Every enterprise that hires employees needs a type of payroll procedure for paying them. For companies registered in Hong Kong and most of the neighboring jurisdictions, the compliance requirements or labor laws are pretty complex. For example, Hong Kong labor laws require that all the wages must be processed no later than the 7th day after the close of the wage period.
Again, you must make all the statutory deductions, such as PPF Account and withholding taxes, among others. When you combine all of these with the running of your company, things can get really challenging. So, is there a way out?
The answer to complexities associated with payroll management can be addressed through payroll outsourcing in Hong Kong. With the right payroll management service, you can concentrate on growing your business in Hong Kong and neighboring markets as experts handle the payroll. Keep reading as we reveal the main services you can outsource from top firms.
What is Payroll Outsourcing?
Payroll outsourcing in Hong Kong means contracting an external firm to deal with some or all payroll-related activities. Most companies in Hong Kong go for payroll outsourcing to cut down associated costs and deal with changing compliance landscape.
Another important advantage of payroll outsourcing is that you do not have to worry about training staff or maintaining expensive software because the firm you outsource the services from already has the best.
We must indicate that outsourcing payroll services comes with benefits for all companies. With a good payroll outsourcing firm in Hong Kong, you can even handle all payments-related requirements for firms with branches in different countries. For example, you do not have to hire a different payroll firm to deal with a representative office (RO) in China or other APAC-based countries.
Services You Can Outsource from a Payroll Services Provider
Payroll outsourcing Hong Kong can help you with a long list of services in your company. Remember that this will depend on whether you contract the firm to handle only one area or entire payroll management. Here are some of the main services:
Processing Your Company’s Payroll
This is probably the main service you should expect from payroll services providers. The firm you contract will do all calculations to determine how much your staff should be paid for the period under consideration. This means factoring in the wage rates, overtime, taxes, holiday pay, and shift differentials to determine how much your staff should take home.
Then, the payment to staff is made via different methods, from bank transfers to paper checks.
Paying Tax payroll and Filling for Tax Returns
When you work with appropriate payroll outsourcing services providers, they withhold employee taxes and correctly file related tax reports. Then, they remit the necessary statutory deductions to the Inland Revenue Department (IRD) or other bodies. If your payroll had errors, probably because of incorrect handling in the past, payroll outsourcing Hong Kong can help to fix that.
New Hire Reporting
After hiring new staff, they are required to be reported to the government for record-keeping on employment rates and planning. Again, the outsourced firm will come in handy to help accomplish this task. Apart from reporting, your company will also be assisted to integrate the payroll services with other programs, such as HR management software, attendance system, and accounting program.
Payroll outsourcing Hong Kong (same in Singapore for your business) is used by most companies to ensure they comply with all related regulations. With a good firm, you are sure of enjoying even more. For example, the contracted payroll management firm can help you look at areas that are lacking in your talent management and even train your staff on some payroll tasks. To get more from payroll services, make sure to only select and work with the best.