Most companies outsource their payroll duties to a third party. The employer transfers requisite funds to the third party which then takes care of all the payroll responsibilities. Wages are now no longer paid from the employer's account but are paid by the third party and thus are known as Third Party Payroll. It always allows organizations to cut back on costs of additional resources, software etc. It also helps to reduce the pay to each hire as they are not hired on the company payroll. Using an external organization to handle payroll administration and compliance is referred to as third party payroll. This is more effective for organizations who want to devote more time to strategizing and planning their HR activities. The choice to use a third party payroll is based on several variables, including the natural memory of employees on assignment, the local organizations and the local laws. An organization's third party payroll services can be tailored based on onsite capabilities. A common question like What is third party payroll services? are always been randomly asked.Businesses that use contract staffing firms in India also provide third party payroll services to handle the pressure of onboarding, compliance monitoring, issuing offer letters to temporary employees, and termination requirements. For firms, this partnership has several advantages. Affirmatively your staff strength will increase yearly as your company does. It is preferable to get in touch with a contractual staffing company that offers third-party payroll services in such a situation. The primary responsibilities of the third-party payroll service provider are:
1. Pay employees, process payroll, and withhold taxes.
2. Making a deposit or sending a payment
3. Tax calculation and deduction
4. Submitting the required government reports
5. Administering perks for employees
Many companies use third-party payroll services due to their many benefits for both small and large businesses. The procedure makes use of technology with clear rules, enabling organizations to do the payroll work. Businesses that switched to cloud-based payments have strengthened their payment procedures. Payroll processing in-house is an administrative duty that expands with your company but is unrelated to earnings. Payroll service providers offer a range of services, including processing payroll, monitoring compliance, managing timesheets and pay conditions, responding to employee inquiries, and creating reports. People usually ask question like What is third party payroll services?. A third- party payroll service allows the organization to cut back on costs of additional resources, software etc. It also helps to reduce the pay to each hire as they are not hired on the company payroll. They need not provide benefits like holiday or vehicle allowance for instance. There are four benefits of using third- party payroll.1. Saves time- As we all know that prospecting, screening and recruiting the right talent is a time- consuming and a lengthy process. So, outsourcing it to a third party payroll management partner saves time.
2. Expenses reduced- Contractual Staffing partners specialize in having an in- house team of experts who handle recruitment, payroll and compliance, and employee management.
3. Peace of mind- By choosing third party payroll services, you literally wash your hands of, among others, paying salaries, managing compliances, maintaining payroll software and generating reports for in- house use.
A third party payroll is important because it allows the organizations to cut back on costs of additional resources, software etc. It also helps to reduce the pay to each hire as they are not hired on the company payroll. They need not provide benefits like holiday or vehicle allowance, for instance. Third party pay involves offering a free product with a paid product or service when the product requires ongoing maintenance. It involves providing free products to a community of product users as a method of generating revenue from a third party who pay to access those users. A third party transaction is a business deal that involves a person or entity other than the main participants. Typically, it would involve a buyer, a seller and another party- the third party. The involvement of the third party can vary, based on the types of business transactions. In conclusion, businesses that uses third party payroll services can gain from time, cost- savings, compliance, flexibility, scale, technology access, time and money savings and increased employee satisfaction. If a company outsource an agency, it becomes free of all everyday staff issues, salary payments, recruitments among many other functions. Working with a payroll partner provides the HR and the payroll teams access to helpful technology and programs to assist with their specific tasks. From saving in costs as well as time to increased access to helpful technology and a professional team, outsourcing payroll can assist companies to complete their payroll quickly and accurately. So the question What is third party payroll services? have many relevant answers. Like any other system, the Third party payroll system has its share of advantages and disadvantages. Some of them includes extra cost addition in the form of their fee to the company.
Seven Consultancy provides the specialized service of Third party payroll. Journey of Seven Consultancy started in 2007. Now it has crossed many milestones and added many feathers in its crown. Currently having operation in different cities of India and abroad to provide solution to the Human resource domain to our clients. It made us one of the top most trusted HR Consultancy in India. We provide not only resource recruitment services but also a complete solutions related to all the activities of Human Resource Management. We are one of the Top Third Party Payroll Service Provider in PAN India.