Payroll Outsourcing Companies in Vietnam 2024

Salary accounting (payroll) is an important part of a business, determining the rights of employees working at the company. The salary accountant’s task is to record, calculate and manage the company’s employees’ salary fund, and reflect invalid provisions, if any. In this article, let’s delve into the topic of how Payroll Outsourcing Companies in Vietnam work in 2024.

1. What is salary accounting?

Payroll Outsourcing Companies for managing, calculating and accounting salaries or salary deductions based on data from timesheets. In addition, payroll outsourcing companies are also in charge of managing documents related to employees’ income to serve the process of preparing payroll, paying salaries as well as insurance policies for employees accurately. most accurate.

2. Documents needed for salary accounting

In the process of performing tasks, payroll outsourcing companies need to use many types of papers and documents to ensure transparency and accuracy. Accordingly, the documents that need to be used include:

  • Timesheets
  • Company salary advance table
  • Employee salary advance slip
  • Salary and social insurance payment table
  • Detailed list of allowances
  • Employee salary slip
  • Salary payment via bank
  • Personal income tax finalization report
  • Social insurance reporting forms

Depending on each case, payroll outsourcing companies will need additional documents related to the board of directors’ decisions such as business trip papers, payment invoices during the work process, etc.

Optimize Outsource Payroll Cost for Business in Vietnam

3. Work of payroll outsourcing companies

For the job of a payroll accountant, there will be 3 main tasks: payroll management, salary advance management and main salary management.

3.1 Duties of payroll outsourcing companies

The tasks of payroll accounting are performed and tracked on a daily, weekly, monthly and quarterly basis. All activities are implemented in detail under the control of the leadership department. Include:

  • Record and reflect promptly and fully the current situation and fluctuations in the quantity and quality of labor, the use of labor time and labor results.
  • Accurately calculate salaries, bonuses, and benefits payable to employees.
  • Build a salary scale to calculate salary and submit it to the insurance agency.
  • Check the use of salary funds, social insurance, health insurance, and community insurance funds. Calculate and allocate accurately and to the right subjects salaries, social insurance, health insurance, and community insurance deductions into production and business costs.
  • Preparing reports on labor, wages, social insurance, health insurance, and community insurance is within the scope of responsibility of the accountant.

3.2 Manage employee salary advances

During the process of working at the company, there will be some expenses that arise for which employees need a salary advance. At this time, the payroll outsourcing companies will record and synthesize papers and documents related to advances and summarize each month. Specific tasks will include:

  • Directly manage salary advances in the enterprise.
  • Calculate the advance salary for an employee or a department in the business
  • Design a flexible advance payment form: for example, deduct 10% of the fixed salary.

3.3 Manage employees’ main pay periods

The final task of payroll outsourcing companies is to manage the main pay periods of employees. Normally, each department in the company will have different salaries, salary types and calculation methods. The accountant’s job is to design detailed and complete salary calculation forms based on previous agreements between employees and the company. Jobs will include:

  • Build a salary calculation period according to each type of salary, how to calculate working hours, starting and ending dates of the salary period.
  • Calculate income or salary deductions at the end of the period for employees.
  • Insert the spreadsheet of monthly salary advances into the final payroll to calculate the actual salary for each employee.
  • Build payroll based on employee information, pay period information and timesheets.
  • Calculate and deduct from salary the obligations payable to the State budget such as personal income tax and compulsory insurance fully and accurately.
  • Manage income other than salary to perform year-end personal income tax finalization.

 

The work of Payroll Outsourcing Companies must be done properly

>>>Read more: Annual leave record service in Vietnam

4. Notes when doing salary accounting

Salary accounting, like other accounting departments in businesses, requires work with high accuracy, transparency and fairness. Therefore, during the accounting process, accountants need to take some notes as follows:

  • Find out detailed information about employee salaries, bonuses, and allowances, as well as other factors that directly affect allowances.
  • Pay special attention to the salary policy of seasonal workers, probationary workers, and deduction levels before salary payment.
  • Understand clearly how to calculate and declare allowances and deductions.
  • See more information about taxable income and deductions
  • Learn about the latest salary deduction rates
  • Note the insurance registration procedures for employees
  • Factors that affect other human resources operations.

Salary accounting plays an important role in ensuring the rights of employees, while balancing the costs of the business. Payroll outsourcing companies are required to have good and meticulous calculation skills to ensure the process is carried out in the fastest and most economical way.

If you have any questions related to services of Payroll Outsourcing Companies in Vietnam 2024, please do not hesitate to send us an inquiry.

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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