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Payroll Outsourcing
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Payroll Home » Compensation » Payroll Outsourcing
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An organization may employ several employees on full time, part time or contractual basis. The payroll will be different for miscellaneous employees. Here administrating payroll becomes complicated. The circumstances have given rise to payroll outsourcing.
Indian economy is booming and the globalization has giving a tough competition to organizations. Organizations can easily get their payroll systems established but it is very time consuming and needs expertise. Some organizations make use of payroll software to set up a payroll system. The software also helps in retrieving, documenting and printing the reports. Larger organizations have a separate accounts department and accounts professionals for the purpose. | |
The increasing workload, strategic roles and globalization are forcing the organizations to outsource their processes. Thus, organizations opt for payroll outsourcing, rather than setting up their own payroll systems, which provides for higher quality and low cost.
Outsourcing provides for high quality and result in cost reduction for the organization. Payroll outsourcing involves analysis of organizational data and calculation of gross salary, deductions, allowances, reimbursements and net salary.
Figure: HR Functions Outsourced (as reported by Society for Human Resource Management www.shrm.org )
According to the survey conducted by Society for Human Resource Management, 49% organizations outsource their payroll processes. With the increasing headcounts, organizations are opting for outsource services.
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