Paying yourself and your employees’ wages requires more than determine the gross amounts to be distributed. The UAE government requires employers in calculating payroll- deductions, remit them, and prepare regular reports demonstrating that calculations are all accurate with salary deductions paid. All these can be a ton of work, most specially for small business owners whose time would be better spent building their brands and generating sales. Fortunately, there are a lot of options for owners of businesses in UAE for payroll processing, remitting wages, and simplifying the entire process.
Companies in UAE are allowed in calculating employee wages manually. If you decide in doing the payroll or salary calculations manually, then you need to track the salaries that are paid together with individual categories such as net salary, gross salary, mandatory and voluntary deductions, and allowances. A spreadsheet will be a good way for you to go about manually calculating payroll as you’ll have to prepare reports to submit to the local authorities.
Although manual calculation is not the best solution for payroll processing in UAE, most especially for established businesses, it can help small business owners save money upfront.
After you’ve calculated the net amount employees will get as salaries for a certain pay period, provide documents which state the take-home pay of employees to your bank or any direct deposit provider.
Note: as a business grows, manual payroll processing in UAE will most definitely become too complicated, error-prone, and time-consuming. Eventually, you’ll need to transition to other options for payroll processing. There are businesses that wait until their current processes become totally overwhelming, but this is not recommended as that puts a business at risk for incurring penalties from payroll processing violations.
The second option for payroll processing in UAE is payroll outsourcing. A lot of entrepreneurs and business owners in the country find outsourcing to payroll specialists an exciting prospect. A huge advantage to this alternative is it offers businesses a lot of free time and space in channeling their resources on frontline activities.
The single most important aspect of payroll outsourcing in UAE is it allows a business to achieve its corporate and financial goals. Businesses have found huge money and time savings with outsourced payroll services, especially because full compliance to relevant UAE regulations is guaranteed. Outsourced payroll services in UAE allows you in taking care of your company’s payroll processes in a timely and efficient manner, all while you put your complete focus on the strategies of your business for expansion.
Here’s how you can find the best outsourced payroll provider in UAE:
- Cost – naturally, you would want your business to find the outsourced specialists that you can afford. Apart from what the cost would be, inquire as well if there will be a contract required for the outsourced specialists’ payroll service in UAE. A lot of professionals operate on a monthly basis without any long-term contract. There are also those that require commitments for either six months to a year. It’s also important that you factor in if you’ll be paying by pay period or by the month. Depending on how your business runs payroll in the past, pricing structure you select can have huge cost implications.
- Support – only hire the outsourcing payroll service in UAE that provides customer support whenever you need it. There should be a support team that is dedicated to your business, or at least a representative of the outsourcing company that is your main contact.
- Reputation – find the service provider that has good online reviews and strong track record. This way, you will not only get in touch with the best payroll service provider in UAE but you will also feel a lot more secure as you know your company payroll is handled by professionals. Should you have payroll issues, there will be people that will have your full support.
- Using an accounting and payroll software
If what you want is to keep the payroll processing inhouse, then there are a lot of payroll software that you can choose from which will help you in doing payroll on your own. A software for payroll processing in UAE can also simplify the process. An inhouse payroll software will require manual setup with employees calculating hourly rates and salaries.
Upon set up of your software for payroll processing, you or your employees will have to enter hours or salaries of each staff member and the software will be the one tasked in calculating the rest. The cheques can be directly printed from your payroll software or be interfaced with the company’s current accounting software. A software can also compile data for reports and remittance. However, the business will be the responsible party to ensure reports and payments are made to the right people and the government authorities on time. Also, a payroll software can be expensive as there are setup and maintenance costs. For more information, call professional experts like company Payroll Middle East.
Image Source: BigStockPhoto.com (Licensed)
Related Categories: Work, Reviews