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No more mistake for Personal Income Tax by using Payroll Service outsourcing.
Labour Legal

No more mistake for Personal Income Tax by using Payroll Service outsourcing.

05/11/2019

Soon all those specializing in workers of accounting salary meticulous and most experienced also found that payroll is a job very headache, just missed a few details that led to a series of consequences, Wrongly about the amount of personal income tax payment, the amount of underpaid, overpaid for employees and above all, the deduction of payment of social insurance, health insurance and other lawful amounts is incorrect, leading to the arrears and investigation control data of the parties wasting unnecessary time and resources.

For many foreign investment enterprise, Vietsourcing HR's payroll service is truly an optimal and valuable replacement service for internal corporate governance. Vietsourcing HR will support accurate salary calculation, in a simple and effective manner, support tax payment and perform a variety of other accounting operations to the authorities, in an active and right manner. term, does not affect business customers in terms of people.

According to a survey of HR consultants Vietsourcing HR, most companies usually handle payroll and personal income tax calculations for one or all of the following reasons:

  • Management believes that internal handling is more effective than outsourcing;        
  • The company wants to keep salary information confidential;        
  • The company wants to maintain control over payroll data so it can handle last-minute data changes;        

In fact, if smaller companies have a stable, well-paid, and low-turnover staff, it is better to do this by yourself than outsourcing, but when dealing with Personal income tax issues for foreign experts will be ineffective because internal staff are not as knowledgeable about procedures and legal issues as consulting units for salary management services and personal income tax multiply. And finally, when recalculating business costs, opportunity costs, and process management time, the cost is not as cheap as companies often think.

In addition, without proper knowledge of the payroll process and the implementation of a proper salary & welfare management process, internal personnel will be very likely to make mistakes. Local tax authorities, as well as social insurance agencies and trade unions, only care about the full, due payment and due process, and the late payment is the reason that businesses incur a penalty of late payment interest from these agencies.

Choosing to outsource a payroll service (Payroll Management Service) will be able to calm the mind of the HR department at each pay period, according to a survey of Vietsourcing HR in 2 major cities (Hanoi & Ho Chi Minh City), 1 in 5 companies often mistakenly pay wages to employees and also according to the Hanoi social insurance agency, every 3 enterprises participating in social insurance Another company often made incorrect calculations of the amount of deduction and it took time to check the figures of the quarters.

When choosing Vietsourcing HR to provide salary management consulting services, we will help your business minimize error calculations, save time working with the authorities, we will simplify. payroll and have specific and clear reports coming to your business every pay period.

For businesses with a large number of employees entering and leaving, and groups of employees working at different hours, or with a group of salespeople with significantly different turnover rates, use of the service Vietsourcing HR's payroll will be a significant alternative to saving time and internal processing costs. It is especially helpful if your business is from a foreign country and is not familiar with the regimes and policies on personal income tax, social insurance, health insurance and unemployment insurance. Vietsourcing HR with 12 years of experience, knowledge of the Personal Income Tax law, extensive experience working with local agencies and authorities will reduce the time to perform these operations and help for customers to always comply with the law on time.

During the service process, Vietsouricng HR found that the salaries of customers, especially foreign-invested enterprises, when paying salaries for foreign experts working in Vietnam, Frequently encountering the following problems when calculating personal income tax calculation amounts:

  1. Calculation of housing rental allowances for experts:This is the amount charged to the taxable income paid by the employee, but does not exceed 15% of the total taxable income, and this amount does NOT include rent. houses paid by a company to professionals. This is the most confusing item when calculating personal income tax (PIT) for foreign experts working in Vietnam.
  2. Allowances for membership cards(Fitness, beauty care, health care ...), when calculating these amounts, the enterprise's accountant is often confused with the employee's accounting in the income. (If the card is named in the name of that employee), and is included in the taxable income of the Worker. And if the card is in the name of the collective, or in the name of the company, it will be accounted into the expenses of the business, not related to the taxable income of the Worker.
  3. Lunch and shift allowances for employees: According to Circular 26/2016 / TT-BLDTBXH, shift allowances for employees will not be included in the taxable income of employees provided this amount is Not to exceed VND 730,000 / month / person. And many businesses did not pay attention to this detail when calculating salaries for the company's personnel, leading to wasting an unnecessary tax expense.
  4. Declaring missing taxable income: For example, the main income, the income from accommodation allowances, travel, benefits, bonuses, optional insurance ... specifically as some businesses do not count 15% of taxable income of The amount of housing allowances that the company is paying to employees are mostly foreign experts, excluding overtime wages (The portion exceeding the normal working salary will be exempt from tax)
  5. No deduction at source of payments to subjects subject to taxable income: For example, the income from 2,000,000 VND or more, 10% (Withhold) must be deducted before payment to the employee.
  6. Do not require individuals to make family circumstance-based reduction registrations or provide duplicate family circumstance-based reduction registration dossiers or make incorrect or overlapping declarations 1 time)

In addition to providing salary management, payroll, salary calculation, personal income tax declaration and finalization services, Vietsourcing HR also advises clients on how to properly and appropriately allocate expenses. on income of Workers. Vietsourcing HR has offices in both Hanoi and Ho Chi Minh City, with well-trained and knowledgeable staff of tax laws, labor laws, and experience working with tax authorities. and Social Insurance.

 

Learn more about how we can help your company Tax management?  Click here To Schedule A Consultation!

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