Which firms should consider outsourcing payroll in HK?
Industries that have high employee mobility, Hong Kong branches of international firms, as well as small and medium enterprises, can benefit from payroll outsourcing. In many cases, branches of foreign firms do not have dedicated resources. This is where payroll outsourcing Hong Kong comes into the picture.
Lack of human resource
Organizations that have less than 50 employees are referred to as SMEs in Hong Kong. There are several companies in HK with less than ten employees, and these are called micro-enterprises. Such firms find it challenging to assign an in-house team for payroll processing. It results in a waste of time and resources as these individuals remain away from core business activities. Put simply, an organization that lacks human resources needs to outsource these tasks for ensuring day-to-day operations are in compliance with govt regulations.
Outsourcing payroll allows organizations to focus more on core business opportunities. The third-party, virtual accounting firm takes care of wages, holiday and leave calculations, and documentation as per the “Employment Ordinance.”
The budget that needs to be assigned for hiring staff for payroll management is considerably higher than the outsourcing cost. Most importantly, payroll services Hong Kong firms have several teams of experts who work for companies from various domains. They have adequate knowledge about laws in Hong Kong.
The software cannot replace human resource
No doubt, payroll management software can make things easy. However, you still require human resources in the form of human professionals to ensure regulations and laws are following. Errors in payroll can result in a massive penalty. Why hurt the company’s bottom line when you can let professionals handle everything at affordable rates?