Payroll is the complete calculation of the amount of money the businesses are liable to pay the employees for their tenure and work within the company. Without money, no employee will turn out to be a productive one. Thus, calculating the correct amount of compensation is of utmost necessity. For employee payroll solutions, the accounts department of the organisation is generally held responsible.
If the business is smaller in size, then the business owner handles the payroll. However, let’s consider the alternative situation where the business has many employees working under the same roof. Management of accurate payroll solutions for such large businesses is difficult for the HR department.
That’s where outsourcing employee payroll solutions play a vital role. Here are the three types of employee payroll solutions you can avail of depending on the size of employees working in the company.
What are the different types of employee payroll solutions?
In-house payroll services
In case the employee strength of the company is less than 20. It is easier for the business owner or an assistant to know accounting calculations to handle the employee payroll solutions. In such cases, the entrepreneur does not maintain even a formal book of accounts. However, if the employees are liable under tax deductions, filing and other forms of employee laws, then informing the calculations is a major requirement. The only benefit of in-house employee payroll solutions is the heightened level of privacy that businesses can maintain.
Bookkeepers and Public accountants
For companies with more than 50 employees, the HR department and the accounts team generally handle employee payroll solutions. The companies appoint bookkeepers or Certified Public Accountants (CPA) depending on the complexity of the employee payroll calculation process. If the calculations involve critical and sensitive data, it’s better to hire a CPA.
Outsourced Payroll solutions
This is the most widely used option, especially by multinational companies. They have a team of specialised accountants who can handle all sorts of issues, complex calculations, tax filing, and also prepare the salary slip for the employees. Outsourcing the payroll solutions will ensure that you have the information updated over a portal for your employees to view.
Organisations of all sizes can benefit from Northumbria Payroll Solutions. We offer a range of employee payroll solutions that will definitely help to get a better business outlook. Check our website for further information.