Hong Kong is a business paradise and a global financial hub that investors, entrepreneurs, and managers can look to for the rapid growth of their enterprises. It is one of the emerging and rapidly growing markets in the Asia-Pacific (APAC) region. Companies operating in Hong Kong enjoy many benefits, including a liberal economy, supportive government, and an educated & English-speaking workforce. All about Payroll Service in Hong Kong.
Despite the long list of benefits and strategic location of Hong Kong, its payroll regulations and policies, as outlined in the Employment Ordinance, can make hiring staff and compensating them challenging.
Although payroll management for Hong Kong companies is not as complex as that of China, most companies find it very tough. However, we have a solution for it: working with the best payroll service in Hong Kong. This guide is a deeper look at payroll management to help you identify the signs that show it is time to outsource and the associated benefits. Why risk handling the payroll with an in-house team when experts are only a click away?
A Brief about Payroll Management
Payroll management is an administrative function of compensating staff for services rendered to your company. However, it involves way more than simply sending the monies to their bank accounts. It is a complex task guided by Hong Kong’s Employment Ordinance, which defines the basic pay and statutory deductions that employers have to make.
The process starts with a review of each employee’s employment details as specified in the contract or employment details. Then, the salary is calculated based on the worked hours, factoring in all additions, such as bonuses and overtime charges. This requires a lot of verification and data reconciliation to ensure that only the correct amount is paid to staff.
The employer must also make statutory deductions, such as the Mandatory Provident Fund (MPF), and remit it to the government in line with Hong Kong’s laws and policies.
Finally, a report is produced capturing all the details for the management of your company to use different executive functions. Well, this is usually too much for many companies and it is a good idea to outsource the payroll service from experts.
Special Benefits of Using Payroll Service in Hong Kong
Check out the following benefits that your company should anticipate for outsourcing the payroll service in Hong Kong.
Managing payroll is not an easy task because it involves a lot of work that requires expertise. Your payroll department has to check minutes and reports of details such as new hires, garnishments, benefit deductions, and terminations, to mention a few. New regulations or policies only make matters more complex. If you opt to use an in-house team, it can take a lot of time, which could have gone towards other more productive works.
Outsourcing payroll service in Hong Kong helps to unburden you from the concern of the complex task that demands 100% precision. It also means that your accounting department’s staff will be freed to focus on other areas for growing the company’s revenue.
- Avoid Penalties for Incorrect Payroll
Every year, a significant number of companies in Hong Kong end-up getting penalised for incorrect or inaccurate payroll. Note that when your company is flagged off for incorrect payroll, this could make it challenging for other things, such as renewing your company licence and getting a tax resident certificate.
When you bring on board a professional service in Hong Kong, it gives your company the assurance of getting every aspect of the payroll correct. They come with qualified and experienced professionals who specialise in matters of payroll management. Therefore, they are up-to-date with the latest policies and no matter how close the deadline to handle payroll is, payroll processing is completed accurately to avoid penalties.
- Helps to Keep the Cost Low
Your business can save some precious Hong Kong dollars by working with the best payroll service in Hong Kong. If you have an in-house payroll team, it means you must pay them salaries and meet the costs for all extras like overtime payments. When compared to the charges that your company will incur for outsourcing the payroll service, the latter will be way lower. For example, you will not have to pay the salaries of the experts, buy or maintain the payroll software because the contracted firm takes care of them all.
- Enhanced Security
The process of payroll is tough because it requires progressive monitoring and involves a lot of risks. One of the most notable risks is theft of personal information. Although your staff might be trustworthy, insider threats and malware attacks still loom.
Therefore, you still have to install an extensive system of monitoring and securing personal information, which does not come cheap.
However, working with a good payroll service in Hong Kong makes it pretty easy to enjoy top-notch security. The experts come with advanced systems for protecting your information from most threats. For example, the data is stored in secured servers, and only vetted and authorised personnel get access. Also, multiple backups are used and their payroll programs are always up-to-date. Simply put: experts have the best systems to keep your payroll-related information as secure as possible.
These are only a few of the benefits that you should anticipate from using the best payroll service in Hong Kong. The list can be way longer, including getting the support of experts in your HR strategies and a reduced risk of losing in-house payroll staff.
Payroll Service in Hong Kong
Now that we have listed the benefits that come from outsourcing payroll service in Hong Kong, it is time for you to make the big decision on when to go for it. The following are some signs that it is time to contact an agency of experts for payroll management:
- Your in-house team is taking too much time with payroll processing.
- Your company is looking for ways to keep the cost of executive functions low.
- The staff in your company lack expertise on matters of payroll and accounting management.
- New laws or policies have been passed, and your company is unsure of how to implement them in your HR and payroll management systems.
- When working on scaling up company operations both in Hong Kong and other jurisdictions.
This post has demonstrated that there are so many benefits that you can enjoy from outsourcing payroll services. Remember that this has to be the best payroll service in Hong Kong for you to enjoy all the advantages.
Primasia has stood out for outstanding services in different executive functions, especially payroll management, and no matter what your payroll needs are, our experts are ready to help. Contact us now for the best services and to discover our offer for your company.