Payroll processing refers to the process wherein the total payment to be made to the employees of the organization needs to be calculated and the same has to be paid to the credit of employee’s bank account on or before the salary processing date. This process of maintaining and processing the payroll seems easy at the initial stage of business, but as it grows, all the complexities start creeping in. Whereas employees have been treated as the assets of the organization, it is important from the organization’s perspective to adhere to it because if the employees are happy, only then the employer can be happy.
Dubai is the hub of international business entities, making it mandatory for every company to have payroll services. Thus giving rise to outsourced payroll services.
Payroll Outsourcing in the UAE
Being a tax-free economy, it is often a misconception in the minds of people that payroll management in the UAE is easyas compared to other countries, but it is not that simple as it appears. The Emirates is a home to more than 200 million expats and tha
The benefits of outsourcing payroll processing to an external third party are as follows:
1. Time Saving:
Professionals who are involved in payroll processing services would require lesser time as compared to untrained employees trying to maintain the complex payroll records.
2. Lesser Overhead Costs:
Training the in-house staff regarding the requirements of payroll processing and then processing the payroll involves a higher cost from the organization’s perspective. So, the best option turns out to outsource the payroll to an external third party.
3. Improved Data Security:
The data security is maintained at a higher level by the outsourced agency rather than the in-house staff of the organization.
4. Compliance with Local laws:
As the whole payroll processing function is being handled by professionals, the local laws are complied appropriately.
5. Reduced Burden:
Since the payroll processing activity is being outsourced to external third party, the organization does not need to focus on these activities and hence the organizations can focus on their core business activities.
6. Minimal Chance of Error:
The chances of mistakes in the payroll books made by professionals will be way far less as compared to the one prepared by the in-house team. Even if it is found it will be rectified immediately.
The aforementioned benefits not only help your business to grow, but also improve its goodwill.
Steps to outsource its payroll processing service to payroll professionals -
Once it has been decided by the organization to outsource payroll processing activity to payroll professionals, then it needs to follow the steps as stated below:
1. Determine Your Needs:
You need to be very clear while defining your needs to an external service provider. At this point, you should also understand whether the service provider will be able to cater to the needs stated by you.
2. Provide the required details:
In order to carry out a hassle-free payroll process, it becomes very important that you provide the complete set of documents to the external service provider.
The payroll outsourcing activity must be planned well i.e. both the service provider and the organization must be involved in this activity to avoid glitches at the time of actual execution to either of the parties.
Once the framework is completed and services are delivered, you must evaluate and cross check whether the objectives decided by you are being met.
Be it a small or large enterprise, one should initiate a step forward and outsource the payroll service. In case of a large business entity, it will help to minimize the chaos that might occur between the employees and the organization. Similarly, for small entities, it will help to expand and meet the ultimate business goals.