Choosing Right Payroll Service Provider

If you are going to choose a payroll service provider, it’s time to decide which one might be right for your company. The small business owners we spoke with said some of the most important factors to consider include the cost, ease of use and customer service support.

One way to help determine the right payroll service for you is to make sure you are asking the right questions.Payroll experts that we interviewed told us that before making a decision,you should ask potential payroll service providers a number of questions, such as:

·          How long have you been in business?

·         How often are your tax tables updated for compliance?

·         Do you have other clients in my industry?

·         How important will my business be to your company?

·         If I have a question or concern, whom do I go to?

·         What's the structure of your customer service department?

·         Can you integrate with my employee benefits offerings?

·         How can I monitor and track all of my payroll transactions with you?

·         How will you handle my business as my company grows?

·         What are your fees and contract policies?

Since payroll is such a critical aspect of running a business, it is also critical you find a service provider that offers top-notch customer service.

Do not sacrifice service or functionality to save a few coins. "In the long run, having a more functional system with a top-notch service team will more than pay for itself."

Brooks Consulting Private Limited Payroll is an online based payroll provider trusted by corporate and Individuals, employees can access their pay slips online 24 X 7 through any part of the world and same HR can access HR records of all employees online.

 Brooks provide best payroll services in India.

India signed US tax compliance law FATCA

 India signed a new Act with US Government which is known as FATCA. It is Foreign Account Tax Compliance Law. It will definitely help to fight Tax evasion.

In US, it is aimed at preventing tax evasion by Americans by sharing financial details with other countries. There will be greater transparency between India and US on tax matters.

The agreement was signed by Revenue Secretary Shaktikanta Das and US ambassador Richard Verma. It is a bold step taken by Indian government in response to black money.

The exchange of information on regular basis regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity into the direct tax regime," Das said.

Indian financial institutions need to provide revenue information of US Tax payers to US tax authorities. Similarly, US Government follow same protocol.

"The signing of the inter-governmental agreement on FATCA is a landmark event in furthering the Indo-US relationship," said international accounting firm KPMG in India Partner Himanish Chaudhuri.  

Indian government is committed to the confidentiality of data and is taking required measures to ensure it.

"A security committee has been set up within CBDT (Central Board of Direct Taxes) headed by the chief information security officer for security of documents and information," he said.

FATCA will cover all accounts opened from July 1, 2014 onwards, in Indian Financial Institutions.

India starts receiving information through Automatic Exchange of Information (AEOI) under FATCA from US later in the year.

Ruchi Anand and Associates, the internal auditor inIndia was looking in the depth of this matter and comes up this information. We have one of the best Chartered Accountants in India who provides all tax related solutions. They can advise you in tax issues and in starting a new company as well.

Why do you need payroll service provider?

Multi State compliance is a common issue with payroll service providers. Processing the benefits and payroll services at a same time becomes critical because each employee has its own record. Compliance is the rules, regulations or standards a company need to follow defined by Ministry of Labor and Employment and state. Companies face multi-state compliance issues when their employees cross state lines for their jobs or have multi state operations.

There is also an issue of minimum wage difference. Wage varies widely from one state to another. Ministry laws do not preempt state laws so that in many cases employees need to pay tax in both states on the same income. During payroll processing, they cannot apply same strategy for all employees.

Overtime is paid 1.5 times more than the standard pay for hours worked beyond 40 hours in a single week. Some states do overtime calculations on daily basis setting 8 hour as benchmark. Overtime compensations are pre-empted by laws of employees who have salaries greater than certain threshold. All the deductions, state income tax withholding or application of income tax to residents or non residents are also vary by state

Special payroll tax issues may apply to non resident employees who work in one state and live in another. Some states may have reciprocal agreements with certain states, simplifying withholding tax guidelines as income will be taxed in only one state.

State laws vary when it comes to defining liability for withholding taxes. These are some conditions need to be met for a company becomes liable for state withholding:

* The company is doing business in the state.

* The employer pays wages to at least one person in this location for services rendered.

* The company derives some form of income from this state.

* The business maintains a physical address in the state.

Payroll Outsourcing

Outsourcing payroll services to a third party that specializes in this function simplifies the procedure for employers while ensuring compliance with state and ministry laws.

Preferably, the payroll management companies must have local and global expertise aside from providing a comprehensive suite of services to cover payroll services in India, payroll tax payments and overall payroll processing. Compliance with ministry, state and local tax jurisdictions should be integrated into the service package. Delhi based Brooks Consultancy Private Limited process according to your needs and streamlines administration of these services to ensure compliance in every state where your business operates.