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How to manage the payroll agenda? In-house or with help from an outsourcing provider?

13 Jun 2023

As a result of very demanding legal requirements and frequent changes in the legislation, which are also unusually quickly implemented, payroll become a demanding agenda. Not every company has the resources to handle payroll internally. Which areas are good to leave to companies providing payroll services and which can be handled in-house thanks to consulting services?

payroll-outsourcing-tulip-blog

In addition to payroll processing, outsourcing companies usually provide support in the area of ​​HR for other processes: management of personal files, preparation of a contractual agenda for labor relations, and personnel consulting. Such companies will monitor changes in legislation for you, maintain payroll software, process payroll, distribute payslips, provide payroll services and support to your employees, and tailor-made reports to your HR management. It goes without saying that the highest standards for the protection of sensitive personal and company data are met.

 

The outsourcing company is also responsible for the continuity of services and for the fact that your obligations towards employees or statutory bodies will be fulfilled on time and in accordance with legislation.

Payroll outsourcing usually includes:

  • Monthly payroll processing (exchange of payroll documents, calculation of wages and taxes, calculation of deductions from wages, archiving of the payroll, calculation of taxes, calculation of net wages and out-of-cycle payments)
  • Payroll reports (all statutory reports for institutions, statistical reports for the Statistical Office, annual tax settlement, and various other reports according to your needs)
  • Processing of the personnel agenda (registration of new employees in Social Security, registration of departing employees, pension insurance registration form, receipts for taxable wages, crediting of years, issuance of receipts to employees for various purposes)
  • Processing rewards and bonuses (health or life insurance, pension plans, vacation, sick leave, and maternity leave)
  • Representation in communication with authorities (representation in communication with various institutions, also in the case of tax control or control from the Labor Inspectorate)
  • Various other services such as distribution of payslips, tax and labor law consultancy (preparation of contractual documentation, consultancy in the field of GDPR, employment of expats, taxation of non-monetary income, mass layoffs, development of company guidelines, and much more) are a bonus of payroll service done by an outsourcing company.

Will payroll and tax consulting be enough for you?

If you already have an established company with a full-fledged payroll department, there is no reason to worry about low-quality payroll processing. However, it can be difficult for this department to keep track of changes in legislation and incorporate everything in time. Therefore, if you receive a response directly from the department that they are not enough for these services, it is better to help them with external consulting from companies that specialize in this (often they are the same ones that also provide outsourcing) or to ensure that payroll outsourcing does not happen a serious error that will cause problems during inspections by the Labor Inspectorate. This can get you really high fines.

TULIP Solutions does not provide payroll services, but we are part of Accace Group, which united more than 800 experts and processes more than 200 000 payslips monthly, while the customers are mostly mid-size and international Fortune 500 companies from various sectors. Accace processes are audited for business continuity, top-level security, quality, and environmental management according to global ISO and ISAE standards.

If you need to cover payroll, we will be happy to arrange a meeting and quote for these services.

Ask for a payroll video session

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Soňa VýhonskáMarketing Manager

Email: sona.vyhonska@tulipize.com

Phone: +421 917 882 324

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Online portal for HR management | Attendance management | Business trip management | Company benefit management | Company event management | Secure pay slip distribution via TULIP | E-Book: Employee benefits after Covid-19

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