How to Handle Payments & Payroll: Starkflow's Complete Guide
Whenever you are setting up a new business, you need to take into account four key components that build its foundation and can either make or break it in the long term. These components are like the four legs of table that holds the top. All the four legs have to be equally strong for it to be able to support its structure. Even if one of them is weak, it could topple the entire table.
These components are:
- IT & Technology
- Sales & Marketing
- HR & Payroll
- Admin & Operations
All four of them have to work in unison for the business to function like a well oiled machine.
For the sake of the article, we would mostly talk about HR & Payroll, how it functions in different organizations, types of payroll, and how we handle it.
Whether you’re a small organization or big, working in-office or remotely, have 5 departments or 14; you will always need someone who can take care of the monthly payroll & payments of all your employees.
Although the same gets increasingly complex with a larger team size, as you have to keep individual records of each and every person. It gets more challenging when you have team members spread across in different countries of the world as then the local tax laws, PF, PT, worker rights and many other things come into play depending on the place they are working from.
There are many ways to combat this issue, the easiest of which is to outsource it to a third party. Let’s first understand the stages of payroll processing to make it more clear. It looks like:
Defining the payroll policy > Gathering inputs > Actual processing of payroll > Total payroll calculation > Compliance & reporting
Now let’s understand the ways of payroll processing. It can be done through any of:
- Credit cards
- Wire transfer
- Payroll check
- Accounting software
- Third party payroll service
How do we process payrolls?
To understand that first let’s look at the following questions:
- Is the worker an employee or independent contractor?
- Is the worker located in a different company?
- Are they working on a full-time or a part-time basis?
Once you have answered that, then you will be able to choose from any of the payroll processing options that would make your life easier.
Having dedicated staff just to process payroll can be a challenge for smaller organizations as they are bound by several constraints, so the easiest way would be to outsource it to a third party.
We at Starkflow offer the most simplistic solution out of all for processing the payrolls. We work as an extension of your core team and take the weight off your back by handling the entire payroll, HR, and Admin system entirely by ourselves.
We do so by the means of our own legal entities in every country who are nothing but local partners, well-versed with local labor laws and knowledgeable about other taxation and compliance formalities required for that country. This ensures that you’re free of the unwanted headache of traversing through the internet, learning about how taxation works in all countries. We go as far as to assist you move out of your current arrangement if you’re already using some other service.
As an extension of payroll processing, we also provide escrow services to our clients, where we act as a mediator between the clients and the contractors and process the payment once the task is completed.
Running your payroll through us would help you ensure that the payroll processing is affordable, faster, and comes with added benefit of taxation and compliance.
React out to us if you’d like to talk to one of our tax experts.