Posted 6.05. 2020 by Cekindo / Last update on 7.08. 2020
It is hard to believe a massive number of businesses in Vietnam pay hundreds and even thousands of US dollars for their payroll penalties every year. The money that is wasted on these penalties can be put into good use for other business activities that promote business growth. This is why foreign individuals or companies decide to do payroll outsourcing in Vietnam.
In other words, they hire external payroll professionals to help them with their Vietnam expansion to save time and money.
Payroll outsourcing for Vietnam business expansion can reduce the need for in-house trained payroll employees, ensure compliance with Vietnam’s payroll legislation and forgo the requirement for buying and maintaining proper and updated software packages.
It is certainly a cost-effective solution regardless of the complexity of the organisation.
1. Managing Payroll Effectively
Comprehensive payroll reports are mandatory for efficient payroll management. With a qualified payroll outsourcing provider, you will get highly-organized and formatted payroll reports regularly with the most updated payroll info.
2. Complying with Payroll Regulations in Vietnam
It is a challenging endeavor for foreign investors to understand Vietnam’s legislation regarding payroll, labor, tax reporting, accounting, and auditing.
The challenge gets even more exhausting when the Vietnamese laws change from time to time as the country is still rapidly developing.
Therefore, without fully grasping and updating the regulatory requirements, you run the risk of misrepresentation of your tax and payroll reports. Consequently, non-compliance leads to heavy penalties.
3. Saving Money and Time
This is probably the most important reason and that’s why we save it for the last. It’s universal that one of the reasons businesses exist is to earn profits. Saving money and time means a higher bottom line and more productivity.
Managing payrolls means you need to take care of everything from tax reporting to hours and salaries calculations, paycheck distribution to paperwork and documentation.
All these activities added up will take a substantial amount of time away from your productive hours.
With payroll outsourcing, these mundane tasks will be well taken care of and you’ll eventually realise that it saves you a lot of money.
The service level and quality of payroll outsourcing vary. Some suppliers are subpar while some are excellent; some just provide barebone services while others offer expansive services that deal with almost everything related.
Here’s how you can choose the right payroll provider.
1. Doing Research is Mandatory
The first step to finding the right payroll services supplier for your Vietnam expansion is doing research. Plenty of payroll providers are available in Vietnam, but only some of them will fit your business requirements.
Why not use the internet? Conduct a few searches and you will realise that most of the information you need is readily available. Explore the supplier’s website and other third-party websites about the company. Remember to look at the reviews as well.
2. Knowing What is Required
Of course, you must know what your business needs before you can choose the best one among so many options after your research.
Several questions you need to ask yourselves: how many employees do you have? Which city in Vietnam would you like your company to operate in?
When your answers are determined, you can then do a narrow search on the internet to find your perfect match.
3. Obtaining Details and Quotes
Finally, once you’ve done the due diligence, you can move on to make a call or send in a request for more details and quotes.
The response the provider gives to you will provide you insights on how comprehensive their services are, how well their customer service performs, and how valuable their services are based on the quotes they provide.
Are you looking for a payroll outsourcing service provider that can cater to your company’s payroll processing for your Vietnam business expansion?
Be it a small-medium enterprise, multinational corporation or public listed company, Cekindo offers customised payroll services that can help you succeed.
Through our payroll services, you have the potential to save your business significant costs as compared to a full-time, in-house employee.
Be in touch with Cekindo for a free and no-obligation discussion. Our team of experienced consultants can help you with your unique payroll requirements.
Fill in the form below.