Precise Payroll Service

Payroll service not only helps companies saving time and money, it also helps them staying up-to-date with the law and labour regulations.  

Many many question why outsourcing has become so popular all around the world why many companies see outsourcing as a means of saving time to focus on implementing their business strategy. Human resource (HR) outsourcing is no different, becoming increasingly common in the world today where every organisation has to cope with a talent war and growing HR cost while still needing to maintain a good working environment for employees, be in compliance with the law and labour regulations, and bolster the business’s competitive edge.

Payroll outsourcing is a top priority for new companies in Vietnam, who pay much intention to legal compliance and the confidentiality of salary data. Payroll service is where an organisation uses external resource and professional systems to manage their payroll activities, from salary payments and insurance payments to personal income tax payments. Outsourcing payroll activities to a third party can help organisations not only utilise the vendor’s expertise to stay up-to-date with labour regulations but also sees them benefit from advanced systems that have been fully-tested and certified in term of security and back-up plans.

Furthermore, according to research, the total cost, consisting both of the personnel and management cost, for one payroll headcount is 2.5 or 3 times their monthly salary. Therefore, the cost of outsourcing to the payroll service provider is similar to the wage of one headcount, but organisation can make a huge savings on training, benefits, annual salary increments, and working space. Outsourcing payroll can also prevent new companies from other risks like incorrect salary calculations or being unaware of legal changes, which would need to be redressed on a later date with an accompanying cost.

However, the greatest concern for the most local companies when outsourcing their payroll process is the risk of confidential data being disclosed. Selection of payroll service provider therefore is crucial.  The best method is to do some research, checking with existing clients to gain an insight into the vendor. The flow of data and communication between client and vendor needs to be taken into consideration, to foresee any potential risk of information leaks. Well-tested and certified software to ensure security is a must. It is also highly recommended that the client and vendor conduct a trial to gauge accuracy and the integration between their two systems.
Payroll service is on the minds of most newly-established companies all over the world and is particularly useful given the evolving nature of labour regulations and local practice.

For payroll & HR outsourcing needs, please contact Ms. Nguyen Thi An Ha via email nguyen.t.an.ha@talentnet.vn or via phone (84 8) 6291 4188 – Ext: 400

If you have any questions, do not hesitate to contact our Payroll service in Vietnam.