Posted 8.04. 2020 by Cekindo
Payroll is an important function of every business. As your business continues to grow in Vietnam, you will need additional support to keep every function in your company going smoothly.
However, it’s sometimes challenging to keep up with these functions such as payroll. What is more, many business owners feel that their in-house teams do not have the necessary expertise to handle the demanding payroll processing.
Much like other business functions such as recruitment, accounting, customer service, IT and content marketing, payroll is not just a once-in-a-while task but a monthly duty that has to be taken seriously and meticulously.
Careless payroll handling or management in Vietnam may give rise to unmotivated and dissatisfied employees or even non-compliance is related to corporate tax.
As a result, payroll outsourcing in Vietnam will be a smart move for businesses and it enables companies to focus more on core business activities and strategies for growth.
Here are the pros and cons of payroll outsourcing in Vietnam for you to ponder on to see if you need one for your business.
Expertise and Experience
Payroll outsourcing providers are experts in this field to make sure that your employees are being paid accurately and on time.
They also ensure that all taxes with regard to payroll are handled and reported correctly for tax compliance.
These experts deal with the complexity of the payroll and taxes, especially if you have several locations across the world.
They help you avoid heavy and unnecessary non-compliant penalties by keeping you up to date with the latest requirements.
Time and Cost Savings
Many companies in Vietnam struggle with time and costs doing their payroll in house.
A full-time employee that is salaried monthly is not cheap and it takes time for this new employee to go through the learning curve to be able to handle the payroll properly.
Therefore, an enormous amount of time and money is spent.
So when payroll is outsourced, you can free up a lot of time and money and use the resources in other areas such as marketing and specialised training.
Privacy and Security Concerns
Companies may have concerns in regards to identity theft and payroll data breach when it comes to outsourcing.
If one of these events does happen, it may put your employee’s privacy and security at risk.
Lack of Complete Control
No complete control over payroll management is also one of those things that companies are reluctant to outsource.
For example, if an urgent input of certain payroll data is required over the provider’s office hours, the company will have to wait until the next day.
Of course, when you look at a bigger picture, the pros of payroll outsourcing in Vietnam always outweigh the cons.
Here are other benefits a company can enjoy when partnering with an outsourcing provider:
Handling the employee’s payroll, especially in a foreign country, can cause unnecessary stress and strain on the resources of your company.
Vietnam has very different tax requirements and the regulations may change quite often.
Furthermore, the payroll process is time-sensitive and that’s why payroll outsourcing in Vietnam may be an ideal solution for companies to avoid late payments and promote the employee’s satisfaction and morale.
With payroll outsourcing in Vietnam from Cekindo, you will have an expert on your side to help guide you all the way, guaranteeing that your business is compliant with the Vietnamese legislation and timely fund remittance.
Cekindo will work in tandem with your in-house HR personnel or administrators to standardise your payroll process under the local requirements.
Let us serve you through our single-point-of-contact for your payroll matters in Vietnam.