Question

computing and reporting of payroll are very complex processes. Some companies choose to handle these computations and the associated reporting internally while other companies prefer to outsource these payroll functions to a third party.

Answer the following questions:

1.Research a payroll processing/outsourcing firm. Report the name of the firm and describe some of the functions this firm can perform for a company. Include a link to the firm's website.

2.Based on what you've learned in this chapter and using credible Internet sources, what are the pros and cons of outsourcing a company's payroll function?

3. Do you believe it is better to outsource a company's payroll functions or perform those functions internally? Why?

Answer 1

							https://www.adp.in/services/payroll-outsourcing
	1	Name of the Outsourcing Firm - ADP India
		The firm's major Outsourcing functions for companies are listed below:
		a) Processing Monthly Salaries (based on latest legislative updates, processing Investment declarations of your new joins & updating on your HRIS,Providing with consolidated reports (Standard & Customised)).
		b) Payroll Compliances (Ensure accurate processing of Statutory Compliances through a global leader in payroll & compliance- Such as Provident Fund,Employee State Insurance,Professional Tax,Labour Welfare fund etc.,
		C) Provides consolidated monthly reports and challans of remittances,Furthermore provides assistance with consolidated information during audits & Inspections.
		d) Processing Reimbursements and Arrears (Our experts ensure day to day maintenance of your arrear registers & maintain consolidated arrear computation reports for assistance during audits.
		e) Employee Query management (Our query management team is responsive,considerate of contextual urgencies & ensure swift resolution of queries.
		f) Full & Final settlement (Our operational specialists are also Industry experts who understand all the intricacies involved in the full & final settlement process.
		g) Quarterly Returns filing (Our internal reconciliation process is comprehensive and ensures maximum accuracy with regard to taxes deducted)
		h) Flexi-Benefits management (ADP's Flexi-benefit management service is widely used to encourage employees by giving them complete freedom to choose their own benefits package
		i) With ADP's ESS Portal, Employees can now submit their investment declaration proofs through an easy to use and mobile -optimised interface.
	2	Pro's of Outsourcing Company's Payroll function
		a) Consolidated Error free documents & Reports with sharper business intelligence
		b) Decreased IT infrastructure investment
		c) Speedy resolution of employee queries
		d) Lower risk related to compliance & Penalties
		e) Better resource deployment
		f) Supports entire employee payroll life-cycle,from their date of joining to exit.
		Con's of Outsourcing Company's Payroll function
		Paying for service businesses don't need
		Payroll company can produce errors
		Business owners ultimately are responsible
		Outsourced services risk confidentiality and copyright infringement issues
	3	My Opinion
		1.Outsourcing non-core business functions is sure a fine way to increase operational efficiency.Infact more & more companies are today are outsourcing services to external parties.
		2.Core business functions are the essential tasks that are more critical to company's revenue stream,Non core business functions are necessary but they are generic and of the lowest value to business.
		While administrative & back office functions like payroll processing are essential,they don't differentiate your company from competitors.
		3.Very few businesses wouldn't benefit from outsourcing payroll. With high volumes of paychecks to issue,employee turnover,&all paperwork involved in handling payroll most businesses are better off outsourcing this function to the experts.
		4.As a growing company you need to know when is the right time to outsource payroll your goals should include:
		a.Gain more time & resources to focus on core business activities
		b.Lower costs & business risks
		c.Streamline payroll processing as your business grows.
		5.Here are some five signs which suggests it's time to outsource this non core business function.
		1.Payroll is costing you too much
		2.You are making too many mistakes
		3.Takes too much time
		4.Compliance is overwhelming
		5.Your processes aren't consistent.