Salary Outsourcing Services

salary-outsourcing-services
salary-outsourcing-services

Salary Outsourcing Services

Salary Outsourcing services is very popular nowadays adopting by the MSMEs, startups, mid-level, upper midlevel companies and organizations to cut the HR and payroll cost and to take a full benefits and advantage of the salary outsourcing services without involving or engaging their core line executives.

Commonly salary outsourcing services called as Payroll Outsourcing services also. In this topic we talked about below main points:

  1. Benefits of salary outsourcing services
  2. What are the average cost or price per employee or lump sum for salary processing services
  3. What are the ideal scope of work to be check and incorporated in the payroll outsourcing services
  4. What are the qualities of good service provider for wages outsourcing services
  5. Comparison in house salary processing and salary processing thru outsourcing services
  6.  What more additional of HR services can be asked to vendor to add with salary outsourcing services
  7. Conclusion.

1. Benefits of payroll outsourcing services

benefits-outsourcing-services
Benefits-of-salary-outsourcing-services
  1. Cut the Cost: The very first benefit of payroll outsourcing service is to cut the salary processing or payroll processing cost. When companies does it in house they need to hire a dedicated one or two payroll officer or executive who will do this job full day and related works. But for a small or mid-size level company can do cut this cost just near to half to adopt system of salary outsourcing services.
  2. Confidentiality:  Peoples and companies are much concern about their salary package confidentiality. In house salary processing chances to break confidentiality because it’s a human nature that in-house peoples can break this to maintain their official relations or friendship but once this work outsourced there is very less chances to break the confidentiality as compare to in-house salary processing.   

2. What are the average cost or price per employee or lump sum for wages outsourcing services.

salary-outsourcing-services-cost
cost-of-salary-outsourcing-services

There is various service providers of wages outsourcing services in India and their rates vary place to place and according to standard services but I try to mention an average prices according to services and employee strength.

SERVICE DESCRIPTIONBest for MSME and start-upsbest for mid cap organizationscan be opt out by any, est for all
based on 1 to 50 employeebased on 51 to 100 employeesbased on 100 and above employees
Rs. 50 per employee (min monthly billing Rs 2500)Rs.100 per employee (min monthly  billing Rs 5000)Rs. 150 per employee (min monthly billing Rs 10000)
Paperless Employee on boarding Employee soft master file oration and maintain hire and retire complete record.NOYESYES
Monthly pay sheet/ wage sheet preparationYESYESYES
monthly pay slip generation and email to employeesYESYESYES
employee log in portal to view pay slip , mark attendence etc.NONOYES
Monthly Bank letter generation for salary disbutmentYESYESYES
Monthly PF challan creation and upload EPFO siteYESYESYES
Handling complete ESIC Portal work, Registeration new employee and his family members, alloting dispensary, generating TIC cards and sent to employees and half early returns etc.YESYESYES
full and final settelment preparationYESYESYES
24*7 employee grievance handling/helpdesk systemNOYESYES
bonus calculation and yearly Bonus return NOYESYES
Gratuity calculaton and recordsNOYESYES
minimum wage act and recordsNOYESYES
payment of wages act and recordsNONOYES
standardization letters- Appointment letter, offer letter, increment letter etcNONOYES
annual increment calculation and letter generation, grade wise salary structure preparationNOYESYES
Form 16 and employee TDS complianceNOYESYES
attandance mappingNONOYES

3. What are the ideal scope of work to be check and incorporated in the Payroll outsourcing services.

scope-of-work-outsourcing-services
scope-of-work-salary-outsourcing

Once you decided to take the services for your payroll processing outsourcing you should check the below ideal services from any vendor of payroll outsourcing services service provider.

  1. Monthly paysheet/salary sheet or wage sheet preparation and provided having mandatory fields as per act and rules.
  2. A good and presentable payslip with company logo providing regular monthly basis to directly employees email id or to the authorized person of the company.
  3. Monthly Bank payment disbursement sheet
  4. Monthly PF ECR generation and challan preparation
  5. Monthly ESIC challan generation
  6. Regular basis new employee enrollment into epfo and esic site
  7. Employees support for PF, esic and other payroll related issues.
  8. Regular annual statutory returns related to bonus, gratuity etc.

Apart from above Company can ask to service providers of payroll outsourcing services to provide some additional services which relates to day to day HR operations like

  1. Employees on boarding documentation
  2. Appointment and offer letter issuance with preparing salary package or ctc structure
  3. Annual appraisal letter with increment letter
  4. Increment calculation
  5. Form 16 of employees and tds support
  6. ESS system for employees

4. What are the qualities of good service provider for outsourcing services.

qualities-of-outsourcing-services
quality-services-salary-outsourcing

Below are few good qualities should be in an ideal service provider of salary outsourcing services.

  1. Proactively update to the companies about beneficiaries Govt. schemes of the government.
  2. Timely fulfil the clients requirement
  3. On time and accurate reports and statement provided to the clients.
  4. Standard base information sheet to be ask from clients having all important fields
  5. Proper monthly salary reconciliation.
  6. Monthly MIS report
  7. A good service support to company as well as handling promptly employee’s grievance and resolved in the quick time duration.

5. Comparison in house salary processing and salary processing thru outsourcing vendors.

comparison-outsourcing-services
comparision-salary-outsouring-services
In-house salary processingPayroll outsourcing services
Higher CostLower cost
Employee retention issueNo issue for employee retention, as always work going on whether any employee left or joined
Lack of expertiseService provider has a team of experts can provided up dated and accurate services
Issues of confidentialitiesConfidentiality more assured
Lack of maker checker and chances of errorsVery less chances of error as mechanism of maker and checker
Chances of mis-dates of compliance or overdue the datesNo chances of mis-dates.

6. What more additional of HR services can be asked to vendor to add with Payroll Processing services.

Apart from regular scope of work covered in salary outsourcing servicing, companies can add some more HR services from the service provider of Payroll outsourcing services with some minimum extra cost like:

  • Employee end to end records maintain complete life cycle hire to retire
  • Maintain regular labor compliance records and registers
  • Audit of contractors compliances
  • Other HR related works.

Conclusion.

conclusion-salary-outsourcing-services
conclusion-salary-outsourcing-services

Salary outsourcing services recommended only as a suggestion this is only companies sole discretion to go with in house payroll processing or outsourced their payroll thru a wages outsourcing services companies. Though, we suggest for a small, startup, middle and top middle companies those have company employees strength 1 to 500 should be outsource their salary processing system partly or whole with HR operation system.

want to know about new wage code please read thru below link:

http://kashyapshrsolutions.com/https-kashyapshrsolutions-com-employees-salary-structure-need-to-be-revised-new-wage-code/

If you want to know about PF UAN related issues. click on below link

Leave a Comment

Your email address will not be published. Required fields are marked *