The Philippines is one of the most widely regarded countries in the world to start a company in. The company has some of the most beautiful places to look for, and people over there are one of the most talented and hard-working. Moreover, the Philippines is now becoming a global hub for outsourcing company services and is growing fast in terms of other business activities too. As there are so many corporations in the Philippines starting up, it is necessary for companies to hire a payroll service, to manage the employee’s salary and much more. If you are looking to outsource your company’s payroll service in the Philippines, after you have setup a company in the Philippines, then this article is for you.
Growth of Business in the Philippines
The past couple of years have seen an increase of close to 5.6% in terms of GDP growth, which currently stands at a rate of 321 Billion USD. Moreover, the country is the world’s 34th largest economy, in terms of GDP, and is the 3rd largest economy in the ASEAN region, after Indonesia and Thailand. From being a country that solely depended upon agriculture to boost its economy, the country has transitioned, to ensure that they depend less on agriculture and more on service. The government has a huge role in this, by reducing taxes and implementing newer schemes, to attract a lot of MNC’s to establish foreign branches, and outsource some of the work to corporations in the Philippines. For all of this, you need employees and to manage them, you need to have a payroll service. Here is why you need to understand why payroll services are important for a company.
Why is Payroll Service important?
Before all of this, let us understand what payroll service is. Payroll service is a company that supervises the payroll process of an employee in a company, that includes the employee’s salaries, bonuses, taxes and much more. This part of the company is the most crucial, as maintaining a good payroll will benefit in increasing the morale of the employee, as well as benefit the company by not providing faulty tax statements. In the Philippines, the government mandates to provide a detailed report about the payroll system of the company, by the SSS (Social Security System).
Reasons to Outsource Payroll Services in the Philippines
Most of the time, what happens is that a company cannot devote enough time to manage the payslip of the employees, and create errors. This reduces the morale of the employee and will not work properly. To avoid this, most of the corporations in the Philippines outsource Payroll services. Here are some of the reasons why you should consider outsourcing payroll services in the Philippines.
1.Reduced Overhead costs
By outsourcing the payroll process, you can save some time and overhead costs instead of hiring people to do non-income generating tasks.
2.Accurate Calculation of Wages and Taxes
The most complex procedure in a payroll service is to calculate the average income of the employee, and the tax amount he is payable to the government. By appointing a payroll service provider, it will help in minimizing human errors.
3.Provide Deeper Insights and Security
An experienced payroll service provider knows more about the regulations mandated by the government. By outsourcing payroll services, this would provide deeper insights into following the regulations and rules, because let’s be honest, who has the time to do it other than the firms! Furthermore, the Payroll service company has its own methods to secure the data to prevent any privacy breach and payment manipulations.
4.Reliability and Accountability Factor
Outsourcing Payroll services are reliable, as their in-depth technical knowledge will return fewer mistakes, no delays and finally, no burden.
5.Reduces Complexity and Increases Productivity
Maintaining an in-house payroll operations department will add more stress to the employee, as it a boring, complex and repetitive task that will cause turnovers within the company. Outsourcing will reduce the complex process, as they are well versed with doing such complex tasks.
Last but not least, a secure and hassle-free service, rest assured, the firms are there to take care of your payroll services.
Hence, these are the reasons why you need to outsource Payroll Services in the Philippines. We at Business Setup Worldwide, do provide our customers with the best Payroll Services in the Philippines. Our team of consultants do help you in managing employees’ wages and help in filing employee’s income tax in the Philippines and much more. Contact us for more information about payroll services. We are here to help you out!
What are the benefits of payroll services?
No more stressing over due dates.
Hire a trustworthy support staff.
Lower overhead expenses.
What is the withholding tax rate for employees in the Philippines?
20% to 35% based on the individual income tax rate.
What is the worth of the outsourcing industry in the Philippines?
AU $38.7 billion.
What is the growth rate of the outsourcing industry in 2022?
6% in 2022.
What is the employment rate in the outsourcing industry in the Philippines?
1.2 million people.