Payroll Outsourcing

Payroll Outsourcing Services

Company’s payroll is a sensitive and accuracy-driven administrative task. It is also a costly and time-consuming process. For many Hong Kong start-up companies, it is important to have essential employees who can bring in more business, rather than spending time handling payroll functions. Thinker Tool’s payroll outsourcing services can help our clients to save the cost, streamline their business operations and focus on core competencies.

payroll outsourcing
payroll outsourcing services

What is Payroll Outsourcing?

Payroll outsourcing refers to the practice of delegating the responsibility of payroll processing and related tasks to a third-party provider. Our payroll outsourcing services and solution include:

  1. Calculating employee salary (include all remuneration, earnings, allowances, tips, service charges, sick leave allowance etc.).
  2. Providing itemized payroll reports and employee pay slips.
  3. Handling bank transfers to employee accounts; itemized monthly statements.
  4. Calculating and Administering Mandatory Provident Fund (MPF) contributions, leave, and overtime balance records.
  5. Filling employees’ tax document and mandatory Government reports such as (IR56B).

payroll services hong kong
payroll outsourcing hong kong

Benefits of using our payroll outsourcing services

Cost savings

Outsourcing payroll can save the costs on hiring and training in-house payroll staff, and long-term investment in expensive cost on software and hardware.

Cost benefits and increased efficiency

Our payroll outsourcing can help your business to save time and more focus on your business operations by freeing up house staff to focus on other core competencies. This can lead to increased productivity and profitability.

Improved accuracy and compliance

We are experienced in payroll processing and are up-to-date on the latest tax laws and regulations. This can help businesses to ensure that the payroll is processed accurately and with be fully compliance with Hong Kong laws and regulations.

Lower risk

Payroll outsourcing can help business to reduce the risk of payroll errors and fraud. By outsourcing payroll, it can free up HR to focus on engagement which can help to protect the business from financial and legal liability.

Frequently Ask Questions of Payroll Outsourcing

1. Why do we outsource our payroll?

With our payroll outsourcing services, you are not required to invest in costly software to handle the payroll. The stress and liability of the employee who is responsible for handling payroll on time will be removed. Employees are free to focus on managing their core business. In addition, you can ensure that payroll information stays confidential and is full compliance with Hong Kong regulations.

2. How common it is for companies to outsource their payroll to third parties?

Outsourcing payroll is becoming more common within the Corporates HR units. According to a survey conducted by Statista in 2022, 12% of organizations globally opted for complete outsourcing of their payroll functions in 2019, while 26% of organizations chose to co-outsource payroll, meaning they outsourced certain aspects of payroll while managing others internally.

3. What will be included if we outsource our payroll to you?

We provide the following services:
– Salary calculations (include all remuneration, earnings, allowances, tips, service charges, sick leave allowance and etc.);
– Providing itemized payroll reports and employee pay slips;
– Handling bank transfers to employee accounts; itemized monthly statements;
– Administering Mandatory Provident Fund (MPF) contributions, leave, and overtime balance records;
– Employees’ tax filing (IR56B) and reporting.

4. Can you also keep track of annual leave, sick leave, and some other vacations?

Yes for sure. Our consultant will contact you to understand your leave policy and we can incorporate it into our system. You can also leverage our system to let employees apply for leave online by mobile apps.

5. How should we start if we decide to outsource our payroll?

You can email us the salary packages of your staff members. The designated form can be provided if needed. We’ll take it from there, computing the accurate numbers into our system. Monthly salary itemized calculation and invoice will be provided to you before the payment date. Bank transferring and/or delivering checks and pay slips, arranging for MPF contribution monies to be debited from your account to the MPF trustee directly. Every March, we will take care of all IR56B tax reports.