What can payroll outsourcing services do?

Payroll Outsourcing Services: According to Good World’s observation, under the circumstance that the external business environment of enterprises is unstable, more and more large enterprises believe that the difficulty of salary management is increasing, and the system supporting salary management is becoming more and more powerful and complex, and the maintenance costs are also increasing. Higher and higher. To this end, to realize an effective salary management strategy, retain talents, and bring continuous support for the future development of the enterprise, more and more large enterprises have begun to cooperate with human resource outsourcing companies to seek salary outsourcing management solutions.

Here are the articles to explain, payroll outsourcing services, meaning, benefits, advantages, and disadvantages

What does payroll outsourcing mean?

Salary outsourcing business in principle pays wages once a month. In addition to wages and salaries, year-end bonuses, other bonuses, allowances and subsidies, and labor dividends all belong to the category of wages and salaries. Because some companies pay wages in cash, doing so is not compliant and is easy to be subject to tax audits. Therefore, the salary to be paid by the enterprise is paid in the form of salary outsourcing. Which is legal and compliant. You can read more on this website to understand payroll outsourcing better. 

The process of salary outsourcing includes:

After the enterprise signs the formalities with the outsourcing company, it goes through the relevant business. The salary card and passbook are produced by the outsourcing company Unified Bank, and the salary card is punched and paid. Generally, legal employers that use payroll outsourcing services will require users to apply for the bank card of the corresponding bank. Because only in this way can unified management be achieved and wages can be paid quickly.

The salary, welfare, reward, and punishment system involved in the salary outsourcing business decide by the enterprise. Also, the outsourcing company is responsible for contacting other financial institutions and handling relevant procedures. Such as loss or replacement of the payroll card. The outsourcing company determines the number of wages payable according to the content of the agreement and the assessment method of the unit and pays wages every month.

Salary outsourcing business in principle pays wages once a month. In addition to wages and salaries, year-end bonuses, other bonuses, allowances and subsidies, and labor dividends all belong to the category of wages and salaries. Because some companies pay wages in cash, doing so is not compliant and is easy to be subject to tax audits. Therefore, the salary to be paid by the enterprise is paid in the form of salary outsourcing. Which is legal and compliant.

What is the difference between payroll outsourcing and corporate payroll?

The difference between salary outsourcing and the company’s salary payment lies in the main body of salary payment. Wages are paid directly to employees by employers and legal employers through their accounts. While salary outsourcing entrusts employers and legal employers to banks or outsourcing companies, and banks or outsourcing companies pay wages to employees uniformly.

Many companies choose to use payroll outsourcing services to make payroll more compliant and efficient. That’s all for an explanation of what payroll outsourcing means.

Benefits of Payroll outsourcing services do list;

Admin has listed the following for you:

• Payroll and social security provident fund accounting and payment;
• Salary payment;
• Compliant commission settlement;
• The service fee issue on behalf of the company;
• Also, Social security calculation and declaration;
• Individual tax optimization, declaration, and withholding;
• Other items agreed with customers.

In addition, the value that payroll outsourcing services can bring to enterprises is as follows:

• Optimizing employment costs such as wages, social security, etc. for customers;
• It can optimize the personal tax for customers, and improve the actual income and satisfaction of employees under the same expenditure;
• Salary is timely and accurate to account, reducing workload by 99%, and tax declaration is 0 workload;
• Comprehensively improve the accuracy, timeliness, and security of enterprise salary management;
• To help companies free themselves from transactional payroll business processes and engage in strategic and strategic work.

All in all, along with the changes in the market salary level and enterprise operating conditions, salary management is becoming more and more complicated. Compensation structures and levels also adjust as the market and business operations change. In addition, problems such as large-scale data entry, cross-regional salary distribution, and salary distribution for foreign employees have increasingly plagued human resource managers of enterprises. In Admin’s view, it is also a good idea to outsource the salary management sector to human resource outsourcing companies.

Advantages and Disadvantages of payroll outsourcing

Payroll outsourcing means that companies outsource the management of payroll to third-party service agencies. A professional salary outsourcing service company can reduce the burden of enterprise management, save costs for the enterprise, and develop an efficient and standardized direction. Today, the editor of Huanchuang will take a look at the advantages and disadvantages of salary outsourcing with you, to help enterprises make better choices.

The advantages of payroll outsourcing

1. Reduce the labor cost of the enterprise: Salary outsourcing makes planning in advance through refined management and some preferential policies to reduce labor costs for the enterprise;
2. Improve the efficiency of enterprise human resources management: use advanced technology to pay salaries and pay income tax to various branches of the enterprise. Salary outsourcing frees enterprises from complicated salary affairs and focuses on more valuable work.
3. Risk transfer: With the implementation of the fifth phase of the Golden Tax, the human resource data of the enterprise is grasped by the tax department. Legal compliance is the foundation of the enterprise’s survival. Use salary outsourcing to make salary payments comply with regulations and avoid the risk caused by salary calculation and payment errors.

The disadvantages of payroll outsourcing

For enterprises, payroll outsourcing does not have many disadvantages for both enterprises and employees. If there are disadvantages, they may cause by the choice of the enterprise. Some companies are relatively small and do not need to do payroll outsourcing very much. Payroll management is relatively simple, and they can do it themselves. But they follow the trend to buy this service, resulting in increased costs. Or the company has found a less professional and less formal salary outsourcing company to cooperate with. Which has caused problems with financial security and caused many unnecessary risks.

Summary:

After talking about the advantages and disadvantages of payroll outsourcing. We know the importance of choosing a reliable payroll outsourcing company. Huanchuang Group is a well-known salary outsourcing company in China. It has been deeply involved in the human resources industry for 12 years. It has a professional human resources background and strong financial strength.