
2. Data Security
The data stored in your HR department is personal information and bank details of your employees. You need to secure these sensitive details at any cost.
Many businesses face challenges in securing HR data and eliminating one employee from viewing details of another. Since everything is usually stored in Excel sheets, the entire structure is highly complicated.
3. Payroll Accuracy
When payroll is manually calculated in a company, there are high chances of mistakes. This is because human errors are unavoidable and extremely common. When these mistakes occur, the wrong payroll is dispatched to employees, which leads to employee dissatisfaction. Further, sometimes, these errors lead to compliance issues as well.
4. Procedure Standardization
When the company is growing, the HR department needs to standardize processes, so that data from disparate sources is collected without hassle and payroll is dispatched smoothly. However, when the HR department is busy calculating the payroll, they can’t achieve standardization of processes.
5. Internal Policies
Every company needs internal policies to standardize the process and avoid facing glitches in payroll. However, without proper standardization, creating internal policies is also difficult. For example, with no standard procedure, how will you create an internal policy for increment or appraisal?
What does It mean To Outsource Payroll?
If you can relate to the challenges discussed above, then you can consider payroll management services.
What does it mean to outsource payroll?
When you outsource payroll services to a third party, you are hiring a company to handle your HR and payroll in place of creating a team. Of course, you can easily set up an entire team for payroll management, but that is not cost-effective and feasible, is it?
Think about it, when you use payroll management companies in India, you only need to hire employees, spend on their payroll, or upskill these employees. Further, the expense of mistakes is not on you. With payroll management services, you can allow the payroll company to handle every activity accurately with compliance.
How Payroll Outsourcing Service Can Help Manage Payroll of More Than 250 Employees?
Are you excited to know how you can easily manage a payroll of 250 employees with a payroll management solution?
In this section, we have elaborated on how payroll management outsourcing services help your business easily handle 250 employees.
With payroll management services, you are able to save time and manage tasks without any hassle. The company has many resources that handle tasks without challenges. You get employee payroll on time, hence, your HR team ends up saving this valuable time. They can spend this time on strategic tasks.
The payroll management solution is extremely cost-efficient. This is because you don’t need a full-fledged team to manage payroll, you don’t have to purchase technology, and you don’t have to pay for mistakes.
The payroll management company in India allows automating processes at a pay-as-you-go pricing model.
3. Compliance and Security
With payroll management outsourcing services, you can ensure security and compliance.
The compliance part is easily handled because the payroll management services provider has a team of experts. These people understand compliance deeply, so there are fewer non-compliance glitches.
The security part is handled because the employee payroll management partner has the right tech to keep your data and records safe on the cloud.
4. Employee Query Resolution
Employee query resolution is completely hassle-free with employee payroll management because you get an employee self-service portal. Similarly, your HR department also gets an HR login portal.
This tech-enablement helps employees open their portal and find details of payroll. Therefore, employee queries are automatically resolved to a great extent.
5. High Employee Satisfaction
Your employees are getting accurate payroll.
Your employees are getting payroll on time.
They don’t need to worry about tax deductions.
They can answer queries from the portal easily.
All this contributes to high employee satisfaction. Therefore, payroll outsourcing helps you keep your employees satisfied.
Managing 250 employees in-house manually is not an easy task. Your HR team is there to upskill and motivate your people. They are there to help with people management. if you engross your HR department in hectic calculations, they won’t get time to nurture your employees and create a worthy culture in the office.
Therefore, check how payroll management solutions can help your business and consider hiring a payroll management company in India. This will help you streamline payroll and involve the HR department in more strategic and valuable roles, such as employee morale, motivation, and upskilling.
TopSource Worldwide is a well-known leading provider of comprehensive employer services. If you are facing challenges in managing payroll in-house, outsourcing services from TopSource Worldwide can help you mitigate issues. Connect with us for international and local payroll outsourcing services.