Outsourcing Payroll Services Philippines: Benefits and Risks
PUBLISHED: May 7, 2021
For some people processing a payroll is easy but to some it’s tricky especially if the company employs thousands if not hundreds of employees. This crucial yet meticulous process can be the cause of many payroll masters’ headaches. This process includes recording of employee’s information, calculating of salaries and taxes, and complying to government requirements and deadlines. Sounds simple but it’s not. That is why many companies will opt for an outsourced Payroll Services Philippines. But what are the risks and benefits when a company chooses to outsource a payroll services Philippines?
Depending on the provider, risks and benefits will vary. Below are the following factors to consider in when a company chooses to outsource a payroll processing service:
|Value for Money
|Providers tend to help companies to save costs by outsourcing highly-skilled payroll masters than employing one themselves. And sometimes, even having their own Payroll Software can entail additional cost to the company.
|While providers want to help companies with their payroll difficulties, services fees can double up in the long run causing companies to invest more money than they bargained for.
|Most providers present agreements to companies that will make sure any data will not be used aside from payroll processing. They also have remote servers to keep a company’s data safe and secured.
|Aside from mistakenly trusting the wrong provider, sensitive company data is prone to hacking and breaches if put into the wrong hands.
|One of the benefits of outsourcing payroll services Philippines is that it allows a company to focus more on the business and its operation itself than trying to maneuver its long-tail payroll list.
|Sometimes things don’t go according to plan, that is the same with some providers who face challenges while giving their services. This can also affect the business process and its employees.
If a company chooses to outsource its payroll, here is the list that they need to provide in order to make the payroll process work:
- Employee’s Complete Details
- Copy of Contract of Employment (Current increment)
- BIR Form 2316 from the employee’s former employment
- Employee’s Attendance (Timesheet – regular working hours, OT, leaves and absences)
- Employee’s Payroll taxes and deductions from SSS, Philhealth, PAG-IBIG, and BIR; and
- Other documents that will support the requirements stated
Whether of not a company chooses to outsource payroll services Philippines or employ payroll masters, it is important to keep employees well compensated as they are the ones who works and runs the company. They are the assets that the company is lucky to have.