By Van Nguyen – Payroll Manager, Links International Vietnam
Managing your company’s payroll function in-house is challenging anywhere in the world, and companies operating in Vietnam are no exception. Whether you have three employees or 300, manual payroll processing is filled with opportunities for human error. Here are the top 3 benefits you can enjoy by choosing payroll outsourcing in Vietnam instead of a “DIY” approach.
Benefit #1: Frees Up Staff Time
To accurately calculate the salaries, benefits and deductions of your Vietnamese workers in a timely manner, fill out the required documentation and compile the payments is a time-consuming activity. Most businesses need to allocate a significant amount of a senior staff member’s time to calculating and processing the payroll, and because the person requires access to the company’s financial resources, it often ends up being the owner or senior finance team members who are responsible for this. Typically, those people are the executives responsible for the successful management of the company, liaison with primary clients or new business development, and their time is more appropriately spent doing their real work. By outsourcing your payroll preparations, you can make sure your top execs spend their time effectively, focusing on the company’s core business and doing what they do best.
Benefit #2: Reduces Costs (and Risks)
Outsourcing your payroll in Vietnam is a great opportunity to reduce your business costs. This is partly attributable to the point raised in benefit #1, because your senior execs’ time carries a higher value than junior staff, but it also saves you money in other ways:
- Reduced risk of fraud and increased confidentiality, due to less access to the company’s financial information.
- Fewer staff required, as no employees with specialised payroll skills are needed. And that’s not all—if you do spend the time and money to qualify one of your employees in payroll processing and then they resign, you’re watching all that cost and effort walk out the door.
- Less costly mistakes, such as overpayment and errors and the cost of rectifying them satisfactory.
- No need to purchase or subscribe to expensive software, and helps avoid technology challenges.
Overall, if you calculate the cost of doing your payroll processing internally and compare it with a price estimate from a reputable payroll service provider, you could be pleasantly surprised at the amount of money you can save.
Benefit #3: Avoid Government Department Issues
Getting into legislative trouble with the government is every business owner’s worst nightmare. Unless you’re completely comfortable with your knowledge of the legal requirements for taxation, social and healthcare insurance, it’s easier, cheaper and less stressful to choose payroll outsourcing in Vietnam instead of trying to “go it alone.” At best, errors can lead to legislative hiccups and a figurative rap over the knuckles. At worst, you could be sued or charged with defrauding local authorities because of an error. It simply isn’t worth the risk.
Leverage the benefits of having experts managing your payroll processing. A reputable company uses up-to-date software, remains abreast of the continually changing rules governing employee salary payments, and operates according to agreed services and quality standards. You’ll sleep better at night and your employees will have a better employee experience.
Are you looking at outsourcing your payroll in Vietnam? Get an instant, no-obligations quote now!