With so many global payroll outsourcing providers available, how do you choose the best option for your business? One model does not fit all, so it is essential to understand the differences. Payroll management in Dubai is an essential part of running a business, but the multiple tasks to ensure accuracy are often overlooked.
In this article, we will explain how to find the best global payroll provider for your business. Every business must pay its employees, and all employees expect to be paid on time and properly. Whether your business is global, local, large, or small, you need to get it right.
- What is a payroll provider?
- Consider your company’s payroll outsourcing needs
- Tips for payroll providing
- Advantages of hiring a payroll outsourcing provider for your company
- Keys to choosing the best payroll service
- How can we help you obtain more information about global payroll providers for your company?
1. What is a payroll provider?
A payroll provider is responsible for providing a specialized service through its professionals. Its functions range from the processing of payroll outsourcing service calculations and tax returns to personnel administration, payments, and advice, among others.
In short, payroll service is responsible for carrying out a wide range of procedures required by the payroll process in the UAE, something that allows human resources to free themselves from the administrative burden and gain agility.
There are variables and choices when it comes to determining how to process your payroll in Dubai. Our Professional Employment Organization manages payroll for companies around the world. With so many years of experience dealing with hundreds of payroll scenarios, we have put together a list of things you should consider when looking for the right model for your business. One model does not fit all.
Companies have different options when it comes to payroll models. Payroll management in the UAE can be done in-house, locally, through a payroll service provided by an aggregator, or through a bespoke model with the help of local experts around the world. There are pros and cons to using each of these models, and your final decision depends on the type of support you are looking for your business.
2. Consider your company’s payroll outsourcing needs
Using the wrong payroll provider can be detrimental to a business. When looking for the best payroll option for your company, you should ask yourself the following questions:
- How many employees do we have?
- In how many countries do we have business operations?
- How complex are the regulations of the countries in which we operate?
- Do we have expansion plans abroad?
- Do I have enough in-house staff specialists to develop payroll?
- What payroll platforms (middleware) can be integrated into our company’s Human Capital Management system?
- How much flexibility do I need from my payroll provider?
- Do I need consolidated reports?
- Do we have a budget to outsource?
The answers will help you determine the type of payroll model that best suits your company’s needs.
3. Tips for payroll providing
3.1 Keep it internal
Small businesses that operate in one or two jurisdictions could benefit from using an in-house payroll system. There is an advantage to having someone from the team in the office that understands your business and can resolve any issues that arise.
However, if you are looking to expand in the future, the in-house model is not ideal for companies operating in multiple locations due to a lack of visibility and control and the risk of non-compliance. In this case, the appointment of a payroll provider could be the best option.
3.2 Compliance is the key
By partnering with a payroll provider, such as an Employer of Record, you are putting your trust in their ability to be compliant with local regulations. While the responsibility for tax compliance and other issues may rest with your provider, the penalties for non-compliance remain with you.
It is worth checking vendor references to ensure they are trustworthy and certified to protect employee data. Request case studies and references to learn more about how a payroll service provider operates.
Payroll workers use a technology instrument known as middleware to bring their services. Make sure your company’s human capital management system is compatible and can be seamlessly integrated. Finding a payroll provider that uses a flexible system that works with your management system can save your business money in the long run.
Technology can vary widely; take your time to find the answers to these questions:
- How does the platform work and how will its use benefit my company?
- Does the platform use a ticket system?
- Can employees use the platform to access their pay stubs?
- Does the platform provide data analysis?
- Can your team access payroll data for all employees in each country that is managed?
3.4 Local provider
The local model can be a good option for companies to outsource payroll if they have no plans to expand their operations abroad. In this model, the provider is headquartered in the country where employees work and are knowledgeable about local payroll rules. But does not have offices elsewhere or provide solutions in multiple languages.
Disadvantages include the need to contract with a variety of providers; local providers unusually adhering to current Service Level Agreements; and the limitation of the model if the business expands internationally.
3.5 Aggregator model
If you are looking for a single global payroll provider, the aggregator could be seen as the perfect option. However, aggregators typically contract with local providers to handle payroll for global companies, which can result in inconsistent service levels and lack of control, and potential risk of non-compliance penalties.
It is important to ask questions about how aggregators ensure compliance; how the process between providers is monitored; and how they communicate with subcontractors. Aggregators can be more expensive in the long run if they cannot bill you locally.
3.6 Global payroll providers with local knowledge
Working with a global payroll provider with local knowledge ensures that the payroll process is in place. Also, is locally by local experts in the jurisdictions where your employees work.
Many can be seamlessly integrated with your human capital management system. Allowing visibility and control over global operations. This, with the ability to generate local tickets for local employees. Essentially sensitive employee data does not cross borders. This model is built on accuracy, consistency, and risk minimization.
3.7 An adaptable solution for multinational payroll
When you run a global business across multiple countries, having a single payroll solution is essential. Our solution helps simplify payroll by providing a balance between global and local payroll expertise. Provides reliable data for compliant payroll and helps you make better decisions aligned with your business strategy.
With our innovative cloud-based technology, you benefit from a single, adaptable system that grows with you. In this way, you can manage payroll no matter how complex your needs may be, regardless of the size of your company, anywhere in the world.
EOR Middle East’s worldwide payroll services keep you up to date with the tens of thousands of supervisory agreement variations each year. You will also benefit from the payroll expertise of regional and local experts.
4. Advantages of hiring a payroll outsourcing provider for your company
Without a doubt, having a payroll service will bring you benefits. Also, will allow you to avoid mistakes, focus on your business and save time, effort, and costs. In addition, it will be in charge of calculating how much employees should be paid in each pay period, taking into account salary rates, digitizing the company’s salary records, and managing shift differentials, overtime, vacation pay, taxes, etc.
However, some advantages offered by an optimal service go beyond the automated processing of payroll and its accounting and, in addition, allow you to have all the information at your fingertips, carry out an effective follow-up or integrate the management of payroll and software with official applications.
In the same way, a suitable provider guarantees compliance with labor regulations. Also, the implementation of new developments, security, support, and the personalized support of a team of professionals.
5. Keys to choosing the best payroll service
Not all payroll providers offer the same level of service or have the same features. There are substantial differences between their benefits. For this reason, we specify some precise facets that it is prudent to consider when signing a good provider:
5.1 Technology: Payroll software
A service that is really effective will offer you payroll software that manages administrative and personnel tasks in an efficient and comprehensive way. Logically, the software should have an intuitive and easy-to-use interface that allows you to execute payroll, perform payroll calculations and add employees quickly and without complications.
Some payroll software also has a series of very interesting features for your company, such as cost simulation functions, annual data summaries, or the configuration of Agreements. Other related issues at this point are the availability of workers to their data, as well as an unbeatable user understanding.
System integration helps save time and money, eliminates the possibility of duplicate data entry, and reduces paperwork. To optimize the process, it is essential that the payroll provider offers an interface that integrates with the public administration and social security. That integrates with the company’s financial system, with other corporate systems that manage the data of the company’s people, as well as with all personnel administration processes. It is vital that the payroll software can perform these integrations.
Payroll data includes all of your employees’ personal information, as well as your company information and other sensitive data. Such as access to bank accounts. It is essential that your payroll service has top-level security that can guarantee the protection of all data. The optimization of payroll management does not make sense if data security and quality of results are not achieved, not only in terms of legislation, but also at the process level.
5.4 Custom monitoring and reporting
Extensive and detailed payroll reports provide actionable insights into personal and financial data. Access to this information can help monitor the company, carry out follow-ups, searches, filters, and, ultimately, have access to relevant data in an organized way. When signing a facility, make sure you can refer these reports.
In short, the optimization of payroll management generates an improvement in productivity. But of course, to be sure we are getting this improvement, we will need to measure it with metrics or KPIs that help us understand the complexity of the data. Thus, we will be able to monitor these metrics and verify that they are both with the interests of the organization and with those of the human resources department.
6. How can we help you obtain more information about global payroll providers for your company?
EOR Middle East is the best option if you are looking for a payroll outsourcing company in the UAE that can handle your company’s payroll so you can focus on your core business.
We are your finest ally in managing your company’s payroll in all of this. We have also worked with huge corporations, all of whom have expressed satisfaction with the service we provided. In terms of managing payroll for our clients, our company is the market leader. We work in the following areas:
EOR Middle East provides a variety of services, including payroll outsourcing, with the goal of allowing you to focus on tasks that will help you grow your business rapidly, and, as a result, this service will improve your management.
Do you have interest in outsourcing your payroll to EOR Middle East? If so, you may reach out to us by email at [email protected]. If you wish to hire our services or have any queries about our solutions; our representatives will gladly assist you and answer any questions you may have. Call us at +971 43 316 688.
On the other hand, if you want to work in the Middle East for a reputable organization while also reaping the rewards of doing so, you can visit thetalentpoint.com. You may also send your CV to [email protected] via email. Our recruiters will find you a job in the Middle East that suits your qualifications.