Small business owners in Kuwait know that keeping costs low is a part of any sound business financial strategy. But, with payroll processing, keeping it in-house doesn’t cut it. Entrepreneurs who think they are saving money if they sweat the details of processing payroll spend more time in it. Outsourcing payroll in Kuwait, on the other hand, saves small businesses at least a third of the entire time it takes for businesses to manage payroll operations in-house.
Reasons to Outsource Payroll in Kuwait
Owning and running a small business does not mean you need to do every single thing yourself just to save money. Outsoaring payroll in Kuwait can be the more affordable option, regardless of company size. Let’s take a closer look at how your business can benefit from outsourcing to payroll specialists.
1. Greater focus on the business
Outsourcing administrative processes, including payroll, can give you more time in focusing on what your company does best. This translates to improved productivity and more resources for business growth and strategic planning. Outsourcing payroll in Kuwait can help improve the company bottom-line.
2. Simplification of the payroll process
Because outsourced specialists will take care of the whole payroll process, you won’t have to acquire any expensive software programs and their upgrades. Any payroll data from you is protected as well through several levels of security that are hosted off-site. This eliminates the need for you to constantly perform backups while ensuring you are compliant with the government legislation.
With outsourced payroll services in Kuwait, you can simply phone in or input the employee hours and units. Your service provider will handle the calculations, produce the cheques or deposit the funds to employees’ accounts, and maintain payroll records.
3. More focus on development of employees
Attracting top talent and retaining them have become increasingly difficult. This means HR processes play a crucial role in the growth and success of a business. Offload tasks to payroll service providers in Kuwait for managing salaries and benefits. They can even take care of tracking employee attendance and performance. When daily tasks of your HR are out of the way, they can focus on the more critical aspects of your business. This includes hiring and keeping top talent, making sure the key roles are filled from within your company.
4. Avoid tax headaches
Majority of small businesses that process their payroll inhouse admit that they’ve received penalties in the past for incorrect and/or late payment remittances. Kuwait doesn’t have personal income tax, but employees and employers are required in contributing to their social security amounting to 19.5% of each employee’s wage. Employees pay up to 8 percent of their salary with a ceiling of 2,750 KWD each month while employers pay 11.5 percent. Foreign companies are also required to pay a fifteen percent corporate tax rate.
Payroll service providers in Kuwait can help ensure payroll is calculated on time and employment tax reports, including end-of-year reports are all submitted on time and accurately.
How to Choose Outsourced Payroll Services in Kuwait
As soon as you have decided to outsource payroll processing in Kuwait, it is important that you choose the service provider that is right for your business.
Step 1: Determine the needs of your business
Payroll service providers in Kuwait range from a one-man shop to multinational companies. It is, therefore, important to consider whether a service provider has the know-how and resources to handle both gradual and immediate shifts in your company. For instance, if you are planning in opening another branch or office, increasing the number of employees, or acquiring another business for growth, your service provider must be capable of accommodating your needs accurately and quickly.
Step 2: Check for experience.
When shortlisting several payroll services in Kuwait, check for experience. Choosing a payroll service provider that’s newly established but offers discount pricing isn’t a good idea. Making sure your staff members are all paid without error and promptly is a priority, and a task best not lest onto providers with no or little experience. Established providers can demonstrate their record for accuracy and reliability. They also offer additional resources that are beyond payroll.
Step 3: Ask for upfront and transparent pricing.
There are service providers that charge extra fees for new staff members that are hired. To avoid hidden fees, make sure the pricing structure of your chosen service provider is explained beforehand even before you sign a service contract. Have them specify supplemental charges and all processing fees. Check if the service provider is willing in disclosing the possibility for pricing changes down the line.
Select only a qualified payroll service provider in Kuwait like Payroll Middle East. This way, you can realize significant savings both in labor and in time, and reduce or even eliminate expensive payroll processing mistakes.