In emerging markets where laws and regulations are often changing especially in Indonesia, Managing your companyâ€™s payroll internally can be quite a headache. Even the slightest miscalculate in payroll can eventually cost you a lot of money.
Payroll is a non-core activity. It is a time-consuming obligation, yet, its role in companyâ€™s sustainability is crucial.
Some business owners think that it is wiser and more affordable to handle payroll in-house. However, in many cases and in the long term, it is easier and more economical to outsource payroll activities.
7 Reasons Why you should outsource payroll from Moobing rather than traditional payroll outsourcing services?
#1 Save money on monthly operational expenses
Moobing payroll service service is more cost-effective and can reduce your expenses significantly. That is, when you outsource payroll management, you donâ€™t have to spend your money on:
- buying expensive timesheet & Personnel software
- buying software database license
- buying server & operating system license
- hiring or training in-house payroll employees
- keeping the payroll calculation CPF and Tax regulations up-to-date
When evaluated on a per-payroll-period or a monthly basis, a cost analysis may well indicate the benefits of an affordable full-service provider. Traditional outsource providers rarely provide reliable timesheet software to their customers
#2 More time to focus on your core business
No matter how many employees a business has, payroll job is a repetitive work and it requires a lot of time and attention to detail. Pay period follows pay period, each time requiring the business owner or their payroll person to type in large amounts of data and double-check for any keying errors. Therefore, delegating your monthly time-consuming tasks to professionals can be a strategic move, especially for small and growing companies.
Why? Because all that time you will save by outsourcing payroll services can be invested in developing your strategies, growing sales, and expanding your business instead.
American entrepreneur and best-selling author, Gary Keller, said : â€˜You can do two things at once, but you canâ€™t focus effectively on two things at onceâ€™.
Outsourcing a payroll service enables you to focus more on productivity instead of spending your time and nerves on tedious administrative tasks that can easily be outsourced.
#3 Guaranteed compliance with government regulations and up-to-date
Using a professional payroll service also frees you from having to delve into the myriad of local manpower laws that accompany payroll management. It is also important since laws in emerging markets can sometimes change overnight and it is not always possible to keep up with all regulations, deadlines, and tax obligations.
Keep in mind that failure in maintaining compliance can be expensive. The law is the law and being unaware of some regulations or implemented changes does not mean that you are not liable. That is, you are legally responsible for all errors that occur.
However, outsourcing the service guarantees you that your payroll is managed by a team of professionals who have the knowledge of all requirements and who are dedicated to keeping an eye on all recent changes in regulations.
- Overtime regulation from Disnaker
- BPJS kesehatan
- BPJS Ketenagakerjaan
- BPJS Pension
- PPh Pasal 21 Tax Calculation
#4 Keep the salaries confidential
If you handle your payroll in-house, there will always remain a risk that some of the employees could get access to payroll information in the companyâ€™s server or that the payroll staff would reveal the salary information to others.
When outsourcing payroll management, however, your data will be kept in well-secured servers and encrypted. Thus, there is no chance that someone from your company could find out these delicate details. This way you will avoid the potential dramas that may occur in the office.
In short, only HR Manager, Moobing and the employee know their own salaries.
#5 Avoid mistakes and Pay on-time
As already mentioned, mistakes in payroll can be expensive. Not only what concerns compliance with the law, but regarding the well-being of your employees as well. In other words, if you want to keep your employees happy and motivated, ensure timely and correct paychecks.
How to verify that all your calculations and payments are correct when you manage payroll on your own? If you outsource payroll, everything will be handled by professionals and you can be sure that calculations, payments, and reports will be done accurately and on time.
#6 Less Hassle
When you outsource payroll management to a professional service provider, all monthly hassles and worries will be gone. In addition to having the peace of mind that everything related to your payroll will be handled flawlessly and on time, you can be worry-free regarding the following, too:
Your bookkeeper calling in sick, taking a maternity leave, or suddenly leaving the company with all the necessary knowledge and you having to hire or train a new employee.
Embezzlement. Even with the most trusted and long-term employees, there will always remain a risk of fraud.
Fines. Late or incorrect reporting results in penalties. Professional payroll employees are punctual, thus they will handle everything competently, accurately, and in a timely manner.
#7 Free to use Moobing HR System Tools
You are free to use our HR tool that help your HR in daily operational basis such as:
- Employee P-Files Module
- Employee Personal Detail
- Work Accident Claim
- Employee Education Info
- Employee Family Info
- Warning Letter Module
What are you waiting for? Call us now for more detail