Businesses and Tax Finalization for Employees
October 19, 2021
Employees' personal income tax returns are the responsibility of the company. However, there are still limitations and obstacles that businesses face when finalizing their employees’ tax returns.
Talentnet’s professional salary calculation system has the ability to integrate employees’ personal income tax returns.
Personal income tax returns for business
Individual income tax is an amount that income earners must take from their salary and deposit into the state budget after deductions (if any), and these individuals are required to make personal income tax finalization. This is a regulation that requires checking the entire income and calculating the tax payable based on the income level and family circumstances, then submitting the dossier to the tax administration agency and dealing with related issues.
Currently, the business where the employee works will finalize the employee’s personal income tax. The HR department will have C&B staff in charge of checking and withholding personal income tax on a monthly basis before paying employees’ wages, and then making tax finalization as needed.
Obstacles that businesses face when finalizing their employees’ tax returns
Taxation is usually completed within the first three months of the calendar year. This time of year puts a lot of strain on the internal C&B team because they have to finalize personal income taxes for employees while also checking and making payroll, annual bonuses, and Tet bonuses. Errors are common with a large and complex workload, affecting overall progress. Furthermore, the need to regularly update the latest regulations consumes the HR department’s time, making it difficult to focus resources on determining the strategy and achieving goals.
Solutions for businesses
In light of the aforementioned challenges, using an outsourced payroll service is a reasonable and effective solution for the internal payroll team and the enterprise.
Companies like Talentnet’s professional salary calculation system has the ability to integrate many different HR systems, making the arrangement and storage of data consolidated and streamlined, thereby assisting the inspection process, Reconciling salary, bonus, and tax information made simple. As a result, when performing tax finalization, the time required to prepare documents is reduced, and your time and effort are saved and optimized.
Payroll service providers keep current legal regulations on tax and the personal income tax finalization process up to date, allowing businesses to complete tax finalization quickly, accurately, and on time while remaining in compliance with the law. When issues arise with relevant agencies, these units can easily and skillfully handle the situation because they are familiar with the necessary processes and procedures.