We have been using the Payroll Outsourcing services of Remunance since April 2008. We have a team of 50 employees located at 2 branches, Mumbai & Pune. – Even though we are a SME we are extremely satisfied with the services we are getting from EXL. The services are timely, accurate, flexible to adapt to changes and personalized – Palak Jhunjhunwala – Head of Business.
Payroll Service provider is very important for small businesses today. The services provided by this service provider, generally ranges from processing of payroll works to managing the custody of the payroll of an employer. The processes that come within this segment are withholding, net paying and computing the employee’s salary. Also, printing the checks, preparing payroll reports for management and planning and preparing payroll tax returns, also fall in their work category.
Because of the constant changes in tax regulations, companies often make mistakes in tax and salary calculations. These services help to file federal and state payroll taxes for business of small and medium magnitudes. Thus, knowing the latest tax code becomes easy. Other beneficial activities include deposit requirements, filing deadlines, government forms or payroll software version, and tax tables.
Tax penalties are often filled by small business for late and incorrect filings, which increase the company’s expenses by quite an amount. Payroll providers try to provide a tax guarantee. This will help customers to incur no expenses related to penalties and fines that occur every time. Thus, the utility of outsourcing payroll can be totally justified. But, the payroll company’s charges for interest while taking charge of tax penalties.
The expertise of a patrol company is difficult to incorporate within a business framework. If the emp0loyees of a company are asked to manage payroll, then the costs will surmount and lead to financial imbalance. If payroll outsourcing is done and the activities are leveraged to another firm, then the employees can use the saved time, by devoting it more revenue-generating and value-based activities. It is the best favor that a small business should do to itself. Since, payroll is highly time-consuming, a business and its employees can use their expertise and time in focusing on more productive activities.
Offering reports in the form of summaries to earning statements is the primary work of payroll firms. Timesheets, expenses, and various other reports are made and maintained by these service providers. The problem with these service providers is that the custody that they take for payroll cash of the employer’s, is not always put to use for a particular purpose. The funds earmarked for the purpose of payroll payments, may get embezzled by the principles of PSP, which they can cover later with the amounts withdrawn from the wages of the employees.