What is payroll processing?
Small business payroll processing refers to the process performed by companies to pay its employees, mostly on a set date every month. This is a very complex and a sensitive process as it deals with the salaries of the employees. The process cannot be performed hastily as the consequences can be grave due to employee dissatisfaction and can even result in penalties for the paymaster.
The typical process of payroll involves the following steps:
- Gather the payroll information from employee timesheets for each pay period
- Salary and perks Calculation
- Deduction Computation
- Salary Disbursement
- Employee Payslip Disbursement
Typical Payroll Process
Why do companies need payroll processing?
If this process looks intricate and challenging, there is actually much more to that! It is not only complicated but also a resource-draining process. Companies need a robust and a matured payroll team to manage the payroll process. What makes this process more complex, that it involves construing the local laws and regulations of the country. It may also involve calculation of individual employee income tax and other wage garnishments for the employee like bonus, allowances, perks etc. This is exactly the reason why companies prefer outsourcing their payroll to an experienced payroll company.
Reasons why you should outsource your payroll to a payroll service provider
- Focus on your business – Outsourcing the significant but cumbersome administrative payroll operations tasks to a mature payroll processing outsourcing company like NNRoad allows you to focus on your core business. As a result, it can boost your company’s performance as it liberates your team off the time-consuming administrative tasks.
- Better Employee Service – Start-up or small companies have single HR person or very small HR team, which makes good employee service a challenge. High employee turnover rate of your payroll team may also influence your company’s monthly payroll processing outsourcing. It can be very difficult to offer your employees the same level of service and flexibility that a mature payroll processing outsourcing company offers in payroll processing services, transactions and preparing the related reports. An experienced payroll processing for small business company has the capacity not only to answer your employee’s questions about the payroll calculations but also the latest regulations and provide expert guidance. Most payroll processing companies for small businesses offer an access to the payroll system for the employees to easily check their attendance records and access their payslips.
- Saves Time – Small and medium-sized enterprises don’t have a huge employee strength and generally have an employee strength of less than 300. Many companies prefer to test the waters by establishing a Representative office in a country they are newly entering and stationing a sales team to estimate if the business is profitable or not. Outsourcing your payroll helps small companies focus on their core business objectives, leaving the rest of the work to the payroll service provider.
- Saves Money – Small and medium-sized enterprises can save money by cutting costs on the resource requirement for a payroll team to maintain payroll, tax and insurance documents. It is much cost effective to outsource your payroll instead of hiring an internal HR team unless the local presence of the company is huge and have a long-term business plan in the country.
- Functional Expertise – A professional payroll processing outsourcing company hires employees who are payroll experts. Not only this but good payroll processing companies also attach a lot of importance to regular training and development of their payroll processing team. Thus, outsourcing your payroll has been proven to be more efficient, cheaper and easier.
- Saves Resources – Managing outsourcing payroll processing internally requires the purchase of necessary hardware and payroll systems or software (and extensive training to use it), experienced human resources, data security measures etc. In addition, companies need to be up to date with policy updates and process updates with respect to deadlines, regulations etc. on a continuous basis. Since it is their core business, payroll processing companies have established processes to handle this at ease.
What kind of companies should outsource their payroll
- Small and medium sized enterprises who prefer keeping limited employee strength
- Representative offices who want to test their business in a new geography
- Foreign companies with sales offices who want to test their business in a new geography
- Companies who prefer focusing on their core business operations
NNRoad Payroll Service Details
NNRoad offers global payroll processing services which can be customized and cost effective. NNRoad’ s core expertise offers end-to-end payroll management solutions to foreign small and medium-sized enterprises worldwide. Regardless of your company size or requirements – be it full corporate payroll processing services or limited processing services, we can efficiently and securely manage your payroll saving you time and huge costs.
NNRoad Payroll Service Scope
NNRoad Service Highlights
- NNRoad specializes in small-sized and medium-sized clients
- NNRoad specializes in providing services across 15+ countries
- NNRoad also offers local language support for certain countries
- NNRoad provides services across all industry verticals
- More than 12 years of core robust payroll experience
- NNRoad offers customized service options
- NNRoad offers full flexibility for our clients to transact in local currency or US Dollars
NNRoad Service Country Coverage
- Mainland China
- Hong Kong
- South Korea
The process of hiring a payroll processing provider
The process of hiring a payroll processing provider begins with the search for the right vendor. It is vital for your company to find the right payroll service providers for your company. To avoid any communication barriers, it is important for you to find a service provider which can offer multiple language support for customer service, consultation, contracts, reports etc. If you are a small-sized or medium-sized company then, it is important to choose a payroll service provider which specializes in small-sized and medium-sized clients for better customer service and value. An Established payroll service providers can make the process quite swift and easy for your company. NNRoad can complete the implementation of a new payroll swiftly in few day’ s time.
NNRoad Payroll Service Fee Structure
NNRoad Payroll Service Fee Structure is different for different geographies. To generalize, the service fee has the following structure:
- Set-up Fee
- Monthly Processing Charges per headcount
- Relative Local Taxes
If you are interested to know more about the small business payroll processing services details and calculation, please write to us at Info@NNRoad.com and we will come back with a solution very soon!