How EOR Manages Payroll Services in India

In this competitive business world, growth and expansion also bring some unavoidable responsibilities and challenges, payroll is one of them. If the payroll is to be processed for a remote team outside the native country then it’s all the more worrisome. Each country has its laws, tax regulations, and payroll compliances.

The timeliness and correctness over and above the compliance aspect affect the team’s morale. In short, the Payroll processing of the remote teams is one of the most essential and critical functions of a business. So this becomes one of the key considerations when selecting the Employer of Record payroll service provider. 

This blog is for executives who are in the process of building remote teams using Employer of Record (EOR) payroll service providers. The blog is aimed at letting such decision-makers know the key payroll considerations that should be discussed with the service providers during the selection process. 

How is Payroll Processed at EOR?

Many people mistakenly believe that EOR payroll companies and payroll services are similar. But in reality, the payroll is one of the important functions done by EOR. EOR uniquely processes payroll by handling multiple clients and providing different pay stacks for all the clients. The EOR has an input-gathering system where it collects all the data from different aspects of the company to perform a seamless process. 

EOR provides customized services as per the client’s requirements. To meet each client’s requirements, EOR payrolling services must have advanced payroll software with high configurability. Most importantly provides the best employee dashboard where one can have all the information gathered. Let’s understand all these functionalities one by one.

How an Employer of Record Handles Multiple Clients

An EOR often works with several clients simultaneously, each with different needs and payroll difficulties. The Employer of Record payroll companies use a multi-client management system to efficiently handle this, guaranteeing customized services for every client while preserving operational effectiveness. This entails forming specialized teams for every customer, managing several payrolls with sophisticated technologies, and upholding stringent data security and confidentiality guidelines.

Input Gathering System

Ensure checking the SOPs because to perform smooth payroll, it has to interact with various departments and collect the necessary data. Payroll collects data from employees, the leave and attendance system, clients, the HR team, and the Finance team. In terms of performing seamless payroll, the SOPs have to be in place and the Input Gathering System has to be proficient.

Different Pay Stacks for Clients

Pay arrangements can differ from client to client and may include different components of salaries, bonuses, allowances, and deductions. For every client, the EOR payroll should set up unique pay stacks, ensure that all parts are computed correctly, and adhere to local laws. Ensure the capability of the EOR based on how Employees will be paid accurately according to their unique employment terms and circumstances. 

Customization

One important component of EOR services is customization. Do check how the EOR service provider customizes payroll procedures to each client’s unique requirements. It should involve personalizing reports, employee benefit plans, and payroll schedules. The EOR’s value proposition is strengthened and client satisfaction is guaranteed by its capacity to adjust to changing client requirements.

Software Configurability

Advanced payroll software is essential for effectively managing several clients. Software that may be customized to meet each client’s specific payroll requirements is used by the EOR payroll. This software is appropriate for international operations since it supports a variety of currencies, languages, and compliance needs. Because of the software’s configurable features, the EOR can apply rules and computations that are unique to each customer, guaranteeing accurate and legal payroll processing.

Zoho is one of the best web-based business tools and software used by known organizations. It particularly helps in storing employees’ personal and professional information.

Employee Self-Service Dashboard

The EOR payroll needs to offer dedicated dashboards to the client team to improve accessibility and transparency. Check what can be seen on the dashboard. Businesses should be able to create reports, monitor compliance, and get real-time payroll data through the client dashboard. Employees should be able to view their pay stubs, tax returns, and benefit details via the employee dashboard. These dashboards should give clients and staff access to the required information, enhance communication, and expedite procedures.

There are so many terms used in Payroll services delivered by EOR. Various terms are performed in Payroll services such as Payroll, Compliance, Gross Pay, Net Pay, Tax Withholdings, Benefits Administration, Payroll Software, Client Dashboard, Employee Dashboard, etc. For more and better information about the terms, check our Glossary for Payroll Services in India.

Conclusion

One of the important functions of an Employer of Record is managing payroll services. This is one function that is important to the remote team and also to you as a client because it affects the monthly billing, So while choosing an EOR payroll partner, businesses should consider factors such as experience, compliance expertise, technology, customer support, and quality of resources processing the payroll. Ensure you discuss every aspect detailed above to confirm the failsafe processes and systems are in place.