Payroll management can often be a hassle for businesses, be it of any size. Therefore, companies choose to outsource these tasks to experienced firms rather than employing an internal finance team. Payroll services Dubai play a vital role in fulfilling all the payroll-related requirements of the businesses. They help in managing their payroll documentation, expense claim disbursement, and processing of payslips in an easy way. Through Payroll Outsourcing in Dubai, companies can also reduce errors in the bookkeeping of financial transactions.
Nevertheless, preparing for payroll is not an easy task as it is governed by several rules and regulations of the federal authority. Hence, in this blog, we will explain how payroll services work and what roles they play in the effective functioning of an organization.
Payroll services Dubai
Employees are said to be the backbone of an organization. They are the most valuable asset of a company. Therefore, it is the prime duty of the company to keep track of all their employee-related activities. To perform this task effortlessly and efficiently, they hire Payroll Services which records and prepares reports on the employees’ activities and evaluates their performance individually so that the company can make an informed decision for its future.
The payroll outsourcing services may include the following:
- Accurate salary processing
- WPS-compliant salary transfers
- Calculation of overtime compensation, bonuses, and commissions
- Electronic generation of payslips
- Reconciliation of bank accounts
- Calculation and payment of accrued leaves and gratuity
- Analysis of customized payroll reports
- Data security
- Systematic management of data
- On-call availability of payroll experts
Role of Payroll Services Dubai
Below listed are some of the significant roles and responsibilities of Payroll services in Dubai:
- Maintain employee records – Payroll service providers maintain the records of employees such as the remuneration, additional allowances, incentives provided, leaves taken, etc.
- Enhance the morale of the employees – When employees receive their full income on time, it increases their morale and work capacity. Payroll Services Dubai ensures that the employees are distributed fair wages in a timely manner.
- Re-allocation of resources – Payroll service providers provide information to the company that enables them to allocate resources to the segment that requires it the most.
- A clear picture of the compensation package – Payroll services provide a clear picture of the remuneration, allowances, and overtime privileges of the employees which helps them as well as employers keep track.
- Increase employee retention rate – If the confidence of the employees is high, they tend to stay back in the company. Payroll services take care of this and make sure to increase the employee retention rate.
- Build company reputation – Payroll services are also responsible for generating pay slips and salary statements of the employees which empowers them and makes them more efficient.
Benefits of Payroll Outsourcing in Dubai
Companies can avail of several benefits through Payroll Outsourcing in Dubai:
Cost-effective
Employing an accountant in the company comes with various obligations and recurring costs such as monthly income, travel expenses, visa, medical insurance, gratuity provisions, training costs, and overtime costs. However, the fees of payroll services in Dubai are tailored as per the requirements of the company and are far more affordable than hiring an in-house accountant.
Expert knowledge
Payroll Services offers advisory services on extensive issues related to UAE labor law. They ensure that the client is compliant with any latest updates in the law. Furthermore, when the company outsources these non-core activities, it can achieve operational efficiency through the expert knowledge and experience of the service providers.
Enhanced security and confidentiality
Payroll service providers alleviate the risk of disclosure of sensitive information, identities of employees or employers, and potential mismanagement of company resources.
Focus on Core Business Activities
By outsourcing payroll activities, the management team of the company can focus more on the core business activities, improving business planning, and setting up standards for the business. It reduces the extra burden off their shoulders and relieves them from the stress related to tax deductions, payroll calculations, paychecks, etc.
Accurate Results on time
Outsourcing agencies guarantee accuracy in payroll management. They provide more accurate results on a timely basis, thereby ensuring better employee satisfaction and retention through employee management and timely deposits of their respective salaries.
Compliance with Laws & Regulations
Businesses, especially SMEs and startups, can find it hard to keep up with the frequent and complicated changes to local legislation. Outsourced services help them stay updated with the changes to UAE labor laws, data protection regulations, and the Wages Protection System (WPS), further ensuring that the business is compliant and employees are paid correctly and on time.
Sophisticated Technology
Payroll service providers use specialized payroll software that systematizes the entire payroll activities. This high-security software helps in data security, accurate payroll processing, and time management more reliably. Since small companies cannot afford the expense of such software, they outsource their activities to external agencies who take responsibility for security, upgrades, changes in regulations, and backups.
Service scope
Payroll service providers in Dubai give a clear scope of the services the client is receiving, outlining their responsibilities concerning the payroll management of the company. Moreover, their services are tailored to the specific needs of the company such as regulatory updates, WPS setup, salary transfers, statutory payments and filings, audit assistance, report generation, backdated calculations, and leave management.
Resource efficiency
The security of employee data is a genuine concern for any company, be it a small organization or a large corporation. The outsourced payroll services offer advanced security and store all the vital data on highly secure servers. They also use the latest encryption technology to make sure that the data stays fully protected.
Operational productivity
Understanding payroll transactions consumes a lot of time and requires expertise. Lack of proper knowledge can lead to unnecessary errors and disruptions. Hence, by outsourcing these transactions, companies can boost their operational productivity, thus saving time on payroll processing and improving internal processes.
How does Payroll Outsourcing in Dubai function?
Payroll Services Dubai follows a specific process of functioning involving several steps –
- The client approaches and hands over unstructured data to the payroll service provider.
- The service provider understands the client’s business, their working style, and the business model.
- Further, they carry out various tasks on behalf of the client such as structuring salary and incentives, data migration, setting up rules and employee records, etc. These are one-time activities.
- Additionally, the payroll experts also take care of clients’ recurring activities such as Payroll processing, pay slips, preparation and submission of statutory reports, and managing client and employee queries.
- In addition, the annual activities of the business in payroll management include IT computation, receipt and verification of declarations and proofs, and Form 16 & form 25, which are again handled by Payroll Services Dubai.
- Lastly, they provide reporting and MIS services which include pay registers, leave reports, bank advice reports, IT reports, etc.
Speak with payroll outsourcing agents of Shuraa
Shuraa Tax and Accounting Consultancy is one of the best audit and tax consultancy firms in the UAE. Their services are not limited to accounting and auditing, but they also assist companies with software consultancy and management. Their experienced auditors and payroll experts offer quality-driven services by conducting a systematic study of clients’ requirements and recommending suitable solutions to their needs. On the whole, they efficiently handle payroll services according to the convenience of the client, thereby mitigating the risks of data breach, staff identity disclosure, and potential misuse of company funds.
Feel free to contact Shuraa Tax at www.shuraatax.com
