The article discusses an overview of offshore payroll services.
Offshoring: An Overview of Offshore Payroll Services
Payroll Processing is one Finance & Accounting function of businesses wherein a Payroll Specialist or a team of specialists manage payroll transactions and establish effective payroll procedure and transactions for a company.
According to the Deloitte Global Payroll Benchmarking Survey, 73% of organizations outsource some aspect of payroll. By Industry, 89% of Financial firms outsource payroll, 84% of Energy and resources firms outsource payroll, 83% of Technology, media, and telecommunications firms outsource the function, for Consumer and industrial products firms we have 79%, for professional services we have 65%, for the field of life sciences and health care we have 64% and the public sectors at 32%.
Why Work with an Offshore Payroll Service Provider?
Offshore Payroll Service Providers process and manage the client’s company payroll. These providers handle both the technical and customer service aspects of payroll administration such as the processing of taxes and payment of employee benefits, tracking of hourly rates of employees, computing wages, compensation benefit rates, administering payments, and more.
Businesses can save on costs when working with an offshore payroll service provider. Offshore Payroll Service Providers allow access to talent with budget-friendly hiring costs and associated minimum wage, not to mention costs relating to recruiting, management, facilities, and standing IT Support. Depending on the experience of the offshore talent and the provider, there is a 60% estimated reduction in the client’s average cost.
Payroll processing is labor-intensive and time consuming. By offshoring payroll services, businesses can focus on high-value functions such as aspects relating to decision-making or business growth.
43% of companies consider payroll accuracy as a reason to outsource payroll. – Deloitte
Offshore Payroll Service Providers also have both administrative and technical expertise. Offshore Payroll Service Providers process accurate and efficient payroll reports.
The functions of an Offshore Payroll Specialist include auditing payroll process, staying up-to-date on exemptions and salary changes, tax deduction, bonuses, expense reimbursements, and following guidelines for all procedures around employee compensation. Offshore personnel can prepare reporting on compensation activities and forecasts, set up and maintain functional payroll systems, collaborate with Finance and HR to create payroll reports and forecasts, and ensure compliance with all payroll and tax laws.
The goal in Payroll Processing is to ensure the personnel receives the correct compensation in a timely manner. Offshore Payroll Service Providers provide timely processing that is fully compliant with international tax laws. Businesses can avoid tax violations and penalties in late tax filing by offshoring payroll.
According to Deloitte, 43% of companies consider payroll accuracy as a reason to outsource payroll.
Now businesses can also reduce errors associated with manual entry / loading payroll inputs and entering manual adjustments.
When it comes to technical expertise, offshore payroll providers are capable of integrating current operating systems or software.
A payroll specialist is able to use payroll software with accuracy and efficiency. They are good with numbers and can be trusted with confidential data. They also have great communication and comprehension skills.
Assigning the Payroll function is now easier since offshore staff can process and calculate the correct amount incorporating overtime, deductions, bonuses, etc. with the assistance of a computer system or software. Offshore Payroll Specialists also prepare and execute pay orders or distribute paychecks through an electronic system.
Commonly used software relating to Payroll Processing are:
- Sprout
- Gusto
- QuickBooks Payroll
- OnPay
- RUN Powered by ADP
Offshore Payroll Service Providers can apply automation technologies to automate key accounting and financial business processes such as centralized data syncing and reports generation if required to improve processes.
Connext Global Solutions helps businesses solve the staffing challenges and enable client growth with their innovative remote staffing and process outsourcing solutions. Connext powers small and medium enterprises by helping build, train, and manage excellent, highly functioning remote teams.
At Connext Global Solutions we allow clients to start with as little as 1 full-time employee and scale as they see fit. Connext actively sources top talent required by the client. Aside from Payroll Processing functions, businesses looking to offshore Finance and Accounting functions can tap from our talent pool of:
Bookkeepers: Offshore Accountants can also provide data entry services such as efficient recording of financial transactions, payroll management, invoice and billing management, processing of incoming payments along with the issuing of necessary paperwork, payment posting, and managing and reconciling balance sheets and financial statements.
Accounting Associates: Accounting Associates ensure completion of Service and Compliance Tasks such as Accounts Payable Invoice and Accounts Receivable Billings, Bank Reconciliations, monthly and annual GET filing, payroll tax filing, weekly payroll and cash forecast and more.
Junior Accountants: Junior Accountants provide back-office support such as updating lists of requested information and supporting documents, update the Accountant Scorecard and deliverables status, prepare financial statements, reconcile Accounts Receivable & Retainage Receivable and other Balance Sheet Accounts Reconciliation, and more.
Senior Accountants: Senior Accountants oversee the finance department and provide assistance with external and internal audit examinations. They manage and supervise Junior Accountants in creating detailed financial reports and analyzing forecasts.
Controllers: Controllers verify bank reconciliation ties with the General Ledger. Their tasks also include reconciling Accounts Receivable & Retainage Receivable, and other Receivables. They also reconcile Prepaid Accounts, Deposits, Inventory, Fixed Assets, and Investment. Aside from this they also reconcile Accounts Payable & Retainage Payable, and Credit Card Payable, and other assigned related roles.
Connext Global Solutions provides excellent offshore staffing solutions that add value and unlock client growth.
Start building a scalable support team of Finance and Accounting experts. Learn more about Connext Global Solutions today.
Discover how offshoring accounts payable complements offshore payroll services in our informative blog post. Learn about the synergies and efficiencies of offshoring these critical financial functions.
Reference:
Deloitte Global Payroll Benchmarking Survey Sponsored by APA and GPMI
