Payroll covers all aspects of paying a company’s employees. This includes making sure that salaries are paid in the correct amount and on time, that income tax is withheld, and that social security contributions are made. Underpaying a valued team member by accident can impact staff retention. Paying salary to an employee that has already left is equally problematic, though for different reasons. One would be surprised to learn how often these issues occur, or more shockingly, how often employees are involved in defrauding these funds.
With a region as fast-paced and dynamic as emerging Asia, regulations affecting payroll change quickly. If one does not closely follow these developments, it’s easy to miss an update and suddenly
fall out of compliance. In this way, a minor oversight can have major ramifications. Depending on the jurisdiction, strict fines may be imposed for incorrect or late payments of individual income tax withholdings, or social security contributions.
At the same time, payroll is a tedious task that can distract from the organization’s main purpose. Especially when a company is quickly expanding its operations across different countries, it may not be the best use of time to have the local manager personally handle payroll transactions.
In this Thought Leadership Report:
- Labor Costs Across Asia
- Development of a Foreign Company’s Asian Operations
- Outsourcing Payroll and HR Management: Q&A with Adam Livermore
Originally published by Dezan Shira & Associates, a fellow LEA Global member.