Why Should Foreign Businesses Need Local Payroll Companies?
April 7, 2021
Salary and bonuses are amongst the vital factors in building an effective human resources management strategy. Yet, for foreign businesses that are not familiar with the new business environment, it is advisable to find a reputable payroll compliance practitioner located in the host country to optimize budget and cost-efficiency.
Local payroll companies often provide factual information and are willing to upgrade/ adjust their system to meet different customers’ needs
Below are three reasons why foreign businesses should consider hiring a certified payroll specialist in the host country:
Thorough understanding of the laws and regulations
The laws and regulations with respect to taxation are different in each country and may vary according to the market context. This requires the payroll compliance practitioner to constantly stay updated with the latest changes to clearly understand the local laws and regulations, thereby better handling all salary and bonus issues. Capitalizing on this local service’s competitive advantage can help foreign businesses reduce the workload and mitigate errors and legal risks that businesses may face.
Flexibility in handling the issue of salary calculation
Some foreign businesses, regardless of their working market, often choose to partner with only one service provider, usually a large-scale, global enterprise. This is entirely reasonable, but the downside is that the large partner’s system may encounter some problems when it comes to adjusting to suit each locality. Often, they do not understand clearly what the local regulations are; and the larger and more complicated the system, the more difficult it is to adjust.
In contrast, local payroll companies often provide factual information and are willing to upgrade/ adjust their system to meet different customers’ needs, making the workflow fast and flexible. Ideally, a foreign business should choose a local company that both understands the domestic market and operates according to international standards. For example, Talentnet – a pioneering company operating under local knowledge guidelines combined with international methodology, provides a consistently exceptional global payroll service catering to each business.
Maximize cost efficiency for businesses
To provide a competitive advantage, local payroll companies tend to set the service fee more affordable than large providers, even though the commitment to service quality does not make much difference. Even the costs incurred in local companies’ working processes are also lower than those of global providers, enabling businesses to manage their salary budget better and avoid exceeding the initial budget. In the long run, businesses can have more time to focus on critical business goals, instead of carrying the burden of paperwork and human resource procedures.