Payroll compliance is a hot-button issue for small businesses, and rightly so. It can be a complex and confusing topic, as it’s easy to make mistakes that could result in heavy penalties. What compounds the issue is that not all companies are equipped with the right tools and professionals to overlook this tedious yet vital aspect.
This is where an experienced payroll compliance partner can help. Payroll compliance partners provide comprehensive end-to-end solutions to payroll-related matters. From managing the wages to ensuring that labour laws are being upheld, the payroll compliance partner helps alleviate the stress and burden that comes with this process.
As companies are getting digitised and invariably embracing newer working and operational models, the role of the payroll compliance partner becomes even more crucial. But what exactly does this role entail, and what can be expected out of your payroll compliance partner?
To answer that, we have rounded up all the essential things you must expect from your payroll compliance partner. Let’s dive right into it.
The payroll compliance industry is growing by leaps and bounds from cloud-based payroll to intuitive and customisable software dashboards. Along those lines, here’s a rundown of the most important things that you should consider:
As a payroll compliance partner, the provider should have the right tools and expertise to handle the entire payroll cycle. The requirements can vary based on the location, industry, and size of the organisation.
However, the essentials of payroll remain the same. Every provider must include services such as employee reporting, creating paychecks, tax deductions and deposits, annual filings, benefits/ reward submission, etc. A fully-fledged payroll service system should be enabled to ensure consistency and smooth overall performance.
Handling sensitive payroll information and employee data is a key concern for every organisation. Therefore, the payroll compliance partner must offer data privacy and security in this regard. This is applicable for both in-person services and software as a service.
In any case, the crucial information of the employees must stay within the system. For this, the payroll compliance system must be encrypted to avoid possible leaks.
Perhaps the most crucial aspect for a payroll provider is ensuring that the company complies with employment laws. This includes all the labour laws, tax legislation, and industrial relations codes. The payroll compliance partner should be able to keep an eye on numerous legislations and updates.
Also, the process must be designed in a way that conflicts of interest are avoided. In case of any kind of conflict with these laws and regulations, the provider should be able to spot them in time and prevent them from taking place. They must understand that employees have the right to file a complaint in case of forgery. Thus, to avoid unnecessary audits, the payroll service providers must meet the compliance criteria without fail.
To err is human, but when it comes to payroll documentation, errors can be fatal. Payroll compliance partners are expected to maintain employee records with utter precision, leaving no room for errors.
These records are stored within the organisation to be used at any time during an audit. Every organisation must expect its partners to provide a detailed overview of every associated employee, either part-time or full-time.
Payroll compliance partners must facilitate routine audits. This is an ideal practice to find loopholes in the current system so that due maintenance can be carried out. Organisations must remain prepared via these dummy audits just in case they have to face an actual audit due to any complaint or other miscellaneous reasons. These regular checks must be a part of what a payroll compliance service provider can offer.
Every provider must also keep track of the yearly/ quarterly or monthly filings needed. The government mandates every organisation to submit PF information, new employment details, and other such data timely. Payroll compliance providers must ensure that these filings are never missed.
Apart from this, submission of PF on a set day of every month is also mandatory. Many companies fail to comply with these laws, which leads to legal notices and hefty penalties. When onboarding a payroll compliance provider, companies should expect these responsibilities to be shifted to the other end of the wagon as well.
Having the right payroll compliance partner is vital for every organisation. Whether you’re a veteran in the market or just starting, a payroll compliance partner can help ease out the tedious workload. From managing industry-specific regulations to facilitating proper record keeping, a payroll compliance partner is your best bet against any kind of payroll-related hiccups.
Core Integra offers comprehensive solutions for your payroll compliance needs. Contact us today to know more.
