Payroll Outsourcing In Vietnam – Simple Way To Pay Your Employees

Vietnam Business Gateway
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Reasons for outsourcing your payroll in Vietnam?

With its market opening and policy changes aimed at attracting and facilitating foreign direct investment, Vietnam has undergone the most remarkable transformation in recent years. Not only are there more new businesses in Vietnam, but there are also more foreign companies expanding their operations in the country.

To keep up with their growth, these companies require a variety of outsourcing processes. Payroll outsourcing is one of the most commonly outsourced business processes in Vietnam. This is due to the fact that managing payroll in Vietnam is more complicated than most business owners imagined, especially when it comes to understanding Vietnamese regulations, labor laws, employment practices and culture.

With the legislative changes in 2018 regarding mandatory social insurance payments and payroll for foreign workers, understanding all relevant regulations is critical for businesses.

Benefits of using payroll outsourcing in Vietnam
1. Business compliance guaranteed

Foreign companies find it difficult to understand Vietnam’s labor and payroll regulations, accounting and auditing, and tax reporting. Not to mention that the law changes from time to time due to the rapid growth of the labor market and the overall economy of the country.

Payroll calculation in Vietnam is complicated and varies depending on region classification, minimum wage, and overtime payment. For example, in Vietnam, the national and regional minimum wages can affect the mandatory contribution of companies and employees to state insurances, thereby affecting the amount of PIT paid to the government each month.

You are still legally liable as an employer for any misrepresentation of payroll and tax reports. Even a single blunder can put your company in jeopardy and result in costly penalties. Because regulations change on a regular basis, you’ll need legal experts who understand tax law to keep up.

VNBG has a team of payroll experts who can ensure salary, social security, healthcare contributions, overtime wages, PIT calculation accurately and compliant.

Read more: Understanding Social Security in Vietnam

2. Minimize legal risks

For companies that do not have a presence in Vietnam but still need to hire employees, VNBG offers a service to help them outsource this responsibility. It means that VNBG will act as the employer on behalf of our clients in order to fulfill their obligations to their employees and the government.

This approach, also known as Employer of Record, is an excellent HR outsourcing solution in Vietnam that can assist businesses in avoiding major risks associated with labor law violations.

Even companies with subsidiaries in Vietnam can consider this service if they do not want to bear the burden of hiring and signing labor contracts.
Read more: Employer of Record service in Vietnam.

3. Cost saving

Using an outsourced payroll service allows you to avoid the expense of hiring a full-time employee to handle this task. It means you’ll have to add a new member to your team, which isn’t always a good idea from a business standpoint.
On the other hand, our employer of record services can assist foreign companies in resolving hiring issues without the need to establish an entity in Vietnam, which is an additional costly procedure. Payroll outsourcing cost is considered minor compared to this.

4. Organized and processional payroll processing

Payroll outsourcing provides you with everything you need in the form of comprehensive payroll reports to help you manage your payroll more effectively.

VNBG, as a reputable payroll outsourcing expert, is prepared to organize your company’s payroll and handle any changes you require. You will have access to all of your payroll information in an easy-to-understand and compact format.

5. Prioritize your business focuses and resources

Outsourcing time-consuming payroll tasks can free you up to focus on your core competencies for strategic business growth. When you have a lot of tasks on your plate, you’ll be distracted and won’t give it your all to implement all of the necessary strategies.
As a result, rather than attempting to learn and do everything yourself, you should focus more of your resources on what you do best. When you devote your resources, skills, and knowledge to supporting the core activities of your business, you will see your company grow.

How VNBG payroll outsourcing work

Our payroll system is also cloud-based and easily accessible online. All employee data is kept in a secure location, including personal information, contracts, and salaries. The online payroll system also simplifies the management of employee absences and attendance.

Every month, we will start our payroll calculation by the cut-off date and send the table for approval before sending it to the accounting team to process the payments. All relevant reports are guaranteed to be submitted on time. The client can run through periodical checks or inspections whenever needed.

Outsource your payroll to VNBG

Vietnam Business Gateway – VNBG is a professional payroll outsourcing provider with HR and payroll specialists who are well-versed in payroll processing. We specialize in the complexities of payroll taxes and compliance with government regulations.
Talk to us now today to find a solution for your payroll needs.

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Micheal Dinh

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