Dear Kumar,
There are many benefits of outsourcing payroll to expert companies that provide payroll solutions along with statutory compliance. The major benefits are:
For Employers:
1. No need for investment in payroll software and payroll resources.
2. Ensure 100% compliance towards statutory filings since the responsibility and ownership are passed on to the outsourced agency.
3. Maintaining the confidentiality of payroll information, which is not within the reach of in-house resources.
4. Continuity factor - In case the employer has in-house resources, they are dependent on the resource and have to look for a replacement in case of illness or resignation of the employee.
5. Managing and monitoring the resource.
6. Updates on statutory changes are the responsibility of the payroll agency, hence no need to worry about implementing changes in statutory compliance.
7. Get value for money - Accuracy, deadlines, etc., are the ownership of the payroll vendor.
8. Customized reports and analysis as per the requirement of the management.
For employees:
1. Quality and timely response on clarifications on payroll.
2. Educating employees on payroll-related matters by the payroll vendor.
3. No favoritism since the payroll is outsourced.
4. One-point contact for employees.
All these depend on the arrangement the company will have with the payroll vendor and the service levels of the payroll vendor.
Please do let me know in case you need any more information.
Thanks