If you consider employees as valuable assets of your business, then you have to reciprocate their time and hard work by making sure they are properly compensated.
Let’s say you are running your payroll in-house and you are pretty much confident with it. But in exchange, it consumes valuable time and resources which could have been used for other administrative tasks or for decision-making. This is on top of the fact that the process is complicated and can be dreadful.
In that case, outsource your payroll to a third-party provider can be considered as a good alternative. But what does their service include? Read the answer from our discussion below:
- Payroll is your obligation to your employees
When you employ people, you are committing yourself to establishing a program that will ensure they are paid properly and on time. This payroll system also needs to have the capability to store and safeguard confidential information such as your newly hired employees’ information name, address, and ID number. It also includes contact details, salary, days off, sick days, overtime and any other compensation. Using web payroll also allows you to compute the deductions of your employees.
- Up-to-date Wage Payment Rates
Understanding wage laws is an essential part of payroll processing. You always have to comply to the amount stated by the laws placed by the government. When you switch to web payroll, everything you need is in there. You are assured that the formula and the amount stated there are all accurate. This mitigates human error.
- Payroll taxes
Employer and employee liabilities are the two types of employment taxes. Civil and criminal penalties await those who fail to comply. It is on the part of the employer to withhold and pay employee taxes along with their portion. It is also their responsibility to report their taxes with the respective agency.
Abiding the law is essential in running your business smoothly. Not complying will do you no good. So, refrain from running away or neglecting your responsibilities such as paying of taxes to avoid conflicts with the authorities.
- Record Storage and Safekeeping
Protecting confidential documents such as employment contracts, time cards and records that show deductions from and additions to wages is also vital.
With web payroll, you don’t have to keep everything in paper. Instead, you can just have a software copy of everything. They are not just easy to keep but they are also more accessible (even remotely) and can be more secured (through different security measures).
- Employee Classification System
This will help the company to clarify the definitions of employment types so that their employees understand their employment status and benefits eligibility. These classifications do not guarantee employment for any specified period of time. The right to terminate the employment relationship at will at any time is retained by both the employee and the company.
The Labor Code of the Philippines has defined several employment types based on the arrangement, relationship, and the commitment between the employer and the employee. The five common employee classifications are Regular and Casual Employment, Project Employment, Seasonal Employment, Fixed-term Employment and Probationary Employment.
Now that you have read everything above, outsourcing payroll services to a third-party provider will seem a great idea especially knowing how time-consuming and complex payroll tasks are.