When setting up a company in Oman, there are many services required such as visa,tax etc., but one of the most important services is the payroll services. Payroll refers to the number of people employed by the business and the total amount of remuneration owed to them for a set period or on a given date. Initially, companies used to process the payroll all by themselves because the consensus was that it would be cost effective and would also provide control over the data in case of any last minute changes. However, gradually companies are discovering that the in house process is not cheap, especially if the time consumed by the process is taken into consideration.
This has led to the outsourcing of the payroll services as it has many benefits for the business. Let’s understand what it is all about and the benefits it provides:
What is the Outsourcing of Payroll Services?
Payroll is one of the most important functions which is to be performed by business. It is considered as a non-core function which means that there is no separate charge for this process. Businesses, nowadays, hire an outsideentity which takes care of all the payroll functions. The amount of services provided by a payroll service provider also varies according to the number of employees and the type of service chosen by the company. More and more businesses have started to hire the services of a payroll firm as they provide some of advantages to the business.
Advantages of Outsourcing Payroll Service
The benefits range from an increase in productivity to a high level of expertise. Let’s have an in-depth look at what are the advantages offered by this service:
1.Increase in Productivity
Performing the payroll process in-house is a time-consuming process. The complexity and the number of employees directly affect the consumption of time by this process. It is tough to keep a track all the new hires, terminations and also any amendments in the federal and state laws, etc. which a business must follow. Moreover, great attention to details has to be given as one small error may cause many problems for the company. It is a repetitive chore which is to be performed every month and takes up much precious time of the employer. The outsourcing of payroll will free up the time invested by the employers and will help them to concentrate on the development of the business.
2.Reduction in Costs
Big business may afford to keep an in-house payroll department, but for smaller, to medium-sized businesses, an in-house payroll department is a very cost-intensive idea. The cost of having a department for payroll would require their own set of budget, also the hiring, training; infrastructure cost would make this option a very costly one.Outsourcing payroll will be a feasible option if the number of employees in your company is less than fifty.
Government laws and rules are very dynamic and always keep changing, and the business can’t be expected to understand every single change. Even a small mistake by the misinterpretation of the rules can lead to penalties and or late tax filing. An outsourced payroll service provider has a dedicated staff who will not only ensure the business is in compliance with the laws but will also provide with the current and relevant information to the business. This would significantly reduce the chances of any sort of error or non-compliance by the business and will also help in the accounting and bookkeeping of the company
A payroll outsourcing firm consists of experts in a particular field and can provide expert and relevant advice to the business. This expertise comes by only focusing on the payroll services of the company. The people in the outsourcing firm continually research and study upon the regulations and understand every possible dimension of the law. This expertise can be beneficial to the business.
5.Sense of Security
With in-house payroll services, there is a risk of embezzlement, identity theft, tampering of company files etc. With outsourcing firms, the chances of this happening are very less as their advanced and dedicated technologies have many built-in fail-safes which can alert the client to any fraud. They also provide backups, multiple server locations and state of the art store systems to ensure complete security to the data of the clients.
6.Human Resource Information System (HRIS System)
Many firms waste a considerable amount of resources trying to manage the various human resource tasks all by themselves. By utilising the services of a payroll company equipped with an HRIS system allows businessesto use this platform without paying for it. HRIS Systems enable the companies to work in a more cost-efficient manner and also offersa vast amount of relevant information using which the company can develop itself.
7.Peace of Mind
When the tedious job of managing the payroll is outsourced, the employer is released from the frustrations and the complications associated with the payroll process. You only need to provide the fundamental information and the rest is taken care of by the payroll firm. With the guarantees of error-free payroll and easy tax filings, the business owner can focus appropriately on the developmental activities of the business.
Payroll outsourcing will not only save your time and money but also will provide you with peace of mind. You will receive comprehensive reports and the expertise of the professionals. Not to mention the extra time and money which will be focused on other developmental activities of the business. The wide range of benefits has convinced thousands of companies to switch to an outsourced payroll solution instead of keeping an in-house payroll department.
We at Business Setup Worldwide help entrepreneurs and investors establish their company in Oman through incorporation, registration and legal consulting services. Our advisors take care of the entire Banking, Visa, Legal, and Licensing formalities, per under the regional law. For any help regarding the legal formalities of your company do contact us – we’d be happy to help.