Various methods of payroll services for your business

The possible options for running payroll can be

• Excel-based payroll management
• Payroll outsourcing
• Using payroll software

Excel-based payroll management

Many businesses that are at an initial stage of operations and have a handful of employees typically opt for excel based payroll services management.

Excel-based payroll management involves doing payroll calculation on excel sheets using customary payroll calculation template. The mathematical formulas are set that facilitate the payroll officer do the computation. Whereas this methodology doesn't involve any price, however it has its inherent limitations like.

• High probabilities of clerical and mathematical errors as information are entered manually

• Difficulty in adding and removing staff from payroll list

• Chances of duplicate information and omission of entries sometimes

• Need to watch tax updates and alternative statutory changes like PF, PT etc

Payroll outsourcing

Outsourcing payroll services means that you would like an external agency to take care of your payroll operate. Several organizations that do not have a dedicated person for payroll choose this feature. Based on their pay cycle, monthly they supply employee pay data and different information like attendance, leaves, compensation details, etc. to the payroll service provider. The service provider then computes payroll and additionally takes care of statutory compliance. Since payroll may be a crucial function and businesses need to own full transparency and management over it, they typically hesitate in outsourcing payroll.

Payroll software

As discussed earlier, to run successful payroll, you have to be sure that payroll inputs are coming from every source in a timely and seamless manner. The tendency of using software is to reduce the friction in getting the inputs. There is advanced payroll management software available in the market that not only automates payroll computation but also serve as a holistic leave and attendance management, HR management and employee self-service portal. Depending on the size of your business and use cases you can opt for appropriate payroll software for your business.