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Outsourcing Payroll Processors to the Philippines



Since the BPO industry’s inception in the Philippines, it has indeed grown at a rapid speed and put the country on the map – proof of the individuals’ reliability and expertise. Companies from across the globe are making a strategic move by outsourcing their services here, and it is how Colliers cited that the Philippines is poised to capture a bigger slice of the BPO global market share in the coming years.

The growth is attributable to the increasing demand of businesses while ensuring that they can reduce costs, focus on their core business activities, and have no shortage of personnel. A 2021 report released by Deloitte back in 2021 mentions that payroll services are one of the most often outsourced services.

Good for you, outsourcing payroll processors to the Philippines won’t take you long! As long as you have the necessary cloud-based platforms in place, then you can proceed to give an orientation about your business, including the requirements, and have the payroll processor work on the tasks smoothly!

What are payroll processors? 

When it comes to taking care of the company’s employee checks, processing payroll accounts, direct deposits, and other forms of payment, a company normally relies on a payroll processor to take care of the job. Sometimes, the coverage of their work is not limited to just the company’s employees, but are also tasked with processing independent contractors’ payments too. 

A payroll processor would usually refer to the company records to determine how many hours a person has worked, and the hourly wage. From there, he or she would also be able to withhold taxes from employee payments in compliance with the various applicable laws in the particular jurisdiction, including other contributions for retirement, medical insurance, and such. 

What are the responsibilities of a payroll processor?

  • Collecting and maintaining payroll records for each employee, including the time data and pay rate
  • Setting up updated employee records in the personnel database
  • Reviewing all payroll forms and making sure there are no discrepancies (making the necessary corrections if there are any) promptly 
  • Processing payroll distribution, direct deposit, and retro-expenditure transfers, according to the employee’s validated work hours
  • Applying deductions from taxes, premiums, contributions, and other withholdings 
  • Preparing detailed reports regularly 
  • Providing assistance to employees (if needed) regarding paychecks, as well as other issues that may arise 
  • Maintaining the confidentiality of all employee records and payroll operations of the company 

What are the skills of a reliable payroll processor? 

Having someone on top of finance-related tasks is crucial to every business. When it comes to payroll processors, here are some of the required skills to be successful: 

1. Time Management: The ability to manage deadlines is a crucial skill needed by a payroll processor. Since they are responsible for generating the paychecks of many individuals, they have to be able to submit all that’s required and file taxes on time.

2. High Attention to Detail: Almost any job in the world requires high attention to detail, but all the more for payroll processors as they need to be able to enter the correct information into the company’s payroll system. Aside from that, regular check and balance for errors should be done to ensure that the company is paying the employees correctly. Payroll processors’ high attention to detail would also be beneficial since they need to work on many compliance-related issues (ensuring that they are complying with various laws and regulations).

3. Data Analytics: For global companies that are leaning more toward data to make better decisions, data analytics has surely become an important part of business operations. While not all payroll processors are required to be proficient in this aspect, they will surely benefit the business more by being more familiar with data analytics software.

4. Computer Skills: A payroll processor would often need to navigate through programs to input data – may it be personal information, or work hours. With that said, they need to be proficient with computers and also have some basic foundation to troubleshoot any issue that may arise.

5. Communication Skills: Some employees may have various questions and concerns over their pay and would need to refer to the payroll team to get clarity. This is why good communication skills would really come in handy for a payroll processor. They are expected to convey information properly not just to the payroll staff and management, but also to those who may find some matters too complex. 

Payroll Processing Tools 

Small and large businesses alike use different payroll software to automate the work and manage payments more efficiently. Here are some of the commonly-used ones:

  • Gusto
  • Paychex Flex
  • QuickBooks Payroll
  • Workful
  • OnPay
  • ADP
  • Payroll4Free
  • Rippling

Keeping accurate and up-to-date records, setting up deposits, and withholding payroll taxes on time can be pretty difficult and time-consuming when done manually. To avoid paying hefty fines, these tools will surely help keep the processor from making a mistake. 

We can provide you with experienced and reliable individuals who can focus on complex tasks, like calculating payroll taxes and benefits, so you can keep your laser focus on other important business projects. 

Outsourcing to the Philippines for Payroll Processors can ensure that all your employees are paid correctly and on time. We aim to help you scale your business, and you are only one click away from getting the support you need. 

Here are some of the benefits you can get from outsourcing to the Philippines: 

  • When you outsource your payroll processors to the Philippines, then you will enjoy reduced operation costs by up to 70%. This only means that you would be getting the same efficiency and quality, similar to when you build an actual team in your office. Who would say no to savings? We are all about giving you the most cost-effective solution, without really degrading the quality. 
  • Get access to a trained and solid team of payroll processors that will bring maximum efficiency and value to your business.

What are you waiting for? All it takes is a simple email or message to get started. 

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