How do Payroll Outsourcing Services Assist your Business?

Although a non-core activity, payroll processing is a crucial business function for an enterprise. Handing a company’s payroll process needs the HR team to manage different vendors. There’s a lot for them to consider- onboarding, business administration, leave & attendance management, timely payroll processing, and other administrative tasks.

Payroll processing may seem mundane, complicated, and time-consuming. Additionally, staying on top of the ever-changing labor laws & regulations can be daunting for any business. Thus, companies may select payroll outsourcing services to ensure that their in-house team is productive and capable of focusing on core business functions.

What is Meant by Payroll Outsourcing?

Companies like Voyager Partners have been offering payroll outsourcing and HR services with expertise in managing payroll processing and simplifying end-to-end payroll management.

It is defined as payroll outsourcing when an enterprise delegates a small portion or even the entire payroll operations to a third party. Third-party vendors assist with full-service providers in addition to running payroll, data security, regulatory compliance, tax reporting, and unemployment claims.

Outsourcing helps far-reaching expertise to take your organization to the next level. Payroll management outsourcing leverages the knowledge and expertise for designing innovative and scalable payroll solutions.

“Companies are past the basics of talking about outsourcing and offshoring. Executives understand outsourcing now and want to know how to effectively use it in their organizations.”

-Jagdish Dalal, CEO of Corporate Affairs

What are the Features of Payroll Outsourcing Services?

Payroll is every business’s central function, and accurate payroll & HR management is essential for every organization to retain its employees. Third-party payroll outsourcing companies provide featured solutions. These allow enterprises to seamlessly manage HR, recruitment, legal, or admin processes to enable more focus on business growth.

Some features of payroll processing outsourcing include:

• On-the-Go Payroll Solutions:

Managing in-house payroll operations can be complex. Therefore, third-party service providers provide innovative and scalable solutions for managing payroll operations with increased effectiveness and efficiency.

Service providers help with tax filings, on-time payroll processing, investment-proof verification, reporting, expense management, data collection, and more.

• Greater Self-Service:

The payroll management system helps organizations improve the employee experience through the self-service modules to receive information on the go.

The self-service module provides access to payroll data, download payslips, and paid time-off, select tax regimes, and update investment declarations. Employee self-service offers a flexible compensation structure for changing predefined components and restricted self-record access. Thus, payroll processing service providers assure employees to be paid off accurately and timely, meeting statutory compliances.

The global payroll outsourcing market is valued at $9.9 billion in 2021 and is expected to reach $19.5 billion by the year 2031. This means that it’s growing at a CAGR of 7.2% from 2022 to 2031.

• Statutory Filing:

Third-party payroll processing helps enterprises remain compliant with filing-related laws and compliances. The service provided by these enterprises includes a provident fund, labor welfare fund, ESIC, and professional tax.

Some other features of payroll outsourcing management include EOR/PEO Companies and leave and attendance management, among many others.

What are the Pros of Payroll Outsourcing Management?

Payroll outsourcing services help businesses leverage professional expertise at cost-efficient prices for payroll & HR management. The experts reallocate their internal resources to manage the core business functions.

“Do what you do best and outsource the rest.”

-Peter Drucker – Management Consultant, Educator, and Author

Some of the most popular advantages of outsourcing payroll to a third-party service provider include:

• Saves Time and Costs:

Payroll processing is complex, time-consuming, and involves a significant amount of administrative work like managing leaves & attendance, employee data, grievance management, and error-free payroll calculation. Additionally, these activities help save time for the core business operation, improving business efficiency and reducing costs.

“Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower-cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation.”

-Larry Elder – American radio commentator

Outsourcing payroll prevents businesses from indulging in non-essential tasks, improves accuracy, and minimizes errors. Furthermore, payroll outsourcing services help business owners cater to strategic areas.

• Staying Compliant:

Businesses need to adhere to specific laws and regulations. Non-compliance may lead to litigations and penalties. Thereby, statutory compliance is another advantage organizations get by outsourcing their payroll processes.

Professional payroll processing and HR service providers have a well-structured team familiar with numerous rules & regulations related to statutory compliance for diverse industries and countries. Resultantly, payroll services providers assist organizations in meeting regulatory laws and avoiding fines & penalties.

• An Experienced Team of Professionals:

Payroll processing companies have well-experienced and dedicated staff who work 24/7 (round the clock) to ensure superior customer service and technical support. Additionally, the payroll specialists help avoid payroll mistakes and ensure accuracy & precision.

• Streamlined HR Services:

Service providers offer end-to-end payroll management services as they help enterprises streamline payroll and HR functions through payroll automation. Specialists provide services for handling compliances and complexities, helping with timely and accurate payroll processing, and saving costs, time, and information leakage.

Companies that outsource HR can save an average of 27.2%

• NAPEO

• Enhanced Focus on Core Business Activities:

Although payroll processing is a non-core function, managers still consider it cumbersome and time-consuming. They exclaim it takes a lot of effort and time; the HR department may focus on strategic areas. Outsourcing payroll brings time for businesses to reallocate resources to focus on business expansion and formulating strategies.

“Enabling focus on core functions” is the most common perceived benefit among companies that use outsourcing.”

 -Deloitte

All these benefits point to the simplicity of performing payroll processing while helping the management focus on activities that bring revenue and foster growth and revenue.

• Reap the Benefits of the Latest Technology:

We live in a technological world with new generations becoming digital natives. However, still, some companies aren’t at par with the changing technology.

Subcontracting your payroll to a company guarantees the enterprise to be up-to-date with technology and cybernetic security, confirming that the services and platforms are secure, disaster-proof, and accessible. Furthermore, the analysis is made up of digital processes and strategies that enable the company to operate smoothly.

The Conclusion

Outsourcing payroll helps management save time and money without having to spend long hours on administrative work. Full-service payroll providers flexible pay options and boost employee satisfaction. Additionally, payroll outsourcing costs depend on frequency, employee headcount, and outsourced services.

At Voyager Partners, we make it easy for companies to onboard staff and pay employees faster. Our payroll processing services are best-in-the market as we bring decades of experience and a reliable track record of success to your payroll operations. And the best part is that our processes and systems are designed to work with the best-in-class technology.