Managing payroll is a core business function – it's not just about making sure salaries are transferred to employees. It involves accurate salary computation, correct deduction calculation, employee data management, preparation of payslips, payroll records and attention to relevant and applicable statutory requirements.

Businesses can outsource their payroll duties to S C Bhagat & Co., India's payroll outsourcing services provider, to ensure that these tasks are managed in a structured and organised manner. We focus on both payroll administration and accounting and compliance awareness, to facilitate effective business operation.

From start-ups setting up their payroll system, to growing companies handling larger employee counts, or established organisations seeking to offload repetitive payroll duties, we can help you determine the right payroll management solution for your business needs.

Overall, we aim to make payroll more efficient, reduce administrative burden, and ensure payroll is processed in a timely manner with a consistent monthly workflow.

Comprehensive Payroll Processing and Outsourcing Solutions

1. Payroll Processing Services: We help with monthly payroll calculations from employee records, salary structures, attendance data, approved leave, overtime etc. applicable payroll data. We have designed our process to ensure consistent salary calculations and timely payroll preparation.
2. Payroll Statutory Compliance: We assist your workforce on compliance activities that relate to payroll such as Provident Fund (PF), Employee State Insurance (ESI), Tax Deducted at Source (TDS), professional tax (as applicable), other related statutory deductions and reporting aspects.
3. Salary Slips and Payroll Reports: We assist in the preparation of employee payslips, salary statements, payroll summaries and other agreed upon payroll reports. Good documentation also allows employees to understand their gross pay, deductions and benefits, and it provides management with visibility of payroll expenses.
4. Employee Payroll Data Management: We assist in keeping all employee payroll information such as salary components, employee changes, joining/exiting information and other authorised payroll changes up to date.
5. Leave, Attendance and Variable Pay Inputs: Attendance, leave, incentives, reimbursements and other variable-pays will be included in the payroll calculations within the scope of work, in accordance with the records provided by your organisation and the agreed scope.
6. Payroll Accounting and Reconciliation Support: We assist in arranging payroll summaries and accounting data to aid in the recording of salary expense, deductions and reconciling with your finance/ accounting team.
7. Full and Final Settlement Support: We can provide services for final salary calculations for departing employees, including the incorporation of applicable unpaid salary, leave encashments, recoveries, deductions and other elements of the settlement, in accordance with company policy and applicable law.

Why Choose Payroll Outsourcing for Your Business?

Outsourcing payroll can help businesses simplify recurring administrative tasks while improving the consistency of their payroll processes.

• Reduce Administrative Workload: Save time on processing payroll information, calculating payroll and creating regular salary reports.
• Support Payroll Accuracy: Implement a structured payroll process with clear employee data, checkpoints for review and documented processes.
• Manage Payroll Compliance Requirements: Determine statutory deductions, filing and due dates for your establishment, staff and laws.
• Improve Payroll Recordkeeping: Keep tidy payroll statements and back-up information to support internal review, reconciliation and business reporting.
• Scale With Changing Workforce Needs: Adjust payroll procedures to suit the changing number of employees or the evolution of salary bands and business needs.
• Let Your Team Focus on Core Operations: Free up internal HR and finance capacity for recruitment, employee engagement, financial planning and business growth.

Our Payroll Outsourcing Process

1. Understand Your Requirements: Reconsider staffing levels, compensation levels, payroll cycle and legal requirements.
2. Collect and Validate Payroll Inputs: Handle employee records, attendance, leave, variable pay and approved changes.
3. Calculate Monthly Payroll: Calculate process earnings, deductions, reimbursements and net salary calculations.
4. Review Payroll and Prepare Reports: Check payroll outputs and prepare agreed payslips, summaries and supporting reports.
5. Coordinate Payroll Finalisation: Align approved payroll outputs, payment directions and relevant compliance actions based on scope of engagement.
6. Maintain Records and Support Queries: Maintain agreed payroll documentation, and respond to payroll related enquiries in a timely manner in line with the agreed process.

Payroll Outsourcing for Different Types of Businesses

Our payroll outsourcing model can be customized according to the needs of various organizations, depending on the scope of services agreed on.

• Startups and Small Businesses: Set up a structured payroll procedure without having to create all payroll administration jobs in-house.
• Growing and Mid-Sized Companies: Handle the growing workforce as well as variable payrolls and reoccurring payroll needs more effectively.
• Established Enterprises: Enable well organized payroll processes, reporting and coordination among HR, finance and management functions.
• Companies Hiring Across Indian States: Coordinate payroll requirements across locations while accounting for applicable state-specific rules and establishment-level obligations.

In-House Payroll vs Payroll Outsourcing

Which approach is right for your business? The in-house payroll systems may be suitable for business firms that have established their internal payroll departments and specialized systems for this purpose. The payroll outsourcing solutions can be beneficial for companies that would like to decrease their routine administrative tasks, acquire some external support, and set up a steady processing system.

Why SCBC? A Professional Partner

S C Bhagat & Co. is a professionally managed chartered accountant organization which provides a host of services in audit, management consultancy, taxation, accountancy, and related business support functions.

Payroll integrates employee pay with bookkeeping, tax deductions and legal obligations. By engaging with a professional services company, businesses can manage these interrelated needs in an efficient manner. If you involve SCBC in payroll outsourcing, the services that are offered can be aligned to your business requirements, payroll frequency, employee data process and reporting requirements.

• Business-specific approach: Payroll workflow – tailored to your business needs.
• Accounting coordination: Payroll information organised to support relevant accounting processes.
• Compliance awareness: Focus on applicable statutory requirements relating to payroll.
• Structured reporting: Payroll summaries and supporting documentation that have been agreed.
• Professional coordination: A clearly outlined governance framework for inputting data, monitoring the output work and addressing payroll issues.

Payroll Compliance Services in India

Companies in India need to understand and handle payroll related statutory duties based on the applicable laws, employee eligibility, establishment registrations, etc. Depending on the scope and agreed scope of work, a payroll compliance support might involve:

• In the case of Provident Fund (EPF) calculations and processes, where applicable.
• Where applicable, the employees' State Insurance (ESI) calculations and processes.
• Tax Deducted at Source (TDS) on Salary including applicable calculation & reporting.
• Professional tax requirements (if any) in states.
• Where applicable, requirements of labour welfare funds.
• Support with salary registers, payroll records and other documentation.
• Where applicable, coordination of relevant payroll returns, remittances and deadlines for payroll.
• Review of salary structures and deductions on the basis of relevant requirements.

Note: The applicability of these requirements varies by establishment, employee eligibility, location and the law in force. While payroll outsourcing may help in the compliance process, it doesn't remove all legal obligations from the employer's shoulders and place them on the service provider's shoulders.

FAQs | Payroll Outsourcing Services in India