Payroll services have become a trend nowadays, not only around the world but also in Vietnam as well. Working with a payroll provider is the best way to help you save time, money, and other resources. Therefore, you can focus on your core business functions while they simplify and manage the payroll process. In the article, let’s find out what is a payroll provider, the benefits of payroll software and how to choose the right software for your business.
What is A Payroll Provider?
A payroll provider is a third-party company that helps businesses reduce the burden of processing payroll and controlling their payroll expenses, handling dossiers, social and health insurance, income tax, and other accounting-based tasks.
What Does A Payroll Provider Do?
Automatic payroll processing
This function ensures that all payroll deductions, including taxes, garnishments, and additional charges, are appropriately taken from employee earnings and paid on schedule. Particularly during tax season, a payroll provider can assist save both time and money.
Ensure compliance with regulations
One of the leading roles of a payroll provider is to keep your system up to date with the legal system to ensure you never run into legal problems or fines.
One of the best ways to maintain a balanced relationship between employers and employees is to give them accurate payroll on time. A payroll provider can generate comprehensive reports that include information on hours worked, taxes deducted from wages, and other aspects of their payroll processes.
Most reputable payroll firms have professional consultants ready to respond to customer inquiries quickly via phone, email or live chat.
Payroll Services vs Online Payroll Software
Payroll services are when you outsource a third-party organization, also known as a payroll provider to help process payroll and keep things running smoothly. It also gives you time to focus more on core operations and growing the business. One of the biggest downsides of hiring a payroll provider is the cost.
Ultimately, any problems are your company’s responsibility. That’s why when you think about outsourcing a payroll services provider, it’s crucial to find a trusted payroll provider to ensure everything goes right on track.
See more: What is a payroll service?
Payroll software can handle many aspects of financial operations, which lets you and your staff manage payroll easier
Compared with working with a payroll vendor, using payroll software is cost-effective. However, it may take time for team in your human resources department to learn how to do payroll tasks and become fully skilled. In contrast, a payroll provider can reach this point immediately because of their professional knowledge. To get the most value out of it, make sure you also check out its features and the fee.
5 Benefits of Using Payroll Software
Payroll is not only one of the most crucial operations for every company but also one of the most challenging company tasks because it requires collaboration across several departments, from payroll, HR and finance, etc.
Every company strives to operate as efficiently as possible to ensure that their employees and taxes are paid accurately and on time. For that reason, payroll software creates to solve those problems. Let’s see five benefits of using payroll software.
Making mistakes in the payroll system can be a nightmare for every business. One of the benefits of using payroll software is you can minimize the risk of human error. An automated payroll system can increase accuracy and efficiency. It not only lessens the administrative burden but also reduces risks for business owners.
Compared to payroll outsourcing services, using payroll software is cost-effective. Moreover, payroll providers also help you streamline the payroll process and avoid costly taxes, such as miscalculations or overpayment of employees. Besides, saving a ton of money allows these funds to be invested in other business operations.
Processing payroll is a complicated process. With the help of a payroll provider, payroll processing becomes easier, saving companies a significant amount of time.
Additionally, businesses can set up payroll software to automate their payroll process, then they can focus their efforts on growing their business while maintaining control for employee
One of the most important features of payroll software that every business owner is seeking data security. A secure payroll software system needs to ensure that personal information is not disclosed, to avoid being taken advantage of by fraud.
How to Choose The Best Payroll Provider?
When it comes to How to choose the best payroll provider, we have made a list of essential criteria here so you can evaluate the right one for your company.
Determine Your Budget
For many companies, the cost is always one of the biggest deciding factors when choosing a payroll provider. Obviously, business owners always want to spend only what is necessary on payroll processing.
The cost of payroll software varies depending on the features they offer. Software costs also depend on the pricing model you choose, you can choose between paying a fixed monthly rate or paying a fee each time you run payroll.
Have Essential Features
A clear idea of precisely what you are looking for is essential. Picking out the features you feel will be crucial to your company’s payroll process. We have also suggested essential features of payroll software below.
Below are some of the most popular features of payroll software.
- Payroll processing and management
- Direct deposit
- Social and Health Tax
- Other tax-related services
- Compensation administration
- Integrating payroll
Update Software Regular
Compliance with laws and regulations is critical extremely in payroll. Choosing a payroll software that’s always up to date with new laws and features might be great for your business.
Have Dedicated Support
When choosing the best payroll software, the vital thing you should consider is the software needs to be supported by the payroll agent. Browsing their website to see if they have customer support via phone, live chat, or email.
Have Good Ratings
You can get an overview of the provider’s services through their online reviews such as Google Reviews, Glassdoor, Trustpilot, and their website and social media platforms.
How much does payroll software typically cost?
The cost of payroll software depends on several factors, including the size of your business, the number of employees you have, and the features you need. The most basic payroll software designed for startups and SME business typically cost between $50 and $250 per month.
Who is the largest payroll provider in Vietnam?
ERA – Expert Resources Alliance is one of the leading providers of payroll and HR solutions for startups, SMEs, and large enterprises. This payroll provider offers various services, including Contract, Permanent (Direct) Hire, Managed Solutions, and mobility services. Find out more here!
PEO vs. Payroll Service Providers: How are they different?
- PEO stands for Professional Employer Organization. PEO service provider offers payroll administration, compliance support, and HR services while a Payroll service provider (PSP) handles your payroll management without any general legal burden.
- Because PEO payroll services provide more services than a payroll provider, so it’s a lot more expensive.
How do I set up a payroll provider?
Contact us right now, and we will guide you through setting it up.
Hopefully, the article has brought you much essential information. If you are still confused about how to choose and what is a payroll provider, feel free to contact us. Our dedicated consultants are willing to answer all of your questions.
Ms. Tracy has worked in human resource consulting for over 15 years. A driven entrepreneur focused on business expansion and people development. She previously worked as Country Manager for an international Australia firm that specializes in global workforce management, as well as several key roles as Business Growth Director and Executive Search Director for both large local firms to effectively drive their business growth. A strong emphasis is placed on aligning organizational priorities/objectives with business needs. She has a large network of local business leaders and a thorough understanding of the local market.