Accounting Services

Payroll Services and their Importance to a Business

June 21, 2021 Comments Off on Payroll Services and their Importance to a Business

In the changing world, the companies’ main challenges concerning intra-company affairs are handling the employees’ attendance, taxes, and employee compensation. It is the most important because the employees are the company’s backbone and its most important assets. Companies worldwide pay special attention to retaining their employees by providing them with skills training and welfare benefits, and timely compensation to ensure employee retainment, which will benefit the organisation in the long term.

What are Payroll services?

Payroll refers to the processing of the paychecks, reimbursements, and taxes in a company, including calculating, recording, and distributing employee paychecks. Payroll services will also ensure compliance with all the current rules and regulations of the land’s labour law.

Payroll is a vital functioning organ of any organisation whose responsibilities include understanding the UAE’s regulations with complete knowledge of the tax laws. It also includes implementing a robust system that ensures the employee remuneration will be calculated correctly and paid on time without any delays. The payroll system can be processed internally within the company or with the assistance of payroll software or outsourced to an external Payroll Services Company in the UAE.

Duties of the Payroll Services

The payroll is directly responsible for covering the following things:

  • Monitor and record employee attendance and work timings
  • Calculating the employee remunerations and setting up the direct transfer of the paychecks
  • Evaluate the taxes and ensure correct deductions.
  • Ensuring compliance with all the state and federal policies with regards to employee welfare and compensation.
  • Ensuring to maintain employee benefits like life and health insurances and other company benefits.
  • Verifying and reimbursing work expenditures as per the company policy
  • Issuing the payroll records on specified periods to employees and employers.

Importance of Payroll Services for the Company

Payroll services ensure that all company employees are always paid on time, and the company meets all the legal obligations under the state’s rules and regulations. The human resources (HR) department can focus on other essential tasks towards employee development and address any employees’ work-related concerns. The HR department can act as a bridge between the employees and company management.

Payroll services are most useful for smaller companies with less staff. Payroll, being one of the most critical functions in an organisation, should be timely executed by the owner to ensure trust. Payroll services will assist the owners in sorting the employee pay under government policies. Owners of such businesses can be worry-free and focus more on developing their business.

Advantages of Outsourcing Payroll Services in the UAE

Hiring an external payroll agency’s services can solve all employee pay-related issues in the company and keep the management worry-free in such regards. There are many advantages to hiring payroll services in the UAE.

  • Payroll services ensure that the information provided is always up to date so that management and HR leaders don’t have to spend their time and resources on the same.
  • Payroll services will streamline the company’s payroll processes and avoid the need for an in-house payroll department.
  • Payroll companies offer the best in legal compliance and accountability to their clients. The duties include researching recent developments in labour law online and keeping the management up to date.
  • The Human Resources department usually need to focus on both the payroll and human resources tasks. Payroll service companies take all the worries out of payroll processes.
  • The payroll company will take care of all of your taxes and any other payroll issues and ensures a very high degree of accuracy and reliability.

How Can We Help?

We at Jaxa Chartered Accountants provide payroll services to clients in the UAE for the past many years. We ensure that employee compensation is calculated and paid on a timely basis, and our client is compliant with all the state and federal governments’ policies. We closely work with our client companies in the UAE to sort out bookkeeping, accounting and payroll processes so that our client can solely focus on developing the business. Please Contact Us for any queries regarding the payroll-related matter. We’d be delighted to assist!