Payroll outsourcing includes preparation and submission of the reports to the special social insurance funds and tax institutions. It also includes preparation of the payroll calculation and payment of taxes connected with this. The payroll outsourcing allows to continue work of the company in a way, which is required by the management. Payroll calculation is an important function for every company. Specific feature of this function is to correctly and timely pay salary to the personnel, adhering to legal requirements.
Our organization is ready to provide the payroll outsourcing services, so that the client does not need to run payroll calculations, pay taxes and other obligatory duties to the special funds (e.g. Pension Fund). All the above mentioned tasks take quite a lot of time and require attention to detail. The services relating to the payroll calculation, provided by our company, will help the clients to focus on development of their business, without being distracted by the secondary but important things.
Taking into account complexity of the Ukrainian legislation and regulation of the labor relations, the owners of the companies need to hire professional accountants and staff administration advisors in order to ensure payroll calculation.
But if for small companies such personnel, dealing with the calculation of the payroll, is quite acceptable, for majority of big companies, employing thousands of people, such approach means a heavy financial burden.
That is why the more efficient alternative is to transfer this function to the external provider — the company which professionally provides such services to many companies at the same time.
Main advantages of the payroll outsourcing include bigger volume of the processed information, accumulated experience, constant tracking of legislative changes and high quality equipment, which results in reduced expenditures of the company, relating to calculation of the payroll.
Payroll outsourcing services are provided not only to the big companies, but also to most of the foreign companies, operating on the territory of Ukraine. For such companies outsourcing is not only financially efficient, but also more reliable in terms of accounting, calculation and submission of the reports.
Organization of the payroll calculation: The main work principles
The payroll outsourcing services, provided by our company, completely comply with the client’s policy.
Consulting company EBS specializes in payroll outsourcing services and offers to the clients the whole list of functions in the framework of this direction, including:
- Monthly payroll calculation;
- Urgent calculation of the payroll and unused vacation of the dismissed employee;
- Sick leave calculation;
- Calculation of holidays and other days, when the employees were absent;
- Bonus accrual on the basis of the information, received from the client;
- Calculation of the income tax;
- Calculation of individual contributions to the Pension Fund, Social Insurance Fund and Employment Fund;
- Calculation of the employer’s contributions to the Pension Fund, Social Insurance Fund, Employment Fund and Occupational Injury Insurance Fund;
- Calculation of additional benefits for the employees (lunch, dwelling, compensation of car expenses etc.);
- Preparation of documents for payment of the salary and corresponding taxes and contributions to the funds;
- Preparation of documents for payment of the advance on salary if requested;
- Preparation and submission of the monthly report to the Pension Fund;
- Preparation and submission of the quarterly reports to the Social Insurance Fund, Employment Fund, Occupational Injury Insurance Fund, reports on tax calculation of income, accrued for the tax payers and amount of the deducted tax.
- Preparation and submission of the annual reports to the Social Insurance Fund, Employment Fund, Occupational Injury Insurance Fund, reports on tax calculation of income, accrued for the tax payers and amount of the deducted tax.
- Preparation of the summary tables, containing the information, needed by the chief accountant;
- Preparation and submission of any internal managerial reports, required in connection with the salary.
APPROACH TO THE PROVISION OF SERVICES
The services are provided by Kyiv office of the consulting company EBS for the companies, located on the territory of Ukraine;
- All data needed for payroll calculation is provided to the EBS professionals by the client in electronic form;
- EBS is responsible for correct and timely calculation of the payroll on the basis of the information, received from the client.
- The client is responsible for timely provision of the information to the EBS professionals, and for its completeness and quality;
- In order to calculate payroll and create corresponding reports, stipulated by the Articles of Association, we use 1C system; Accounting;
- Accounting systems can be adapted taking into account specific requirements of the clients and at their expense;
- Different software can be used at the clients’ request and at their expense;
EBS assigns a responsible accountant for provision of the above mentioned services, who is also a main contact person for the client in EBS. The responsible accountant is controlled and supervised by the chief accountant, who is the second contact person for the client.
In order to ensure high quality of the services, we introduce corresponding quality control procedures. The reports are regularly checked by the internal EBS auditors.
One accountant can run payroll calculations maximum for 800 persons or 5 clients. Date, when the salary is paid, is approved separately with each client in order to make work more convenient for EBS accountants.
ADVANTAGES FOR THE CLIENTS
- Confidentiality of information, resolution of issues relating to internal privacy;
- Performance quality;
- Ability to focus on more important primary activities;
- Reliability and correctness of any tax calculations;
- Responsibility of the outsourcing company (including professional liability insurance).
Payroll outsourcing is considered to be one of the most profitable services. Depending on the client’s needs, EBS is ready to offer different services in addition to the payroll calculation.
Payroll outsourcing: Cost of the service
Payroll outsourcing is a service, which will enable tyou o save a lot of time and efforts, transferring routine obligations to our company. Payroll outsourcing, cost of which depends on the list of services, required by the client, will help to focus on main stages of business development. We guarantee timely performance of works and professional team, and we bear responsibility for each processed document.