Before you start thinking of reducing administrative overheads in business, let us see what they are.

Administrative overheads are the costs which are not involved in the production of goods or service. Administrative overhead costs are the costs incurred for payroll expenses of employees, wages of casual workers, commissions, office equipments, legal and audit fees, research, development and statutory compliance.

Businesses having 20 or more employees usually spend an average salary of Rs. 4.50 lakhs or more per year for managing payroll and other statutory compliances according to the current minimum wages rates published by respective states of India. These costs can be reduced by outsourcing payroll and other compliances for an affordable price.

Eventhough your manager or controller is aware of statutory compliance under various legislation, it is very difficult to follow or aware of periodical changes in regulagions like minimum wages, shops and commercial establishment, factories, national and festival holidays, payment of wages etc made by Government in a timely manner.

It is also hard to overcome the situation when your controller leave your establishment for good with their knowledge and it is undestood that an average 40% of business establishments pay penalties for late or incorrect filing.

We can overcome these issues by outsourcing payroll process and other statutory compliance.

Direct deposit plays a key role in wage protection system. Direct deposit is a deposit of money by a payer directly into a payee’s bank account.

Wage Protection System (WPS) is a measure to safeguard the payment of wages of workers via direct deposit. In WPS, the payment of salary in private institutions will be made mandatory through bank accounts. WPS is an online monitoring system introduced by the State Labour Department, Kerala to ensure the payment of salary of workers in private sectors are not below the minimum wages prescribed. This will enhance the ability of Government to lessen labour disputes relating to wages and it will guard as a solution for employers against keeping large amount of cash at work places. Direct deposit is difficult if a company doesn't use an online payroll service. We can overcome these hassles by outsourcing payroll and other statutory compliance.