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7 Reasons Why Companies in Thailand Should Outsource Their Payroll


Payroll processing is one of the key internal operations of a company. It requires effort, time, and a deep understanding of Thailand’s rules and regulations to ensure every process is carried out with full compliance to avoid getting charged with fines and penalties.


Some businesses prefer to manage their payroll functions in-house via do-it-yourself apps and manual bookkeeping, while others prefer engaging with a professional payroll outsourcing provider. Here are seven reasons why Thailand firms should outsource their payroll.

Reason 1: Time-saving and Boost Productivity

Payroll processing is a time-consuming task; keeping track of garnishments, benefits deductions, paid time off, new employees, and terminations while keeping up with the country’s latest regulations can be frustrating. And regardless of the number of employees in a company, attending to payroll calls for a great deal of attention to detail.

Outsourcing payroll functions help reduce the internal workload and enables employers to focus their effort and time on handling the company’s core functions. In most cases, business owners will also have various options to maximize the time saved throughout the pay period. They can easily add additional tasks, including benefits administration or new-employee reporting, into the outsourcing mix. Moreover, they can specify how often they would like the payroll provider to contact them regarding the payroll-related work.

Payroll outsourcing also helps frees up the accounting personnel or human resources to work more on strategic jobs, ultimately impacting its bottom line.

Reason 2: Reduce Costs

Business owners can reduce a significant amount of direct payroll processing expenses by engaging with a payroll provider. Although huge businesses can afford to keep a robust payroll department, small to medium-sized businesses may not have sufficient money to maintain an in-house payroll team. An in-house payroll department’s overall expenses can easily add up with the personnel’s wages, benefits, and necessary training.

Reason 3: Avoid Legal Penalties

Payroll regulations in Thailand can be quite challenging to navigate. Some in-house employees may even find them confusing. Not reporting payroll in an accurate and timely manner may cause the company to be fined or penalized. Penalties for omissions, errors, or late payroll tax filings may be quite costly.

Outsourcing payroll to professionals helps protect the company from these mistakes. Payroll providers have accounting experts who know the ins and outs of payroll-related laws in Thailand and ensure the company always conforms with both the existing and new regulations, protecting it from getting legal penalties.

Reason 4: Gain Access to a Team of Experts

Most business owners and payroll-related personnel do not have enough time to study and research the country’s ever-changing laws, withholding rates, and government structures. By outsourcing payroll, small companies can leverage the expertise of which was previously unavailable to them.

Competent payroll firms offer a team of experts who can manage various areas of payroll and human resources, which include benefits and deductions administration in a payroll system and workers compensation. 

Reason 5: Enhanced Security

Payroll processing is a potentially high-risk business operation. Even with long-time trusted staff, the risks of funds embezzlement, identity theft, or tampering with company files for personal benefits are always present. Using in-house payroll software also poses an apparent risk, especially regarding the safety and security of the company’s network or server.

Outsourcing payroll processing can help minimize these risks. Most payroll services agencies have technologies that can identify and alert clients on many types of payroll fraud. Apart from the availability of multiple server locations and redundant backup, a competent payroll firm invests in state-of-the-art systems for data storage and protection. Moreover, online payroll solutions provide a haven for the company’s confidential payroll information. 

Reason 6: Avoid Technology Advancement Expenses

A common question small business owner often ask is whether they need to buy the latest version of their payroll software or use the latest tax tables. Utilizing the wrong tax tables may lead to tough penalties. Also, paying a maintenance fee and upgrading the existing software will add up to ongoing expenses. Outsourcing payroll eliminates these headaches and expenses while keeping the payroll operating smoothly. 

Reason 7: Peace of Mind

Business owners can finally move on from the pain and hassle linked to the payroll process with a professional payroll company’s help. They only have to give the basic information, and the payroll agency will take care of the rest. Furthermore, with the guarantees of error-free tax and payroll filings and payments, business owners can stop worrying about violating the law and legal penalties. They only have to concentrate on running a profitable company.

Choosing the Right Payroll Outsourcing Services Provider in Thailand

Payroll outsourcing services providers help streamline payroll-related operations and allow more efficient business management. However, choosing the right payroll outsourcing Thailand can be hard considering the considerable numbers of available payroll providers.

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