Owning a business in Saudi Arabia means you wear several different metaphorical hats. There are some which can feel like they’re a natural fit to you compared to others. It’s likely that you’ve started your business to explore your passion or provide a fresh, unique offering to UAE’s lucrative markets. However, you may have underestimated how much administrative tasks and burdens you have to handle, such as payroll processing for employees.
Top Reasons to Outsource Your Payroll in KSA
From capturing the hour’s employees worked, administering employee benefits, managing the pay stubs, and ensuring full compliance with local legislation, there’s more to payroll processing than just cutting a cheque. Managing the administration for these tasks and more can be complex, cumbersome and ultimately stressful. What’s more, accurate payroll processing in Saudi Arabia is crucial as mistakes can result in fines and penalties.
Fortunately, there is the option for businesses to outsource their payroll functions! Here are the top reasons why you ought to consider payroll outsourcing in KSA:
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You can buy time!
Contrary to what most people think, you can actually buy time! Engaging with a third-party outsourcing firm for payroll processing in Saudi Arabia will give you access to solutions for workforce management. You will also have experts that can offer knowledgeable advice on how to complete all HR-related tasks most effectively. Basically, you get to save time from having to learn the best practices yourself and the hard way! As a bonus, you allow yourself to focus your limited strategic attention on what brought you into business!
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Save cash in the process
While payroll outsourcing in Saudi Arabia obviously carries a bit of financial cost, you can do a cost/time analysis. As you do so, you will clearly see the benefits of hiring a qualified and reputable payroll service provider in KSA. Have you heard of the maxim, time is money? It is absolutely true!
The time that you spend in calculating your payroll for every single period, preparing and remitting the amount to the government can cost you valuable time. This time is better spent focused on core areas of your business such as sales and customer service.
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Full compliance to existing payroll legislation and the changes
Businesses in Saudi Arabia that employ staff have certain obligations with the payroll process. This includes social security and tax contributions. While no income tax is due on the wages of employees based in Saudi Arabia, nonresident withholding tax and social security contributions are to be remitted.
For Saudi nationals, social security contributions are charged currently at ten percent. Withholding tax is paid at the current rate of five to twenty percent. Online payslips can be issued online in Saudi Arabia. Payroll reports are to be maintained for at least seven years.
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Not a single tax remittance was missed
Whether you have just a single employee or hundreds of them, you can choose your payroll processing partner to submit tax remittances directly to the local authorities. Late remittance penalties in Saudi Arabia are costly. The General Authority of Zakat and Tax or GAZT can penalize a business up to SAR 50,000, depending on the violation. The annual payroll fees you pay for payroll outsourcing in KSA can end up saving you from substantial penalties!
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Create a great team
As an entrepreneur, you know exactly the value of your employees. What you want is to build a great team. This means you have to pay them on time and accurately every single time. Payroll service in Saudi Arabia will help you stay on top of bank closures and statutory holidays in your local setting. You will also eliminate the manual work required in writing cheques and the risk of having cheques delayed or arriving late.
A reputable outsourcing firm can offer you custom implementation options. They exist to help ensure accurate wage calculations and deductions and accruals have been set to meet your specific needs.
Reliable payroll solutions in KSA
Being an entrepreneur in Saudi Arabia is incredibly rewarding. However, the pressure of becoming an expert on every single area of running a business can be a huge burden, most especially for new business owners. Selecting a reliable partner for payroll processing can allow you to finally take a breath. Share the load and tasks with a team that is dedicated only to helping your business succeed.
You can find added value from a payroll service provider which offers a personal service model. This is where each business is assigned an entire team of knowledgeable payroll experts that can be reached out to for questions on anything related to payroll and HR. Remember the right partner for payroll processing in Saudi Arabia can be a great asset!
To learn more, contact us here in Payroll Middle East today!
