How to Outsource Payroll

Key aspects of payroll outsourcing

Timely and correctly paid salaries are one of the main factors that can motivate your employees to work productively. Therefore, effective setup of payroll processes will provide a competitive advantage and stability to your business.
We can divide the process of payroll calculation and payment into two main components:

1. Fulfilling agreements with employees regarding payment amounts.
2. Legislative compliance in payroll calculation and payment processes.

In this article, we will focus specifically on legislative compliance and why it is important for your company.

In the processes of payroll calculation and payment, a multitude of operational and specific issues arise, each requiring thorough study and elaboration. This means your payroll specialist must be aware of the latest legislative changes. Sometimes, to find an answer, it is important to consult an HR consultant or an employment lawyer.

Checklist of questions for the payroll department

• what to do when the job classification system does not have a title for your specialist's position
• how to correctly dismiss an employee during vacation
• how to correctly process a one-day leave for an employee during a business trip
• how to correctly process new maternity leave when the previous one has not yet ended
• how not to miss the fulfillment of the disability quota at the enterprise
• what to do when your company has received an enforcement order for debt recovery from your employee
• what to do if an employee did not show up for work and did not inform anyone about it, etc.

Can your company's specialists quickly answer all these questions? We can and do it every day.

What is the advantage of outsourcing payroll processes?

Usually, when you outsource payroll, a team of specialists with experience in solving diverse and complex issues works for you.

In our company, HR specialists can quickly involve auditors, tax and HR consultants, or lawyers in your matter.

How a company transitions to payroll outsourcing at UHY Prostir

1. You send a corresponding request to hello@uhy-prostir.com or call +38044 492-87-16.
2. We contact you within a few hours and arrange a meeting or an online call. Or, if you prefer, we can study your needs and business specifics through correspondence in Telegram, Whatsapp, or Viber.
3. Based on the received data, we send you a price proposal for payroll calculation and payment services within one business day.
4. You analyze the information, compare it with other offers, and make the right decision.
5. If you choose us, we agree on all details and conclude a contract.
6. We take over the cases.
7. And we professionally and responsibly manage your HR matters.

Typically, we complete all 7 stages within 5-10 business days.

What we do as part of a payroll project

1. Calculate salaries and other payments
2. Prepare related reports for state bodies
3. Prepare documents at the request of employees, such as bank certificates and others
4. Prepare management reports.

It is also important that the implementation of a payroll project is not limited to the 15th of the month, when advances are paid, and the last day of the reporting month.

After all, in any company, the process is constantly ongoing:

• hiring and dismissals
• vacations and sick leaves
• personnel movements
• preparation of pay slips
• certificates
• application-calculations to the Social Security Fund
• coordination and resolution of current tasks, etc.

What software we use in our work

We use programs such as:

• 1С
• Microsoft Project
• Microsoft 365
• SAP Business One
• Vchasno, Medoc, Sota
• Electronic taxpayer's cabinet.

We always decide with you which program to use and can change it at your request.

How the process of preparing answers and consultations is organized

For clients, we prepare consultations, both in writing and orally, during a personal meeting or online. With sufficient experience and knowledge in the field of labor law, we also provide answers to these questions. Consultations can be provided by both the project manager and a lawyer, if a deeper analysis of legislation, judicial practice, etc., is required. More often, however, the work is carried out jointly.

Practical cases from payroll outsourcing practice

Case 1: automation of payroll calculation and payment process

The client company's number of employees rapidly increased to almost 200. This is a manufacturing company, and therefore the following components exist:

• piece-rate wages
• overtime
• night shifts
• surcharges for certain types of work
• business trips
• sick leaves and vacations.

Payroll accounting is maintained in the 1C ZUP program, and to calculate it, too much time had to be spent on manual data entry. We came up with a good idea of how to automate this process. The client uses a special program for employee time tracking. Based on the 1C ZUP program, we, together with programmers, made modifications.

And it turned out like this: if you upload a file with all working time data for half a month/month from the time tracking program and import it into 1C ZUP, then 1C performs all possible calculations based on the entered data. For example, calculation of overtime, night shift surcharges, all possible bonuses and allowances, vacation pay, sick leave, and this information also gets into the time tracking sheet.

It is always better to find time and automate all possible accounting processes, because in the future this will free up time for development and also minimize the possibility of errors due to the human factor.

Case 2: atypical employee work schedule

A newly established company where the employee work schedule is atypical; employees can work in the morning, afternoon, or evening, determining themselves when and how many hours to work, but not less than 8 hours a day for full-time employment. It was not an easy question how to make this compliant with legislation and suitable for the client.

What we did:

• conducted joint work with our lawyers
• introduced the concept of irregular working hours
• developed templates for necessary orders and regulations
• provided recommendations for time tracking.

FAQ

1. Do you have experience working with companies that have foreign employees? Do you assist with obtaining all necessary permits? Yes, our clients have foreign citizens among their staff. The preparation of all necessary permits is handled by our lawyers.
2. Do you provide services for the preparation and submission of declarations of property status and income of employees? Yes, we do.
3. Can your employees communicate in English? Of course, as a significant part of our clients are foreign companies, and business English communication is mandatory.
4. How quickly can a manager respond to a request? It depends on the complexity of the request. Usually, we respond to a request within one business day. If more time is needed to fulfill the request, we always inform the client about it.
5. What if something is not stipulated in the contract, and, for example, a new report appears or new documents come into force after six months? We add new information to our contract.
6. Do you bear responsibility for possible errors in your work? Yes, our professional liability is insured for 10 million UAH with the insurance group Allianz.
7. If I decide to terminate the contract early, will there be any penalties? You can terminate the service agreement at any time; no penalties are stipulated by the contract. We will prepare and transfer all cases on time and in full.

You can read more about service packages and their cost, our team, and client testimonials on the page Payroll calculation and HR administration. If you are interested in comprehensive accounting services, please visit the page Accounting outsourcing.

If you find it difficult to understand whether accounting outsourcing is suitable for your company, a short video from our YouTube channel Biznesuy might help you.

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