According to Bigcommerce, payroll is one of the most outsourced jobs today. So, what is payroll outsourcing? Payroll Outsourcing is the process by which an organization hires an external party to contract either one or the entire payroll function to perform the tasks.
In the Philippines, a lot of local companies outsource payroll processing because of the complexity of the labor laws, high overhead costs and most of all, the struggle that business owners face when dealing with government compliances. That’s why for foreign companies that plan to establish a branch office or an offshore operation, outsourcing this non-core function to a top payroll services provider is a smart move to maximize resources and focus on growing the business.
Some Advantages of Payroll Outsourcing Services
Higher employee productivity and retention rate
Paying the employees right and on-time can greatly affect the success of your business. That’s why every company invests a lot of resources to ensure the satisfaction of the employees. In fact, when you browse some company review sites, bad payroll practices are one of the reasons for the low employee retention rate.
Visible reduction of costs
Outsourcing payroll management can significantly cut time-consuming processes that come with tremendous overhead costs for employing payroll management professionals, acquiring payroll software and regular replenishment of office tools and supplies.
Worry-free outsourcing model
Since payroll service providers take full responsibility for filing taxes and remittances at the required deadline, it completely frees business owners from the hassle of dealing with government agencies and the burden for paying varying penalties for late submission and discrepancies in reports that at times happen when done in-house.
Payroll Services in the Philippines
During the pre-BPO era, PNI International has served international clients for payroll and HR support services in various industries. Being a POEA-licensed agency, it enabled us to deliver HR and payroll services to clients with Filipino workers deployed in its project location overseas. However, it has dramatically changed when the offshore outsourcing industry has boomed that left the traditional service model for which clients brought the job in the market including that also benefits local service providers.
For payroll outsourcing, there are outsourcing providers that offer a range of payroll services and there are also ones that provide end-to-end HR and payroll outsourcing services like Grupo BPO, a diversified outsourcing services group. It can take care of everything you need to establish a fully-operational business in the Philippines.
Below are the basic services offered by payroll outsourcing companies in the Philippines:
- Salaries and wages computation and disbursement
- Calculation of additional pay as applicable to the employee
- Benefits remittances to SSS, PHIC, HDMF
- Tax remittances to BIR
- Payroll and other required reports
So what are the things to take into consideration when you decide to work with a payroll outsourcing service provider in the Philippines?
Does the provider always meet deadlines for filing taxes and benefits?
Does the provider offer a competitive pricing structure?
What technologies do they use and how user-friendly?
How secure are the services?
Any add-on services do they offer?
When you have all the above things in mind, you are now ready in your journey to finding the most suitable payroll outsourcing provider in the Philippines.