To stay in good reputation with the India Revenue Service (IRS), avoid cases of fraud or error, and maintain good relationships with its employees, every business must run an accurate, compliant payroll.
At the same time, business owners want to spend as little time and money as possible on payroll administration so they can expand their resources to increase revenue and profits.
Setting up your own payroll team and systems, or payroll outsourcing to an external service provider, there are two options for your company to achieve its goal of running a cost-effective payroll that meets IRS regulatory requirements.
There are pros and cons to both approaches. Let's take a look.
Running a Payroll in-house
Many small and medium-sized business owners prefer to handle payroll in-house because they want to keep close control of their finances and employee information and sometimes they fear of leak company data.
Pros:
- Inexpensive cloud-based payroll software provider available these days, if you already have a good admin team in place, you can often run payroll in-house for less money than you'd pay some outside provider.
- In-house, payroll gives you instant access to your data if you want any change in data you can change it.
- All process and control will be in your control.
Cons:
- Maybe you first need to train or hire people to run the payroll
- Instead of focusing on strategic growth, your financial team might spend most of its time on payroll administration.
Outsourcing the Payroll
If you and your team don't have enough hours in the day to handle payroll, outsourcing it might be a good idea. Perhaps you've only recently started hiring people and don't have the time to train someone to handle payroll, or you'd rather focus your time and resources on growing your business.
Pros:
- You'll be able to devote more time and resources to your core business.
- You can get rid of the need to train or hire payroll employees in-house.
- Payroll outsourcing can make payroll processing costs more transparent and predictable.
Cons:
- You'll need to entrust sensitive employee information to a third party.
- You won't be able to change or access your payroll information, which could cause delays and add layers of bureaucracy.
Choosing Payroll Outsourcing service provider
So, how do you choose a payroll provider if you've decided to outsource this task? The answer to this question is highly dependent on the size of your company and the level of payroll support you require.
If you own a small business, your accounting company may be able to assist you. Larger companies with larger payrolls or international operations may hire the assistance of a payroll specialist with a multinational operation.
HERE’S THE QUESTION: SHOULD YOU OUTSOURCE PAYROLL OR MANAGE IT IN HOUSE?
The simple answer is that it depends. If you have the time, process your own payroll. You will, however, be in charge of filing taxes, meeting deadlines, making adjustments, and much more. If you require assistance or do not have the budget for an in-house payroll processor, select a reputable payroll outsourcing provider. KVB Staffing Solutions provides professional payroll services having extensive industry knowledge that will help you grow your business smoothly.
Why not to try KVB Staffing Solutions Best Payroll Outsourcing Service provider in India? Get in touch today with us.