Payroll Outsourcing Made Simple

Payroll is a dreaded word for many HR leaders. The time and paperwork involved is enough to make you throw your hands in the air and give up. The worst part is that the minute you’re done, you have to start all over again for the next cycle.

The good news is that payroll solutions have been around for a while; some are incredibly comprehensive and robust ensuring accuracy rates of 100%. The better news is that outsourcing payroll is as easy as pie.

The data and information handshake

Your payroll process begins with employee data. The first step in outsourcing is to hand over all employee information. This includes vital data such as Date of Joining, Base Pay, Perks & Benefits, Location, Dependents, etc. Because of the sensitive nature of the data, it’s important to work with an established partner known for security protocols.

Setting up an effective channel of communication between your database and payroll provider can ensure the relevant information is always available. Employee information must still be meticulously maintained in-house, since it is quite dynamic. By installing cross-connected ERP systems in place, there can be continuous exchange of information without any human intervention.

Time and attendance

Every organization has a unique way of registering employee time and attendance, and payroll primarily runs on this information. Some organizations may record keycards while more sophisticated systems may employ biometrics. However, even within an organization there might be disparity in time and attendance systems.

For example, a contract employee who works from home may not have constant access to your workspace. (S)he might be required to manually fill out time cards and turn them into their managers. Although the process is largely digital nowadays, these time cards still need to be processed and payments made accordingly.

Leave and attendance must also be carefully collected and provided to your payroll partner as sanitized inputs are necessary for accurate payroll processing.


Based on the location of work, and lifestyle choices of your employees, different deductions are applicable across your roster. Compliance with salary laws and constantly changing judgements is a complex task that is best handled by outsourcing.

Payment of salary

Payroll engines take the inputs of hundreds of employees and process them based on the rules and policies of your organization. Complex deductions and benefits are calculated to provide accurate outputs that can be easily processed for payments.

The final word

Reducing paperwork and time spent processing payroll, is the number one concern for most HR departments. With comprehensive payroll solutions on the market, you can avoid the bulk of paperwork, provide more for your employees and boost the overall efficiency of your business by focusing on what matters the most.

Leave A Comment

Related articles