Roles in outsourced payroll team
Salary is one of the most expected things for people working, it is the source of income to take care of themselves and their families, salary is also the goal for them to assert their position in society. In modern society, we cannot live if there is no coins in the pocket, and it will be extremely uncomfortable if we do not have enough money to serve ourselves. Payroll is what almost determines the salary of the person working. In this article, let us explore more about roles in outsourced payroll team
1. What is Payroll?
Payroll means payroll in Vietnamese, and also means payroll book, total payroll fund… Depending on the context, Payroll is understood in a specific sense.
Payroll is the most common meaning of payroll. A payroll usually contains complete information:
- List of employees
- The corresponding salary of each employee and other income such as basic salary, position salary, performance bonus, sales bonus, allowances, subsidies…
- Deductions such as Social Insurance (SI), personal income tax (PIT), fines or other deductions
- Looking at the payroll, the manager will know the total salary to be paid during the period for each employee and all employees at the organization/enterprise.
2. Roles in outsourced payroll team
The basic structure of the HR department includes: Recruitment; Compensation and benefits (C&B); Administration department (Admin); Training department; Organization Development department; Talent management department; Corporate culture building department.
Roles in outsourced payroll team include:
- Payroll Executive: Payroll calculation employee. The function of this position is to create timesheets and monthly payroll for employees.
- Payroll Specialist: Timekeeping specialist, Understands and implements the company’s salary regulation system process.
- Payroll Supervisor: Monitor work, manage attendance, compare company performance
- C&B Specialist: Develop and implement compensation policies, establish budget forecasts for the company
- C&B Management: Develop and set compensation and benefits targets
- Payroll outsourcing manager: Plan strategies and long-term vision for compensation and benefits systems in 3-6 years.
What is payroll coordinator outsourcing?
3. Functions of Payroll
- Help businesses effectively control their employees and expenses related to personnel in general.
- Optimize the efficiency of human resource use, promote the performance of employees in parallel with creating motivation by attractive income policy
- Ensuring the payment of salary compliance with the policies and provisions of the Labor Law & related decrees on regional minimum wage, deductions, deducted from salaries such as social insurance, PIT, salaries for each position, job title, field/special industry …
4. Basis for building Payroll and completing the periodic payroll
4.1 Salary regulations
Salary regulations are documents that define issues related to salaries, bonuses and payments to employees, avoiding labor disputes in organizations/enterprises.
Salary regulations usually include the following contents: regulations on types of salary titles, productivity salaries, sales bonuses, labor groups, principles of distribution & use of salary funds, sources of salary fund formation, regulations on salary and bonus regimes for job levels/positions, salary calculation formulas, social insurance regimes, health insurance, salary payment regulations & regulations on salary increase/adjustment for job titles, ranks, etc.
4.2 Regional minimum wages
Regional minimum wages are an important basis for building salary scales and tables in enterprises. In particular, from January 1, 2021, the regional minimum wage is stipulated in Decree 90/2019/ND-CP specifically.
4.3 Average salary in the market
Most enterprises offer actual salaries to employees higher than the regional minimum wage. The basis for the actual salary to negotiate with employees is often based on their capacity, experience and the average salary of that position in the market.
Essential Functions of Outsourced Payroll Operations
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4.4 Regulations on salary deductions
Including Social Insurance, Health Insurance, Unemployment Insurance, Trade Union Fund. In which, the total amount (Insurance + Trade Union) deducted from the enterprise’s expenses is 23.5%, deducted from the employee’s salary is 10.5%.
In addition, the company also has policies on salary, allowances, and subsidies according to each job position, special industry/field group as prescribed in the Labor Code and other related Decrees.
4.5 Timesheet is the basis for calculating monthly payroll
To calculate the total salary to be paid each month, also known as total payroll, HR needs to base on the actual work summary table. The timesheet shows the actual number of hours worked by each employee, the number of days off, and business trips, from which the income that employees receive during the period is calculated.
5. Common problems when calculating payroll
Although there are many payroll templates that businesses can search and collect, not all salary scales are suitable for your business. In particular, in the process of calculating salaries, building salary scales and policies related to Payroll, outsourced payroll specialist are very likely to encounter errors.
Incorrect salary calculation for employees due to the total work not matching the actual, or missing income such as KPI bonuses, sales bonuses, allowances, incorrect calculation of personal income tax, etc.
No clear salary regulations, no transparency of salaries with employees. Leading to employee dissatisfaction, reduced commitment and effort in work
With the above common problems, businesses need to spend time and invest resources to establish appropriate salary and bonus policies, and at the same time use payroll coordinator outsourcing solutions so that salary issues are implemented effectively. Thereby motivating employees to work at full efficiency, be creative and proactive in their work commensurate with the level of treatment they receive.
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