Vietnam has experienced the most phenomenal transformation over these years with its market openness and policy changes to attract and facilitate foreign direct investment. Not only there are more and more new businesses in Vietnam, but there are also numerous foreign companies expanding their operations in the country. Various outsourcing processes, then, are demanded by these businesses to keep up with their growth. One of the most outsourced business processes in Vietnam is payroll outsourcing. This is because managing payroll in Vietnam is more complicated than most business owners thought, especially when it comes to the knowledge of Vietnamese regulations, labor laws and time of investments.
This brings to mind about recent changes in law in 2018 with regards to compulsory social insurance payment and payroll for foreign workers as it is highly critical for companies to understand all relevant regulations.
This article elaborates the top reasons your business needs payroll outsourcing in Vietnam.
Top Reasons for Payroll Outsourcing in Vietnam
1. Compliance with Vietnam’s Payroll Regulations
Vietnam’s regulations on labour and payroll, accounting and auditing, and tax reporting are not easy to grasp by foreign companies. Not to mention that the law also tends to change from time to time due to the rapid growth of labour market and overall country’s economy. The calculation of payroll in Vietnam involves a lot of formula and can differ based on hourly rate, minimum wage and overtime payment. For instance, GDP growth rate of Vietnam can affect the minimum wage rate anytime.
As an employer, you are still legally responsible for any misrepresentation of payroll and tax reports. Even a single mistake can jeopardise your business with costly penalties. Because regulations change constantly, you need legal specialists that understand tax law to keep up with the rules.
Cekindo has a team of payroll experts who can guarantee accuracy and compliance pertaining to salaries, social security, healthcare contributions, overtime, minimum wages, individual tax returns and overtime.
2. Cost Saving
As a business owner, you know that your time is money. This is because how much you earn will be linked to your ability to handle tasks at any given period. The time you are able to save and use on your core business activities each day is money earned.
With that being said, handling payrolls such as hours and salaries calculations, tax reporting, paycheck distribution, all the printing and signing, will take a big chunk of time away from you. You just have to try comparing the time you spend on these mundane tasks and the costs of outsourcing, and you will realise that your business can save a great deal of money.
3. Better Payroll Management
Payroll outsourcing provides you with everything you need on comprehensive payroll reports for better payroll management.
As a reputable payroll outsourcing expert, Cekindo is ready to organise your company’s payroll and handle any changes you need to make. You will be able to access all your payroll information in an easily understood and compact format.
Related article: Payroll Obligations in Vietnam in 2019
4. Ability to Focus on Strategic Business Growth and Increase Productivity
Outsourcing your time-consuming payroll tasks can allow you to be true to your core competencies for strategic business growth. When you have countless tasks piling up, you will be distracted and will not give it your all to implement all the necessary strategies.
Therefore, instead of trying to learn and do everything yourself, you should be spending more of your resources on what you do best. When you devote your resources, skills and knowledge to support the core activities of your business, that is when you can see your business growth.
Payroll Outsourcing in Vietnam with Cekindo
Cekindo is a professional payroll outsourcing provider with legal specialists who know about payroll processing inside and out. We specialise in the complexities of payroll taxes and government regulations compliance.
Furthermore, our payroll system is cloud-based and can be easily accessed online. All employee data, including personal data, contracts and salaries, are located in one dedicated place with secure access. The online payroll system also provides an easy way to manage employee leaves and attendance.
Talk to us now and we will suggest and implement programs that suit your payroll needs.