Businesspeople expanding into a new market or territory must take many business tasks and aspects into consideration, including sales, business law, and human resource. However, when working in a foreign market, getting to grips with local regulations can be challenging. Executives with operations in different countries and markets have to deal with varying approaches of doing business and managing staff. They don't just have to support the new business, but also have to navigate statutes, red tape, the ever-changing laws and guidelines. One of the ways through which this is avoidable when expanding your operations overseas is to outsource services. In this article, we are going to discuss on outsourcing payroll services.
Companies often originally process payroll themselves for any number of the following reasons;
- they consider in-house processing to be more economical than outsourcing
- they are shielding wage data
- they want to keep authority over payroll data to handle last-minute changes
From the mentioned points, it is clear that outsourcing payroll ideally achieves three important goals:
- It frees up time and supplies to focus more on your core business
- It reduces costs and risks
- It gives you entrance to more technology and expertise to perform payroll well
Although there are many small businesses, who after incorporating a company in Dubai may go to handle payroll internally, there are a number of advantages for you and your business if you decide to outsource your payroll to a knowledgeable and reputable payroll vendor. Summarized below are the key factors for outsourcing payroll services in Dubai and why it makes sense for an entity.
Most outsourced payroll providers charge on a per-employee-per-month basis. Some providers ask for a minimum fee irrespective of the number of employees. The outsourced cost to the entity is therefore minimal, especially if the number of employees is below 25 and the comparative cost of hiring a full-time employee is much higher.
If the job-giver has done their homework on researching a good payroll service, then they should have equanimity in knowing that their payroll services are handled effectively and efficiently so they can avoid penalties and interest being assessed on their payroll.
There are both internal and external menaces to the security of the payroll data of your company. Internal threats are employees who, with access to the employer's personal data, can engage in identity theft or otherwise tamper with company data for personal benefit. External threats are even more dangerous; any security flaw opens the door to hackers who can steal data for criminal use. Hence, when you employ an individual for payroll services, your data is stored on highly-secure servers that employ state-of-the-art encryption technology and redundant backups. Matching that level of security in-house is generally too expensive for most businesses.
4. Access to Other Specialized Services
Many outsourcing organizations are able to offer payroll services on top a variety of other solutions like compensation, health benefits, and human resource support. Hence, this can actually benefit your company as you will get additional and specialized services at low cost. Distinguish the services most relevant to your needs and find a provider that delivers those services or one that will allow you to customize a plan based on your specific needs.
5. Concentration on Main Priorities
Perfectly handling payroll in-house is time absorbing, and accuracy is important. Your company needs accurate reporting employee classification, overtime payments, employment taxes, garnishes and duties. The more your business grows, extending the size of your workforce, the more time-consuming payroll becomes.
Outsourcing Payroll in Dubai can save time from all the challenges of changing rules, doing individual payroll calculations and having to answer your employees every day questions about their payroll. You get extensive reports, direct access to payroll specialists, and save time and money in the process. It also results in having a greater peace of mind, and more time to focus on the business.
Such wide range of advantages has convinced thousands of companies to switch to an outsourced payroll solution.
So who are you waiting for? Look for a good payroll outsourcing firm, and get started with it today!
Apart from business setup services in Dubai, we at Business Setup Worldwide offer hassle free, one stop shop service for outsourcing your payroll services. Contact us today- we’d be happy to help you.