Payroll outsourcing is a good option for businesses that aim to save time and resources, and focus on critical activities in their operations. With offshore outsourcing, you can build a dedicated remote team who can take care of your entire payroll process similar to how you do it in-house. You have the option to choose the talent you want to hire and the process that you want to incorporate, and implement. you have control over your team even if they are outside your country.
Building an offshore payroll team has plenty of benefits to businesses from any industry. Here are a few reasons why you should consider outsourcing your payroll functions.
Your offshore payroll team will be responsible for gathering accurate employee data related to payroll. They will follow the payroll calculation process and tax policies in the region or country you operate in. The process depends on your base of operations, but commonly, it includes calculating hourly or salary gross wages, deductions, and taxes. If employees have other benefits and deductions, such as retirement plans or provident funds, your remote payroll team should also include them in the calculation process.
Through finance and accounting outsourcing, you can access highly-skilled Payroll professionals who can do these tasks and ensure the accuracy of your data.
No matter how many employees your business has, managing payroll is time-consuming, from annual leave and taxes per employee computations to employee onboarding and resignation. It will take weeks or months to compute everything before finalising a payroll.
By building an offshore payroll team, you can allocate more time to focus on the core functions of your business. They can handle all payroll related processes, so you can prioritise more critical business activities, such as sales, product development, human resource, and operations.
Outsourcing your payroll is more cost-effective. Building your remote payroll team in one of the top outsourcing locations, such as the Philippines, will save you up to 70% on the employee costs.
Tax regulations and laws are constantly changing. Outsourcing payroll can ensure that your business is always compliant. Your remote payroll team can help you stay updated with the regulations, file taxes, pay statutory dues, and manage audit trails.
In addition, your outsourced payroll team can provide a simplified process to streamline all your employee information.
Mitigate Payroll Mistakes
Payroll mistakes can cost a fortune for businesses and employees. For employees, missed hours or miscalculated rates can affect an employee’s pay, leading to frustration and resentment. For employers, payroll errors or tax miscalculations can cause fines and penalties. Even if these errors are seen earlier, this will still cause re-computation of hours and reprocessing of paychecks. According to the Internal Revenue Service (IRS), more than 1.8 million tax returns were audited last 2016, and 978,564 were assessed for civil penalties. By outsourcing this function, you can reduce and mitigate these risks.
You can avoid cases of fraud, embezzlement, and tampering of data with the help of your remote payroll team. Your expert offshoring partner ensures that your remote payroll team is supported with Tier 1 infrastructure and protected with enterprise-grade data security to safeguard your confidential data.
Once your payroll is fully integrated with an employee’s time and attendance, benefits, and other HR requirements, data accuracy is improved. Your remote payroll team can help ensure that all employee’s deductions are aligned, taxes are well computed, and all employees will receive their paychecks on time. Data integration can benefit companies, such as cost-saving, decision-making, productive efficiency, and team collaboration.
Start Your Journey with Satellite Office
Offshoring your accounting team in the Philippines can be a game-changer for your business, especially if you have the right offshoring partner.
Satellite Office has a proven track record of assisting businesses to leverage the benefits of outsourcing by building them a dedicated, highly skilled, and cost-efficient offshore team in the Philippines.
Our tailored offshore outsourcing solutions give businesses full control of their remote team’s productivity, output quality, and targets while we provide comprehensive support that makes managing offshore employees as simple as possible. Experience a full-service model, including premium facilities, HR, IT infrastructure, account management, and payroll support services, with no hidden fees.