cpa in israel

Outsourced payroll services – how does it work?

What is outsourced payroll?
“Payroll calculations” or outsourced payroll calculations is actually a payroll calculation service bureau with many years of experience that provides a professional, reliable service that saves you, the employer, costs and unnecessary dealings with the employees and the law authorities.
Our professionalism is your advantage:

1. Salaries are calculated by an accountant who is an expert in the field of accounting and is well-versed in labor and taxation laws.
2. Great savings in the costs of directly hiring an accountant.
3. Savings in the maintenance of payroll software.
4. Adherence to schedules for the payment of employee wages.
5. Counseling and accompaniment in all issues related to employee-employer relations.
6. Execution speed and availability.

Who is suitable to work with payroll?
In recent years, a new player in the field is the Ministry of Labor and Welfare. The office began contacting many employers in a random and non-random way and checking their salary calculations. Over 92% of the inspections end with fines being imposed on the employers. These fines range from tens to hundreds of thousands of shekels.
Therefore, the preparation of pay slips using outsourced payroll calculations inevitably leads to a high professional level of the slips and increased protection for the employer against claims by the Ministry of Labor and claims by employees

Why is it worth working with outsourced payroll?
Preparing payslips using outsourced payroll dramatically lowers payroll production costs. Take for example an employer with 150 employees who maintains payroll. The cost of calculating an average rental salary is about NIS 17,000 (12,000 gross and social security). On the other hand, if he chooses to produce the slips through a payroll office, he will pay less than half!
In other words, producing slips through payroll gives security and peace of mind to employers, raises the professional level, and is significantly cheaper than the cost of producing wages through hiring an internal payroll accountant.
At Ratzon Ltd. has been active for over 20 years and is part of the Ben Shmuel group of accountants. The company employs dozens of accountants and provides services to entities such as Ben Gurion University, the Avi Sofer chain, cleaning and security companies, restaurants and many others.

When we talk about the salary field, professional salary accounting requires a lot of attention to details and rules. In payroll accounting, both in a small company and a large company, there are a lot of changing requirements that must be dealt with. This is the reason why many look for a professional who is skilled in the subject, such as a senior accountant.

Why is it necessary for your business?
Payroll is a crucial and complex aspect of running an organization. It includes a number of steps aimed at preventing mistakes and allowing accurate and precise reporting of wages and compensations. Today, an employer who does not pay his employees the wages in an adequate manner is exposed to a number of heavy sanctions:

Claims by the employees – today’s employees are well aware of their rights in terms of labor law and there are also a large number of labor law lawyers waiting to sue the employers
Ministry of Labor and Welfare – About two years ago, the Ministry of Labor began to increase its controls on the implementation of labor laws. In any case where he finds a violation, he files a lawsuit against the employer. In the event that a lawsuit is not filed, fines of tens of thousands of shekels or more are imposed on the employer.

What are the benefits of outsourcing payroll?
Over the years, the field of labor law is gaining momentum: from time to time audits are conducted by the Ministry of Industry and Trade and heavy fines are imposed, employees sue in courts and usually win, one employee who sues tells all his friends and they follow him.
The employer’s exposure in any case is estimated at tens and hundreds of thousands of shekels!

To try and reduce the exposure, we suggest you conduct an audit of the payroll system and the handling of deductions from the employees’ wages. The audit will be conducted by an accountant who is a certified wage inspector on behalf of the Ministry of Labor.

Our office has many years of experience in the fields of wages in general and in the fields of wages for hotels, security and manpower companies and food chains in particular.

A report whose conclusions are implemented will significantly reduce your exposure to fines and unnecessary payments to the state and employees, therefore it is better to preemptively remedy the blow with an external payroll office.

Complexity of salary calculation
Calculating wages for an employee has become a difficult task when the party producing the slips must control labor laws and sometimes even complex wage calculations. Many employees sue their employers and usually win.

Another reason is the sensitivity and confidentiality that exists in the salary issue, therefore many employers turn to a professional body that specializes in this field to prepare external slips for them.
Such a service gives the employer professionalism and immediate availability.

When talking about outsourced payroll
Usually talks about payroll services and production of payslips. In the last two years, the Ministry of Labor has been conducting wage audits in all branches of the economy, for which most businesses are fined and sanctioned in the hundreds of thousands of shekels for incorrect wage calculations. This is where outsourced payroll calculations come into play, the job of calculating wages has become a great burden and responsibility for the employer.

Even accountants who work in companies and businesses find it difficult to keep up with the professional updates of labor laws and workload. Because of this, many business owners have internalized the importance of contacting a professional service bureau with a lot of experience in order to deal with the strict requirements of the Ministry of Labor and the provisions of the law.

“Our company is a service bureau for salary calculations with many years of experience that provides a professional, reliable service that saves you, the employer, costs and unnecessary dealings with the employees and the law authorities.”

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