A small business is one that operates with a limited budget and number of employees. They are also called as startups. The main characteristic of startups is that the operations and hierarchy isn’t streamlined. A few people are juggling multiple roles. It is multitasking at its best. So the question arises; how do they manage their payroll? Do they use payroll service providing companies or do it themselves?
Payroll services for small businesses
The major issue that small businesses face with managing payroll is the lack of time, resources and expertise. Most of the budding entrepreneurs are not adept with payroll policies and compliances. They also cannot afford to have a dedicated payroll department in place immediately. Hence, they are pretty much carrying out the HR duties themselves. And then there is also the time issue; the amount of time that’s required to get their business off the ground doesn’t leave enough for them to learn about the payroll regulations and laws.
So what do these small businesses do? An ideal solution would be to outsource payroll management to a proper payroll service provider. These companies are experts at payroll management and take care of the entire process for you.
The advantage to small businesses of outsourcing payroll services is immense. They can focus on growing their organization while staying compliant with tax and salary payments. They are safe from errors that can be made if they are not up to date with the latest laws. A mistake in paying taxes or salaries attracts penalties from the Government. A fine like this can put a big dent in a startup’s finances.
Having a payroll services company take care of all this is a blessing to small businesses.
Payroll services for small companies in India
Given the massive surge in the number of small businesses in India, there has naturally been an increase in the number of payroll service companies as well. If you just consider Pune, a simple internet search will give you hundreds of results. Always look for websites that look professional and credible. Those who are serious about what they do always pay attention to their websites. And always ask around. Personal reviews definitely hold more water.
Choosing a payroll services company
When you are looking to outsource your payroll services to another company, there are a few things you need to remember if you are a small business.
- Your budget. How much are you willing to spend every month on payroll management? You don’t want to choose a service provider that’s overshooting your monthly budget.
- The reputation and credibility of the company you are looking to hire. If their reputation precedes them as bad, then you should be aware of it.
- Their knowledge of payroll and its compliances. Do they know about the taxation and labour laws in India?
- Do they take responsibility for errors? If the company does not take any responsibility for errors made in tax filing or calculation on their part, then that’s not a good thing.
The next thing to consider is which payroll option works for you. Would an online payroll service work? Should you select an exclusive payroll software or a combination with an accounting or HR software? There are different kinds of payroll services available. Check for the one you need.