How much is the Payroll Service Costs? Overview of an average Cost for the Payroll servicesshahulmarcom
A payroll structure covers all details of the compensation offered to an employee with a complete break-up of the components. Payroll pricing structure refers to the way in which a company charges for its payroll services. There are different pricing models for payroll services, depending on the provider and the specific services offered.
Any change to this payroll structure has a major effect on the tax exemptions that can be claimed by the employee. Overall, the pricing structure for payroll services will depend on the specific needs of the company and the services they require. It’s important to carefully review pricing options and compare them with the level of services provided to ensure the best value for your business.
Basis of payroll service cost:
Payroll services can be a valuable asset to businesses, allowing them to streamline employee salary and wage payments as well as filing taxes and other compliance features. However, it’s important to know the cost of payroll service in order to ensure your company is getting the most out of its investment. In India, payroll services vary in cost depending on the size of the business and complexity of the service needed.
Payroll processing is one of the most important functions for any Finance or HR department. Payroll delays or errors can affect your organization’s credibility. However, there are practices that can be applied to streamline all the essential payroll functions.
Payroll calculation includes many things such as basic pay, arrears, HRA, PF, tax deductions, and many more. But the following steps will help you to calculate the entire payroll with ease.
There are a few other factors that determines the payroll service cost, which includes the size of your company and its specific needs. Generally, payroll services charge on a monthly basis or annual basis or per employee per month, but there may be customization available to fit your company’s budget.
The next step is collecting employee data based on their CTC structure and statutory compliance.
- Employee designation and CTC structure
- Income tax information
- Bank details
- Reimbursement claims
- Other benefits information
Net Pay = Gross Salary – Gross Deduction
Gross Salary = Basic salary + HRA + DA + Allowances + One-time payment/incentive (Reimbursements, Arrears, Bonus, etc.)
Gross Deduction = Professional Tax + Employees’ State Insurance(ESI) + Public Provident Fund(PF) + Income Tax + Insurance + One-time deduction
What Factors Influence Payroll Service Costs?
- total number of employees
- Payroll schedule and frequency
- Required payroll service features
- Type of Deposit
What’s the average cost of outsourcing payroll?
There are a couple of different ways to outsource payroll, but one of the most common is a ‘fully managed service,’ which means that your entire payroll function is outsourced to a third-party. This provider will deal and handle payroll-related queries from their staff. But on average, you can expect to pay the following amounts for a fully managed payroll service:
- Payroll service per month
- Setup fee – Implementation charges
- HR integration per month
As you can see, the average cost of outsourcing payroll is highly dependent on the number of employees working for you.
Choosing TalentPro as your Outsourced Payroll Company:
TalentPro has a long history of providing high-quality payroll services to businesses of all sizes. As an industry leader, we have the experience and expertise to handle your most crucial reporting and processing tasks. We will work with you to ensure that your pay cycles are on track and in line with your operations. Our expert payroll service providers also ensure absolute compliance across the board.
With TalentPro, it can be confident that your payroll needs are in good hands at the most competitive payroll services cost.
TalentPro, provides payroll services priced for businesses of any size. TalentPro offers solutions for all types of payroll from simple to the complex. We’ll work with employers to determine the individual setup that’s right for their business and fits their budget.