One of the key functions in a company which can either be outsourced or kept in-house is payroll
by David J. James, director of international desks at Mazars in Poland
Some people consider this an inalienable part of bookkeeping, so it is natural for the bookkeeping department to be entrusted with it, however, there are good reasons why businesses employing non-residents could benefit by taking a tailored solution from an external specialist firm.
Unlike other aspects of administration, where errors are found and put right and nobody takes it personally or gets upset about it, payroll is one area where mistakes really undermine morale and can be often taken personally. You don’t need such stress in your workplace. Hence, you need a solution which is as error-free as can get and unless it is carried out by specialists, that probably isn’t going to happen.
In addition, payroll is tied to maintenance of HR files for staff and management and looking after compliance with employment, tax and social insurance laws. This is a large task for non-specialist bookkeepers to handle, and mistakes can be very costly, not so much during the time of employment, but whenever claims are made afterwards. Many companies not taking due care with such matters can find that even their time recording is really a time bomb waiting to explode in court or during a visit by the PIP inspectors. You cannot be sure you are covering all the risks unless you outsource this.
When it comes to expatriates or non-residents, especially those dividing their time between Poland and other countries and only partly remunerated here, there are often complex considerations – especially in the cases of diplomatic, certain educational and religious or charity employees. These all require specialist knowledge. There are issues surrounding residence, benefits-in-kind and social insurance. Ensuring that more than one country receives the correct information and tax payments can be a challenge.
Needless to say, in highly confidential environments, or in environments where the well-paid foreigner is not keen on all the staff knowing what he or she earns, the best guarantee once again is outsourcing to a professional provider. Holiday, sickness and maternity leave by payroll staff also no longer becomes an issue, and finally and maybe most compellingly – the move to outsourcing can usually save you money. Or you can outsource just for the period of an employee’s maternity leave.
With all these things in mind, we at Mazars have perfected a specially tailored service called “Diplomatic Payroll.” We work with several embassies exacting requirements for secrecy and competence in the above areas. However, the service is available on request to international businesses.