Benefits of Payroll Outsourcing in Indonesia – Payroll processing is one of the important administrative activities in the company. This activity is routinely carried out but it is time consuming and complicated. Payroll is not only about providing compensation to employees, but also related to various rules such as tax calculation, overtime and social security payments. Therefore, a proper and correct payroll system and management is needed.
To have a good payroll system and to make sure the payroll is accurate, companies usually have a specialized department and hire experienced and skilled employee in this regard. However, this will require large resources and costs.
Alternatively, companies can used payroll outsourcing services. Payroll outsourcing means to use third party organization to handle some or all of payroll administration. There are several benefits of payroll outsourcing, including:
1. Save cost
Payroll outsourcing in Indonesia can also save the company’s expenses and even help increase the company’s productivity. By using payroll outsourcing services, the company does not need to hire and train employees for payroll matters, there is no need to pay salaries and taxes for these employees, and there is no need to buy necessary tools such as an expensive accounting software.
2. Companies can focus on their core activities
Payroll work is not a core business in a production company but its role is very important for the sustainability of the company. Therefore, using payroll outsourcing services will help many companies to focus more on their core activities, such as increasing productivity, sales and expanding business.
3. Avoid any mistakes and ensure regulatory compliance
Errors and mistakes in calculating the payroll may result to fine by the tax department or any other relevant authorities due to inaccurate calculation of taxes and social security. Through payroll outsourcing, the company submits the payroll work process to a team of experienced professionals. These professionals are more familiar with the complexity of the matters related to payroll such as taxes and social security. Not only that they are usually well informed with the changes of the regulations. Because of that they are far less likely to make any mistakes when calculating and reporting the payroll than the in-house staff.
Whether it is for newly established with limited budget, or seasoned company which want to focus only on its core activities, payroll outsourcing is one alternative to ensure a good and accurate payroll administration.