Payroll outsourcing solutions in Vietnam

Reasons for outsourcing your payroll in Vietnam?

Vietnam’s remarkable transformation in recent years, marked by market opening and policies aimed at attracting and facilitating foreign direct investment, has led to a surge in new businesses and offshore companies expanding their offshore business in Vietnam. To keep pace with this growth, many companies require outsourcing solutions for various processes, with payroll outsourcing being one of the most commonly outsourced functions in Vietnam. Managing payroll in Vietnam can be more complex than expected due to intricate labor regulations, employment practices, and cultural nuances.

In 2018, legislative changes introduced mandatory social insurance payments and payroll requirements for foreign workers, underscoring the importance of understanding and complying with relevant regulations.

Benefits of using payroll outsourcing in Vietnam

Business compliance guaranteed

Foreign corporations established offshore in Vietnam often struggle to comprehend Vietnam’s labor and payroll regulations, as well as the complexities of accounting, auditing, and tax reporting. Adding to the challenge, Vietnamese laws undergo frequent changes due to the rapid growth of the labor market and the overall economy.

Calculating payroll in Vietnam is intricate and subject to variations based on regional categorizations, minimum wage levels, and overtime compensation. For instance, the national and regional minimum wage distinctions directly impact the mandatory contributions made by both companies and employees to state insurance schemes, consequently influencing the monthly Personal Income Tax (PIT) remittances to the government.

It’s important to note that as an employer, you carry legal responsibility for the accuracy of your payroll and tax filings. Even a single error can expose your company to significant risks and costly penalties. Given the ever-evolving regulatory landscape, having access to legal experts well-versed in tax law is essential.

At Iris International, we have a dedicated team of payroll specialists capable of ensuring precise and compliant calculations for salaries, social security contributions, healthcare payments, overtime compensation, and PIT.

Minimize legal risks

Iris International provides a valuable service for offshore businesses incorporated in Vietnam that require workforce solutions in Vietnam with or without physical presence in Vietnam. Through our services, Iris International takes on the role of the employer on behalf of our clients, effectively managing their obligations to both their employees and the government.

This arrangement, known as the Employer of Record (EOR) solution, serves as an exceptional HR outsourcing option in Vietnam. It helps businesses mitigate the substantial risks associated with potential labor law violations.

Even companies with existing subsidiaries in Vietnam can explore the advantages of this service if they wish to alleviate the responsibilities related to hiring and executing labor contracts.

Cost saving

Opting for an outsourced payroll service offers a cost-effective alternative to hiring a full-time employee to manage this responsibility. Hiring a new team member can add financial and operational burdens that might not align with your overall business strategy.

Conversely, our Employer of Record (EOR) services are designed to help offshore companies address hiring challenges without the necessity of establishing a legal entity in Vietnam, a process that incurs substantial expenses. In comparison, the cost of payroll outsourcing is relatively insignificant. This approach allows you to focus your resources where they matter most without spending unnecessary costs.

Organized and processional payroll processing

Outsourcing your payroll functions offers a streamlined solution that includes detailed payroll reports, enhancing your ability to efficiently manage your payroll.

Iris International, recognized as a trusted payroll outsourcing specialist, is equipped to handle your company’s payroll processing and accommodate any necessary adjustments. You will gain access to your payroll data in a user-friendly and concise format, simplifying the management of this crucial aspect of your business operations.

Prioritize your business focuses and resources

Outsourcing the time-consuming payroll functions can liberate your attention to concentrate on your fundamental strengths, fostering strategic business expansion. With numerous tasks to handle, juggling them all can be distracting and hinder your ability to effectively implement essential strategies.

Therefore, rather than attempting to tackle everything on your own, it is advisable to channel your resources into areas where you excel. By dedicating your resources, expertise, and insight to bolstering your business’s core activities, you will witness the growth and success of your company.

How Iris International payroll outsourcing work

Our payroll system is cloud-based, providing convenient online access. We securely store all employee data, including personal information, contracts, and salary details, in this online platform. Additionally, our system streamlines the management of employee attendance and absences.

Each month, we initiate the payroll calculation process based on the specified cut-off date. We then present the payroll table for your approval before transferring it to the accounting team for payment processing. Rest assured, we ensure that all relevant reports are submitted promptly. You can also conduct periodic checks or inspections whenever necessary for added peace of mind.

Outsource your payroll to Iris International

Iris International is a highly experienced payroll outsourcing provider staffed with HR and payroll specialists who possess in-depth expertise in payroll processing. Our specialization extends to managing the intricacies of payroll taxes and ensuring strict compliance with government regulations.

Get in touch with us today to explore how we can provide the right solution to meet your payroll needs.