April/May is the time frame when most organizations tell their employees to make payroll related tax declarations for the entire financial year. Organizations typically use paper based manual forms to have employees submit their tax declarations. These forms are then manually uploaded to the payroll master and then factored for any tax calculations including tax deductions that need to be done on a monthly basis.
The entire process is prone to errors as there are several manual steps involved. The end result may end up to be very unfavorable for the employees as well as the organization. Excessive tax deductions are irreversible and employees will need to seek refund while filing their Income Tax at the end of the financial year.
Disgruntled employees will bad-mouth the organization in social forums and if their grievances are not addressed in a reasonable time frame this may also lead to loss of productivity at work.
Also typically this process is not one-time. Employees revise their tax declarations at different times in the year, adding to complexities.
At Paysquare, we address this challenge rather uniquely. Employees make payroll related tax declarations online at our self service portal myPayroll. These declarations then get automatically considered while the final payroll file is prepared. If there are updates to the tax declaration, only the most recent file is considered.
Since there is trace ability and a clear audit trail within the system, all declarations can be easily linked to individual employee logins. Also since there is a good level of automation, errors, while making entries are eliminated. Across our client engagements, we have seen payroll tax related grievances come down significantly, once our myPayroll system goes live at the client site.
Paysquare has been focused on payroll outsourcing for over a decade now and processes over 100,000 monthly payroll records. Paysquare offers a host of benefits with its managed payroll services.