Payroll Outsourcing – Why You Should Consider Outsourcing Payroll to Asia
Payroll outsourcing, the practice of engagement of an external party (Third Party) to handle activities related to Payroll has proven to reduce operational costs and save time and effort which could be allocated to fulfill the tasks that could be more productive to a business. Therefore, this outsourcing model is useful as well as beneficial many organizations i.e. organizations having a moderate or a large-scale payroll.
In Asia, Sri Lanka is rapidly emerging as a hub for payroll outsourcing and business process outsourcing in general. Sri Lanka with its growing talent base and government incentives for outsourced service providers, has been an attractive services hub for foreign companies over the past decade. Useful facts about the benefits of payroll outsourcing and how this business works, are given below in the article.
What is Payroll Outsourcing?
Payroll outsourcing is the practice of outsourcing the payroll functions to an outside specialist firm, rather than doing it in-house. Payroll process entails maintenance of employee records; calculations of the salary, allowances, bonuses and other payments to the employee; statutory payments; issuing pay sheets, running reports related to payroll and complying with the taxes implemented by the government respectively.
Payroll outsourcing may work within the country (home-based or domestic payroll outsourcing) or globally (international payroll processing)
Outsourcing Payroll to Asia:
As the size of any organization or company increases, complications with respect to Payroll processes also increase. Outsourcing payroll can help your organization streamline payroll while ensuring highest levels of compliance. All the hassle related to payroll-related activities will be taken care of by a third party.
Benefits of Payroll Outsourcing:
The advantages of Outsourcing payroll are as follows:
Cost-Effective / Cost Saving:
Outsourcing of Payroll can save a significant amount of money when compared with in-house operations, especially as the payroll gets larger. In Addition, investing in the essential computer equipment and specialized software required for smooth functioning of payroll could be an expensive investment. In addition, the employees handling payroll have to stay updated about the advancements or changes in regulations. Outsourcing your operations can help you overcome regulation and compliance-related problems or even give you the versatility to process payroll across different regions.
Save Time and Increase Productivity
Time is Money! Processing payroll in-house could be a complicated and time-consuming endeavour. Attending to HR administration matters such as wages, allowances, bonuses, new hires, statutory payments, and termination, while keeping your eye on business operations is a hectic and frustrating tasks. You could focus on what makes your organization profitable by outsourcing your payroll.
While working with the international outsourced payroll provider, you will get the opportunity to work with the experts of the industry. If you are working with several countries simultaneously, you need professionals who have complete knowledge of the local rules and regulations.
One of the most crucial tasks of small and medium-scale agencies is to adhere to the mandatory rules, regulations, and laws. Especially when working in a foreign country. There could be regulations related to taxes, insurance as well as statutory payments. Payroll becomes more complex when operating internationally and it is always best to utilize a firm with local expertise to avoid a lawsuit.
Do you have time or the systems in place to closely supervise your enterprise’s employees regarding unethical activities like identity theft, tampering with the agency files for personal benefits? Specialized outsourcing agencies possess the right tools and software. This means that your organization does not have to worry about investing in cutting-edge payroll processing HR software suites.
Outsourcing payroll can be a cost-effective way to pay your employees abroad. It helps in saving time, staying compliant and could enhance productivity if you use the right partner to work with. Your organization must identify regulations with respect to payroll before expanding to foreign markets.