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Proposal for Outsourcing Payroll Process

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Proposal for Outsourcing Payroll Process Powered By Docstoc
					This is a sample Proposal for Outsourcing Payroll Process that a company can use to
attract prospective clients. The proposal explains the benefits and advantages of
outsourcing payroll and sets forth the full range of payroll services that are offered. In
addition, the proposal covers the responsibilities of the outsourcing company, the costs,
and the monthly service levels. This document should be used by payroll outsourcing
companies to advertise their services and to attract potential clients to their business.
Table of Contents
1    Introduction ........................................................................................................... 3
2    Why Outsource Your Payroll ................................................................................... 3
3    Advantages of Payroll Outsourcing .......................................................................... 3
4    Our Offering Will Include ......................................................................................... 4
    4.1    Basic Payroll Services ....................................................................................... 4

    4.2    Leave Administration ....................................................................................... 5

5    Our Responsibilities ................................................................................................ 5
    5.1    Once off Set-Up Responsibility .......................................................................... 5

    5.2    Monthly Responsibility ..................................................................................... 5

    5.3    Annual Responsibilities..................................................................................... 6

6    Monthly Service Level ............................................................................................. 7
7    Costing .................................................................................................................. 7
8    Terms ....................................................................................................................8
9    Conclusion .............................................................................................................8




© Copyright 2013 Docstoc Inc.                                                                                                  2
1   Introduction
Any organization considering outsourcing its payroll services must factor in the essential nature
of payroll to its respective business, taking into consideration the need to find a cost-effective,
reliable, and hassle-free solution within the highly sensitive area of payroll administration
outsourcing.


2   Why Outsource Your Payroll

The more variables involved in payroll, the more it makes sense to use payroll outsourcing. We
can calculate your payroll, adhere to the latest tax obligations, print and deliver checks, and
provide you with the requirement management reports.
Despite the potential savings, cost is not the primary reason why most firms make the payroll
outsourcing leap. Rather, they want to get rid of the hassle of internal processing. It is often only
after they begin using a payroll service that they realize they are saving money.

The following questions can help you deciding whether your organization needs to outsource the
Payroll Services:

    a) Can your organization handle the calculations and details of your payroll with complete
       confidence that it is precise, timely, and accurate?

    b) Does your team understand all of the details related to filing its payroll taxes as a
       company and for each of the employees?

    c) Does your organization have an automated payment system or a system in place that will
       issue payments effectively and on schedule?

    d) Do your organization and the team have the time to verify the accuracy of all these
       documents?


3   Advantages of Payroll Outsourcing
Although there are numerous advantages of outsourcing the payroll services to us, a few points
are listed below:

    a) Does not incur the direct & indirect staff-related costs of own system

    b) Far greater flexibility in terms of monthly close off

    c) Does not rely on the Internet and related technology challenges

    d) Get rids of hassle of internal processing and non-core business


© Copyright 2013 Docstoc Inc.                                                                         3
      e) Compliance with statutory legislation

      f) Confidentiality of Payroll Information

      g) Dedicated person to handle queries from your staff and/or your internal administration

      h) Savings on additional costs, i.e., stationary, software annual licensing fees, etc.


4     Our Offering Includes
4.1     Basic Payroll Services
      a) Collection of payroll information by the cut-off date via e-mail

      b) Processing of monthly payroll information

             •   For speedy processing, we make use of keyboard input and batch processing of
                 large volumes, e.g., overtime, commission, and increases.

             •   Compiling the monthly final payroll containing the following:

                      i. An electronic salary transfer file, i.e.,

                             1. Cost analysis

                             2. Standard payroll reports, which can also be consolidated for
                                different payrolls i.e.

                                     a. Remuneration List

                                     b. Earning List

                                     c. Deduction Analysis

                                     d. Medical Aid

                                     e. Provident Fund

                                     f. Department Survey

                                     g. Security Pay Slip

                                              i. Original for Employee

                                             ii. Copy for Employer Records

                                     h. Leave Reports

                                     i. ASCII Imports and Exports of Reports


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                                     j. Other Reports (per requirements)

      c) Electronic backup of each month

      d) Filing of documentation

      e) Monthly submission/reconciliation for medical aid, provident fund

      f) Detailed monthly payroll reporting and analysis per specifications

      g) Employee queries

      h) Salary structuring—total cost to company

      i) Annual tax year-end

4.2     Leave Administration
      a) Processing of leave forms

      b) Maintenance of different type of leaves

      c) Filing of leave forms

      d) Hotline for employee queries regarding leave

      e) Standard leave reports


5     Our Responsibilities
5.1     One-off Set-Up Responsibility
      a) Downloading current year-to-date information

      b) Loading the current year-to-date information

      c) Confirming all loan and garnishee balances

      d) Confirming leave balances

      e) Attending to requirements regarding reports

      f) Obtaining approval from management for the full take on items such as year-to-date

5.2     Monthly Responsibility
      1) Preparing and Processing of Monthly Payroll

             a. Overtime

             b. Standby


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             c. Loans and Advances

             d. Bonuses

             e. Travel Claims

             f. Resignations

             g. Canteen Deductions

             h. Retrenchments

             i. Processing of Changes to employee information i.e.

                     i. Change of Address

                     ii. Change of Bank Details, etc.

             j. Processing of Changes to Leave Entitlement, i.e.:

                     i. Annual Leave

                     ii. Sick Leave

                    iii. Companionate Leave

                    iv. Study Leave

                     v. Obtaining Authorization on a Monthly Basis—i.e., Payroll Sign-Off
                        Confirmation/Approval via e-Mail

             k. Advising of the Salary Costs to be Deposited Each Month, i.e.,

                     i. Employee Net Salaries

                     ii. Medical Aid

                    iii. Provident Fund

                    iv. Providing Required Reports and Pay Slips

5.3     Annual Responsibilities
      a) Annual updating of personal information for employees

      b) Preparing annual tax returns

      c) <Kindly list all other responsibilities>




© Copyright 2013 Docstoc Inc.                                                               6
6   Monthly Service Level
    a) Monthly payroll information available <x> days before the payroll run (i.e., pay date)

    b) Designation of employee responsible for signing off payroll cost analysis report and
       return to our supervisor by the 2nd working day before payday

    c) Between payday and month-end, employee queries are directed to our supervisor;
       changes are made if required.

                     i. If any error is identified as a result of our processing, an additional pay run
                        will be processed

                    ii. If any error is identified as a result of your error in information provided,
                        then:

                            1. An additional pay run can be processed at an additional fee of $X
                               per employee

                            2. The amendment can be manually adjusted and carried over to the
                               following month’s pay cycle for processing.

                            3. By the last working day of the month, all standard/required reports
                               will be delivered by hand, including:

                                    a. Cost Analysis

                                    b. Department Summary for Accounts Processing

                                    c. Earning Analysis

                                    d. Deduction Analysis

                                    e. Leave Reports, etc.


7   Costing
Costing is defined in consultation with clients to define exact needs and requirements and is
based on the specific service level and number of employees.

Elements taken into consideration in deriving the cost per employee:

Fixed Costs

Annual Licensing Fees – Software

Processing Time



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Meetings/Correspondence Time

Travel Costs

Costs of Desk

Variable Costs:

Pay Slips (Stationary and Printing):

Reports (Stationary and Printing):


8   Terms
[Please list the terms & conditions here]


9   Conclusion
It is our belief that we are able to deliver a professional, personalized service offering greater
flexibility in terms of your Company’s requirements while removing the processing function
from your list of non-core business activities.




© Copyright 2013 Docstoc Inc.                                                                        8

				
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Description: This is a sample Proposal for Outsourcing Payroll Process that a company can use to attract prospective clients. The proposal explains the benefits and advantages of outsourcing payroll and sets forth the full range of payroll services that are offered. In addition, the proposal covers the responsibilities of the outsourcing company, the costs, and the monthly service levels. This document should be used by payroll outsourcing companies to advertise their services and to attract potential clients to their business.