To put it in perspective, payroll processing involves a lot more than just counting the working hours of staff members, writing checks, making deposits or transferring wages. A specialized firm for payroll processing in UAE undertakes very specific tasks such as accounting for the right deductions being made, integrating benefits plans, handling electronic payroll records, and upholding compliance to all applicable laws on payroll and labor and employment.
An employee typically logs his or her work hours using punch cards, online accounts, fingerprint scans, or bandy clocks to give information regarding the start and end of a working day. A payroll processing team will collect this crucial information from a company and then calculate gross wages, deductions and withholdings, print pay checks, arrange all employment records, and make direct deposits.
All this complicated data and procedure can be made easy with the help of a payroll processing firm that you can outsource to. With a specialized firm for payroll processing, calculations are specific to every single employee or staff member. The paycheck will also come with records that list of the deductions, parameters to be addressed, and the overall amount that is withheld. A payroll processing service provider in UAE also has experts that are constantly updated on updates on legislation regarding employment and wages. This means you will be able to benefit, as well as your business when it comes to regulation compliance.
The ease of handling and the accessibility of information are extended to clients as well with real-time technologies. Rather than making several different calls to a payroll service provider in order to provide you with updates regarding hours and wages, client companies can also have the option in logging into an online payroll system of a payroll service provider. In the payroll system that can eb accessed online, employees will be able to record hours for every pay period as well as the data for payroll accounts that are to be updated immediately or in real time.
If you opt to have payroll processing, a critical HR function for any business in UAE, outsourced to a professional processing team, here are some basic services you’ll be paying for:
Preparation of the pay checks
A payroll processing service provider can handle the duties in an accurate and timely manner for the payment of salaries for all staff members. This includes the calculation of mandatory and voluntary deductions, overtime rates, and normal or standard working hours.
Preparation of the financial statements
The payroll processing firm that a business outsources to can accompany basic packages with reports as to how the payroll of the company affects is budget and expenses. This means the business will get a very accurate picture of its financial standing.
Verification of payroll reports
The reports will be printed in order to let company management or administration to verify payroll prior to the printing of pay checks and the generation of direct deposit files. The company admin is to make adjustments, when necessary.
Printing pay stubs and pay checks
Direct deposit files will be generated by the payroll processing team and sent to banks and authorities. They are going to contact all concerned departments in order to help ensure the files are received appropriately. They will also verify the amount that was received.
Keeping payroll records
The payroll processing team will print payroll registers that show the gross to net wages of employees for an existing payroll or current pay period. The registers will be filed in confidential storage facilities. The records of company payroll will be kept for at least three years. A set of timekeeping records as well as those in which wage computations and deductions are based on will be kept for at least three years as well.
Printing and distributing reports
Reports will be printed and distributed as needed by relevant departments including finance and human resources. This is often for reconciliation purposes and benefits administration. If a separate company or department will be handling the payroll deductions, the payroll processing team company payroll was outsourced to will forward all relevant records for every pay period.
Expertise and technology for scaling up
One of the main reasons why it is advised to seek the help of a payroll processing firm is because they can help in the transition from pen and paper to up-to-date and accurate accounting through digital channels. Does your business seem like it is on the verge for expansion? If so, then outsourcing to a reputable firm with the technology and skills you require would prove to be an excellent-investment. A payroll processing firm is essentially your partner for scaling up.