India for its Payroll Services

Payroll services refer to company’s list of employees. The term is mainly concerned with the total amount that company pays to its employees and it also includes records of employee’s salary/wages/bonus and withheld taxes. It plays a very important role in a company in terms of money paid to employees. From the another perspective payroll is considered critical as it effects the net income of the company because they are subject to regulations made under the law. Whereas from the perspective of human resources, it is considered critical because employees are sensitive to payroll errors. The main purpose of the payroll department is to ensure that all the employee are accurately and timely paid with deductions.

Payroll services provide an attractive & valuable alternative to in house processing. It is less expensive and simple to pay for your employees, filing of taxes. In house processing of payroll services is considered more cost effective than outsourcing. They are quite protective in relation to wages information.

Payroll services take human resources management to a higher level. Payroll services can be outsourced.

Here are the following payroll services that can be obtained by outsourcing payroll services:

  • It provides Employee Self Service by providing online technology to employees to view their salary slip, submit IT declaration, decide FBP, submit a query.
  • Online Access to View and Print Salary Slip.
  • Automated Attendance.
  • Web-based Leave Solution.
  • Reimbursement Management
  • Replace Excel to Web-based Processing of Payroll.

Benefits of Outsourcing Payroll Services

  • Here are the following benefits of outsourcing payroll management:
  • When an organization doesn’t want to manage its payroll processes in-house, then they can opt payroll outsourcing for efficient payroll administration.
  • Fast turnaround.
  • Reduced investment in IT infrastructure.
  • For the entire life-cycle of the employee in a company from the recruitment day, full assistance.
  • Strict adherence to compliance and statutory requirements.
  • Streamlining of all payroll processes.
  • Resource deployment.
  • Error-free reports and documentation.
  • Business intelligence that can help top management for their strategic initiatives.
  • Low-risk of penalties due to non-compliance.
  • Speedy resolution of employee issues.
  • Managing payroll services in the organization can be proved very difficult because of stiff penalties for non-compliance with statutory requirements and other related issues. Companies that do their own payroll processing find that it is an expensive and difficult process. With the help of payroll services, the organization finds its simple way of paying employees’ salaries and filing taxes and performing other activities associated with payroll administration.

GST – Composition Scheme Threshold Limit Changes

After the 16th GST Council meeting held on Sunday, 11th June 2017 Finance Minister Mr. Arun Jaitly announced a further reduction in tax rates for 66 items, as well as an increase in the threshold limit for the composition scheme, which was earlier 50 lakh and is now increased to 75 lakh rupees. It means that any taxpayer with an aggregate turnover up to 75 lakh can apply for the scheme. This move is to include more small and medium sized businesses and traders under the composition scheme’s umbrella and to extend its benefits to a wider base of SMEs.
However, it is yet to be decided if there will be any change in the threshold limit for suppliers based in special category states. Any decision regarding this will be made at the next council meeting.
In today’s economy, where initiatives like ‘Made in India’ are introduced, there is a rapid increase in small and medium-sized enterprises. The government is providing many safeguards and subsidies on its parts to such SMEs to help them face market competition and stand on par with imports.
What is a composition scheme in GST?
The composition scheme provision provided under the GST laws is a relief granted to small businesses and taxpayers. Taxpayers registered under it are taxed at lower rates and are required to comply with lesser compliances as compared to normal taxpayers.
Section 10 of the Central Goods and Services Act, 2017 provided that every taxpayer with aggregate turnover less than fifty lakh rupees were eligible to apply for registration under the composition scheme. The act also provided that such threshold limit of 50 lakh rupees can further be increased up to 1 Crore rupees by the government at the recommendation of the council.
Positive Response to the Change
This decision to increase the threshold limit is widely appreciated by the general public and public officials alike. West Bengal Finance Minister Amit Misra had told reporters that “This is a big decision in favor of traders. It’s a people-centric decision, will benefit the common people. The biggest win is for SMEs today. The biggest development for small and medium enterprises (SMEs) and small businesses that contribute on a large scale to the GDP and job sector of the country,”
In the statement issued by the Finance Minister, he stated that the reason for such changes was the feedback and input they received from key industry players. This signifies a significant dialogue channel created by the ministry, which is a significant requirement for any government. Thus the government’s decision is highly praised, as now more taxpayers are included under its ambit, and can avail the benefits of lesser compliance requirements and reduced the financial burden as the tax rates are very low under the scheme.