How payroll services work?
The payroll process in Vietnam
Payroll service is a crucial aspect of running a business as it involves the payment of employee salaries, wages, bonuses, and deductions among others.
In Vietnam, the most common payroll systems that employers use include manual payroll, payroll software, and outsourced payroll.
Manual payroll involves having an in-house payroll team that helps the employer proceed payroll and salaries for employees. A payroll software as a platform offers all payroll assistance, including time tracking. Outsourced payroll is when a company hires a third-party provider to handle all aspects of payroll processing.
The payroll cycle in Vietnam is monthly for full-time employees and is paid on the last working day or as agreed within the employment contract. Part-time employees, independent contractors, and freelancers are paid their salaries as agreed within the employment contract. Employers are obligated to pay social security, medicare, taxes for each employees and so on.
The 7 to-dos in each payroll cycle in Vietnam
The process can be complex and time-consuming but outsourcing to a payroll service provider can simplify and streamline the process. In this article, we will discuss how payroll service works and the steps involved in the process.
Gathering Employee Information: The first step in the payroll process is to gather information about each employee, including their name, social security number, pay rate, and any deductions or benefits. This information is used to calculate payroll taxes, deductions, and employee pay.
Calculating Employee Pay: The payroll service provider will use the employee information to calculate the employee's gross pay, which is the amount earned before any deductions or taxes are taken out. This calculation takes into account the employee's pay rate, hours worked, and any overtime or bonuses earned.
Withholding Taxes and Deductions: The payroll service provider will then calculate and withhold the appropriate taxes and deductions from the employee's gross pay. These deductions may include social security, medical insurance, and personal income taxes etc.
Remitting Taxes: The payroll service provider will then remit the withheld taxes to the appropriate government agencies on behalf of the business. This includes filing the necessary tax forms, such as the forms for personal income tax, unemployment tax and so on.
Direct Deposit Payments: After all deductions and taxes have been taken out, the payroll service provider will issue payment to employees through direct deposit to their bank account.
Generating Reports: The payroll service provider will also generate a variety of reports if requested, including payroll registers, year-to-date earnings statements, and other appropriate forms. These reports provide valuable information about an organization's payroll expenses and can be used for tax purposes and record-keeping.
Employee Self-Service Portals: Many payroll service providers offer employee self-service portals, which allow employees to access their payslips, tax forms, and other payroll information online. This can save time and increase efficiency by eliminating the need for paper copies and manual distribution. In conclusion, payroll service is a complex and time-consuming process, but outsourcing to a payroll service provider can make the process more efficient and simpler.
The steps involved in payroll service include gathering employee information, calculating employee pay, withholding taxes and deductions, remitting taxes, issuing payment, generating reports, and offering employees self-service portals. By outsourcing payroll to a service provider, organizations can save time and increase efficiency, reduce potential risks of errors, and increase compliance with payroll laws and regulations.
Why Manpower Vietnam's payroll services?
There are many payroll services options in Vietnam today, but Manpower Vietnam is always a highly valued brand for its ability to provide high quality and highly compliant payroll services as well as up-to-date and deep understanding of payroll laws and local regulations.
In addition to payroll services, Manpower Vietnam also provides a wide range of services and flexible solutions to suit the requirements of businesses such as permanent recruitment and headhunting services, staffing, and outsourcing labor, payroll services, outsourcing the recruitment process (RPO), HR consulting and training among others.
Read more about our Payroll Services and to explore other innovative HR/workforce solutions of ManpowerGroup Vietnam, reach out to Our Services page or input your contact information in the form below and we will get back to you soonest: