Realizing that importance, I chose the topic: "The process of implementing payroll outsourcing service for customers at RSM Vietnam" to make an graduation thesis to research and analyze
Reason to choose the topic - The urgency of the topic
Salary represents an employee's income based on their performance and the agreement with their employer, while also serving as a production cost for businesses Accurate and fair salary accounting is essential for enterprises, as wages tied to labor results can motivate employees, enhance business efficiency, and foster creativity in the workplace Beyond the base salary, employees also receive bonuses, allowances, and various forms of insurance, reflecting the commitment of both society and the business to support each member of the organization.
Labor and wage policies play a crucial role in the competitive strategy of private enterprises, as a well-organized workforce paired with a reasonable salary structure can enhance labor productivity, reduce production costs, and solidify a company's position in the market Consequently, increasing employee income is a primary objective in socio-economic development, and an effective salary policy is essential for business success To address this need, accounting and tax service companies have emerged, aiming to provide businesses with suitable salary calculation methods that lower costs and ensure operational efficiency.
For my graduation thesis, I focused on "The Process of Implementing Payroll Outsourcing Services for Customers at RSM Vietnam." This topic was chosen to gain a deeper understanding of the implementation process, allowing me to acquire valuable experience and insights that will benefit both my personal development and the business where I am currently interning.
Research objectives
Describe the salary accounting service implementation process that RSM Vietnam Company applies to customers as ABC Vietnam (company name has been changed to ensure confidentiality)
Comparing between theory and practice to draw conclusions, thereby giving recommendations to improve and further improve service delivery efficiency, especially in the salary accounting process at RSM Vietnam.
Research subjects and scope
Objects: Salary-related accounting services such as payroll, payslip for employees, payroll authorization, insurance, tax, union…
Scope of space: Office of RSM Vietnam Company in Ho Chi Minh City
Time range: Illustrative data are taken in January 2021
Research methodology
Observing, recording and directly interviewing accountants about the work execution process of each individual in each department of the Company
Collect data, vouchers and accounting books at the Company
Using comparison and inference methods to analyze work, from which to make comments and recommendations
Refer to the documents, textbooks related to salary accounting and reports, thesis and topics of students.
Research layout
The main content of the topic includes 4 chapters:
Chapter I: Introduction about RSM Vietnam Company
Chapter II: Unit using payroll accounting services overview
Chapter III: The process of implementing payroll outsourcing service for clients
Chapter IV: Comments and Recommendations
The graduation thesis faces certain objective limitations, primarily due to client information confidentiality regulations at RSM Vietnam Auditing & Consulting Co Ltd., leading to the use of a pseudonym, "ABC Vietnam," for the client company Additionally, some internal documents are excluded from the report The nature of the payroll outsourcing process necessitates the collection of only essential accounting documents and records for service provision and client advisory, resulting in incomplete documentation Despite diligent efforts to finalize the report, the presence of errors and limitations remains inevitable.
INTRODUCTION ABOUT RSM VIETNAM COMPANY
The company's history of formation and development
Established in July 2001, RSM Vietnam is a prominent mid-tier accounting and advisory firm that joined the RSM network in 2012 Committed to being the preferred choice for growing businesses, RSM Vietnam offers high-quality, personalized services to help clients achieve their goals through audit, tax, advisory, and outsourcing solutions With over 300 professional staff, the firm serves a diverse range of mid to large public-listed, multinational, and private companies across various industries.
RSM Vietnam is a prominent member of the RSM network, which ranks among the top seven global accounting networks With a presence in 116 countries and 750 offices worldwide, RSM employs over 41,000 staff, including 3,750 partners, to provide exceptional service to clients around the globe.
RSM Vietnam was established by a team of certified public auditors and accredited consultants with extensive experience in auditing and consulting since the inception of the industry in Vietnam This expertise enables RSM Vietnam to offer professional services that are not only tailored to the unique business environment of Vietnam but also meet international quality standards.
RSM Vietnam aims to be your trusted business partner by delivering innovative solutions that enhance your success both locally and globally Committed to providing professional services that adhere to international quality standards, RSM tailors its offerings to meet the unique needs of the Vietnamese business landscape.
RSM operates offices in Ho Chi Minh City, Hanoi, and Danang, employing over 300 individuals, including 40 professionals with CPAs accredited by the Ministry of Finance.
RSM's brand is built on five core values that guide our interactions with clients and colleagues: Respect, Integrity, Teamwork, Excellence, and Stewardship These principles are essential to our network and shape the way we conduct ourselves in every aspect of our work.
Introduce about organizational structure and type of business
1.2.1 The organizational structure of RSM Vietnam
Approved audit organization name: RSM Vietnam Audit & Consulting Co., Ltd English name: RSM Vietnam Auditing & Consulting Company Limited
Head office: 140 Nguyen Van Thu, Da Kao Ward, District 1, Ho Chi Minh City Vietnam Tax Code: 0302361789
Email: contact_hcm@rsm.com.vn
Legal representative: Mr Dang Xuan Canh - Managing Partner
Type of business: Limited liability company with two or more members
RSM Vietnam offers a comprehensive range of essential services for corporate clients, including auditing, security, accounting, financial advisory, tax consulting, risk consulting, corporate restructuring, and various financial solutions, all delivered by a team of highly specialized and professional staff.
Audit services and other assurance services
Some of the audit and assurance services the company provides are as follows:
• Audit of financial reports drawn up in accordance with Vietnam Accounting Standards, International Accounting Standards
• Contracts for the implementation of pre-agreed procedures for financial information (VSA4400)
• Audit of financial reports established in accordance with the framework of making and presenting financial reports for special purposes (VSA800)
• Auditing individual financial reports and operating specific items of financial statement (VSA805)
Accounting professionals at RSM Vietnam can help companies with daily needs in secretariat and administration Provide solutions for streamlining accounting procedures of enterprises
Some accounting and financial services the company provides are as follows:
• Prepare budget reports, governance reports and financial analysis periodically
• Temporary or part-time accounting support
• Design and operation of accounting systems
RSM Vietnam leverages a team of skilled tax consultants to foster strong collaboration with tax authorities, ensuring optimal support for clients The firm is dedicated to helping businesses develop effective tax strategies that align with their objectives while minimizing tax liabilities Among the key services offered are comprehensive assessments of tax obligations, aimed at enhancing clients' financial efficiency.
• All-inclusive tax advisory services
• Tax review and compliance filings
• Review self-made tax returns
Services also have many lines of services for different needs of the business, basically can be divided into the following groups:
• Advisory services: Tax Review, Tax Ruling, Transfer Pricing
Organization management apparatus
“Source: Self-synthesized by students”
Diagram 1 Organizational structure of RSM Vietnam's management system
The Executive Board is responsible for recruiting, evaluating, and nurturing management talent while establishing the company's strategic direction and development objectives They implement an effective administrative system and oversee the monitoring and control of organizational activities.
The Accounting and Customer Service Department manages all financial expenditures for the Company, including salaries, bonuses, and the purchase of machinery and materials It ensures thorough verification of all expenses and maintains accurate records of export and import data in compliance with Company regulations Additionally, the department is responsible for timely and precise documentation of asset movements and the implementation of policies in line with state regulations.
The Human Resources department plays a crucial role in managing personnel fluctuations through monthly reporting and effective monitoring and recruitment It is responsible for drafting, storing, and managing all company-related documents, including contracts and records Additionally, HR organizes and implements labor regulations, oversees labor management, and proposes employee rewards The department ensures that employee rights and obligations are upheld, including aspects such as salaries, bonuses, subsidies, and welfare benefits.
The Information Technology department is essential for maintaining the stability of the enterprise's IT infrastructure, including internet connectivity, wireless networks, applications, servers, and software systems It also oversees the management and operation of professional software solutions such as ERP, accounting, human services, and dispatch management to ensure efficient business processes.
Service group responsible for service delivery planning, service delivery, organization of monitoring and control of customer expectations within the framework of service fees obtained, in compliance with corporation policies.
UNIT USING PAYROLL ACCOUNTING SERVICES OVERVIEW
General introduction about the payroll outsourcing service user (ABC Vietnam)
English name: The Representative of ABC in Ho Chi Minh City (hereinafter referred to as ABC Vietnam)
Category: Automation technology, open automation system using computer-based control technology
Parent company: ABC GmbH & Co KG is the location of central departments such as development, manufacturing, administration, sales, marketing, support and service headquartered in Verl, Germany
ABC Vietnam, a subsidiary of ABC GmbH & Co KG founded in 1980, enhances global sales and service networks by assisting domestic manufacturers in creating modern, cost-effective systems and machines for their operations.
ABC Vietnam specializes in the deployment of open automation systems utilizing advanced computer-based control technology Their extensive product range includes industrial computers, I/O and fieldbus components, drive technology, and automation software, suitable for various sectors These products can function independently or together as a cohesive control system Embracing a philosophy of global and open automation, ABC Vietnam provides versatile solutions applicable in diverse fields, from CNC machine tools to smart building automation systems.
ABC's innovative approach to computer-based control, highlighted by the development of the Lightbus system and TwinCAT automation software, marks significant advancements in automation technology, offering robust alternatives to conventional control methods Additionally, EtherCAT emerges as a cutting-edge real-time Ethernet solution, paving the way for a new era of control concepts.
The TwinCAT (Windows Control and Automation Technology) automation suite is essential for modern control systems, transforming nearly any PC-based platform into a real-time control environment This versatile software enables the integration of multiple PLC, NC, CNC, and robotics runtime systems, enhancing automation capabilities across various applications.
* EtherCAT: Industrial Ethernet technology invented by ABC, makes machines and systems faster, simpler and more cost-effective.
Organization of Accounting Work at ABC Vietnam
ABC Vietnam, as a representative office, does not engage in business activities, resulting in no income from sales or services, and therefore is not required to issue or utilize invoices The office incurs various business administration expenses, including travel and guest reception costs, primarily due to the presence of a foreign parent company and visiting employees Additionally, salary expenses mainly consist of labor costs, encompassing both wages and salaries for office staff.
2.2.1 Organize the accounting book system
Currently, ABC Vietnam applies the accounting form of General Journal
All economic transactions are documented in the general journal using accounting vouchers such as invoices, receipts, and payment notes This data is organized chronologically for each accounting object, while also categorizing tasks based on their economic content.
Diagram 2 Accounting chart at ABC Vietnam
“Source: Self-synthesized by students”
The order of book entry at the company is as follows:
Every day, accountants utilize valid input accounting vouchers, including service invoices, receipts, payment notes, and advance payments, to efficiently import these documents into accounting software.
General accounting books, including the Ledger and General Journal, are automatically updated with information, along with related detailed accounting card books At the end of each accounting quarter, the period is closed, and financial statements are prepared for reporting to the parent company Additionally, data reconciliation between detailed and aggregated figures is performed automatically, ensuring accuracy and truthfulness based on the information entered during the period.
2.2.2 Organize the accounting reporting system
The accounting reporting system of ABC Vietnam applies the reporting system specified in Circular 200/2014 / QD-BTC
The person responsible for preparing reports is the representative office accountant
Currently the unit makes financial statements according to regulations for businesses, and the period of making annual financial statements Include:
The company's financial statements are submitted to the Tax Authority and the parent company, serving as a crucial foundation for securing investments and applying for bank loans.
2.2.3 Other accounting policies at the company
An annual accounting year starts on January 1 and ends on December 31 of the calendar year
The accounting currency unit in Vietnam is the Vietnam Dong (VND) When economic transactions involve foreign currencies, they will be converted at the exchange rate announced by the State Bank at the time the transaction occurs.
The company applies accounting regime according to Circular 200/2014 / QD- BTC
The straight-line method of depreciation of fixed assets
Value added tax calculated by the deduction method and quarterly accounting.
THE PROCESS OF IMPLEMENTING PAYROLL OUTSOURCING
Overview of payroll outsourcing service process
“Source: Self-synthesized by students”
Process for client acceptance and re-evaluation
- Step 1: Check Global Relationship Tracker (hereinafter referred to as "GRT") for service provision to customers
To maintain professional ethics and independence among RSM members, it is essential to avoid conflicts of interest when delivering services Consequently, RSM member firms are prohibited from offering Accounting and Auditing services to clients globally, ensuring alignment with these ethical standards Additionally, RSM Vietnam is not permitted to provide Accounting and Auditing services to the same client simultaneously.
Client is subject to GRT checking list, including:
• Listed entity, public interest entity
• Subsidiary of public interest entity
• Otherwise affiliated with a public interest entity
• Private equity or portfolio company of suchj a group
• Private entity with ownership or affiliates of any size that are in another jurisdiction or country
The GRT test consists of 3 steps:
Accept and re-evaluate client
Issue invoices and update revenue
Diagram 3 Process of Payroll Outsourcing service
“Source: Self-synthesized by students”
If the GRT test indicates that numerous international RSM members are servicing the group's clients, the Manager or Partner will email a conflict of interest confirmation letter to the pertinent RSM members.
Save the file under PDF format and excel files, save the evidence on the server Perform GRT test on the system of RSM network
Figure 1 Display of RSM Applications
Figure 2 Perform a GRT test of the client company
• Log in or register for an account via the link: https://rsmapplications.rsmlink.global/grt
• After logged-in successfully, click on “GRT search” buttom under the RSM’s logo in the upper of right corner
• Enter client’s name in the line “Search for Ultimate Parent Company” and search Save GRT checking evidence:
• Save the file under PDF format
Based on the results of the GRT check to send Confirmation Letter of conflict of interest with the RSM Network
- Step 2: Implement the evaluation and acceptance form
Purpose of evaluating the criteria to consider customer acceptance and quotation The content of the work is done in 02 steps:
• Complete the form according to the excel file "Client Evaluation & Acceptance" for the client
• Save the completed excel file and the signature scanned file on the server
Process for service proposal preparation
Process for service proposal preparation will be implemented in the following step-by- step sequence:
Figure 3 Process for services proposal preparation
Some clients may require to sign an “Non-disclosure Agreement" for certain services
• Assign person in charge of Proposal preparation
• Select format of Proposal (email, pdf, ppt…)
• Draft content of Proposal (information of client, scope of services, proposed fees, other terms…)
To ensure the consultant's independence in client services, the counselor must complete the “Client Independence Sign-off Form.” This form requires signatures from all relevant members, which should be collected and the document scanned and saved on a monthly basis.
Figure 4 Process for independence confirmation
Process for independence confirmation will be implemented in the following step-by-step sequence:
• Fill out the information on engagement team on the "Client Independence
• Sign the "Client Independence Confirmation Sign-off" Form (The engagement team)
• Sign the "Client Independence Confirmation Sign-off" Form (Partner)
“Source: Self-synthesized by students” a) Receive information and Receive the work
• Propose timeline to deliver results
To ensure an accurate payroll process, start by verifying the initial details provided by clients regarding employee income packages, company size, payroll schedule, and the personnel in charge (PIC) This involves receiving and processing the information, conducting thorough work, reviewing any necessary adjustments, and ultimately confirming the payroll via email before executing salary transfers, if required.
Diagram 5 Payroll outsourcing service process
• Assign work to Team Leader
• Re-confirm Client's information, the scope of work for payroll service
• Guide Senior to perform work
• Prepare Payroll Schedule, Checklist, General Information File
• Design Payroll Template, Payslip Template
Following the thorough review of the payroll schedule adjustments, PIC, and information summary file, the service department will email the customer with payroll details and verify the data submitted by the customer, addressing any additional requests as needed, and subsequently carry out detailed work.
• Input Client's Payroll data into Payroll Template
• Complete Payroll details, draft mail
• Prepare Payslips, Payment Orders according to Client's requirements c) Review and receive adjustment (if any)
• Check the Payroll and detailed data d) Send email to confirm the Payroll and Perform the salary transfer (if required)
• Confirm and forward Client's Confirmation
If Yes • Send email to confirm the Payroll
• Send the notification email if there is any change/ adjustment to the Payroll
• Receive information and check, confirm the information that needs to be changed/ revised
• Revise the Payroll, revise Payslips, Payment Orders (if any)
• Review of the revised Payroll two times
Process for billing and revenue update
The billing and payment process can be divided into several stages depending on the price, size, and agreement between RSM Vietnam and the Client on payroll outsourcing services
If customer require to pay on behatf from RSM
• Send Payslips to employees, send Payment Orders to Clients (if any), check the recorded documents, keep confidential all Client's information and report to the Team Leader/Manager
If customer doesn't require to pay on behatf from RSM
• Send Payment Orders to Clients (if any)
• Check the recorded documents, keep confidential all Client's information and report to the Team
Figure 5 Process for billing and revenue
Process for billing and revenue update will be implemented in the following step-by-step sequence:
• Prepare and print Fee Note
• Request for issuing invoice and update revenue
• Prepare past due reminder letter
• Deliver past due reminder letter
The process of implementing payroll outsourcing service for ABC Vietnam
Before making the quotation, the group implementing the Payroll Outsourcing service for ABC Vietnam Company to answer the questions in the form in the Excel file “Client Evaluation & Acceptance”
Next, RSM Vietnam conducted the test Global Relationship Tracker (GRT) as described in Section 3.1, Chapter 3
RSM Vietnam is free from any conflict of interest, allowing them to provide Payroll Outsourcing services for ABC Vietnam and prepare quotes for their clients.
3.2.2 Process for service proposal preparation
After evaluating ABC Vietnam's request, RSM Vietnam prepares and sends a detailed proposal The consulting services management reviews this information and assigns a consulting assistant to create a tailored quotation for ABC Vietnam.
• Format of proposal: Pdf (if any service arises, it will be quoted via email)
• Content of proposal: Customer information, service coverage, fees, other terms
• The compiled price quote will be reviewed and adjusted by the service team manager (if necessary) and then sent to ABC Vietnam
Upon acceptance of the proposal by ABC Vietnam, RSM Vietnam will draft the contract and forward it to the client Once the contracts and associated documents are signed, RSM Vietnam will commence service delivery The terms, interests, and agreements between RSM Vietnam and ABC Vietnam will be governed by the proposal and the signed contracts, as established through prior discussions and negotiations.
Following the evaluation and acceptance of customers at ABC Vietnam, the service team designates responsible personnel Each participant completes a commitment form and signs an independence agreement, with documents confirming their independence scanned and securely stored internally.
Figure 6 Application form confirming independence commitment
Receive information and Receive the work
After completing customer reception, RSM will send a summary of the service request, including customer information and the proposed delivery timeline, to ABC Vietnam This step is crucial to confirm the details regarding the collection package, including employee payroll, company size, payroll schedule, and the designated personnel in charge (PIC).
After receiving confirmation from ABC Vietnam, our experts will proceed to develop the Payroll Schedule, Checklist, Information aggregate file, Payroll Template, and Payslip Template This process includes a thorough review and adjustment of the complete Payroll Schedule, Checklist, and Information synthesis file to ensure accuracy and compliance.
Next, RSM Vietnam proceeded to collect information related to the salary calculation for customers:
• The total number of employees (personal information related to payroll preparation)
• Monthly basic salary and allowances (the bonus if any)
• Number of dependents of each employee
Send payroll and income information via email to ABC Vietnam while discussing confidentiality commitments related to labor contracts, payroll, and payslips Confirm the payroll schedule, the person in charge (PIC), and the commitment to confidentiality with ABC Vietnam.
RSM Vietnam continues to check the data provided from customers and request for additional information / correction (if any) Receiving detailed information and instructions for the Assistant
Step 1: Input Client's Payroll data into Payroll Template
The salary used to calculate compulsory insurance will be applied as follow:
• The salary used to calculate Social Insurance (SI) & Health Insurance (HI) should not exceed 20 times of the Minimum Basic Wage (currently 20 x VND 1,490,000 = VND 29,800,000)
• The salary used to calculate Unemployment Insurance (UI) should not exceed 20 times of the region-based minimum wage (currently 20 x VND 4,420,000 = VND 88,400,000)
Figure 7 Data base for payroll January 2020 of ABC Vietnam
Figure 8 Payroll of January 2020 of ABC Vietnam
Gross income encompasses all earnings received that are not specifically exempt from taxation under the Internal Revenue Code (IRC) Taxable income refers to the segment of your gross income that is liable for taxation Deductions are then applied to reduce gross taxable income.
Total gross taxable income = Basic salary + Allowances (Mobile phone allowance and Transport allowance)
In addition to their monthly base salary, Vietnamese employees receive mobile phone and transport allowances RSM Vietnam considers these allowances as cash benefits provided by the RO on a monthly basis Since there are no specific policies governing these allowances, they will be included in the employees' taxable income.
• Personal & dependents deductions (According to Point b, Clause 1, Article 9 of Circular 111/2013 / TT-BTC, the Personal Income Tax (PIT) deduction for calculating PIT before July 1, 2020)
Deduction for family circumstance means the amount of money deducted from the taxable income before tax calculation for income from salaries and wages of taxpayers being resident individuals
The level of personal relief applicable to a taxpayer shall be nine million Vietnam Dong (VND 9,000,000) per month;
Starting from the month when the responsibility for a dependent arises, taxpayers are entitled to a family relief deduction of 3.6 million Vietnam Dong (VND 3,600,000) per month for each dependent they care for.
Family deduction conditions for dependents:
Children: natural children, legally adopted children, illegitimate children, stepchildren of the wife, stepchildren of the husband, specifically:
- Children under 18 years old (fully calculated by month)
Example 10: A child of Mr H born on July 25, 2014 is counted as a dependent from July 2014
- Children aged 18 and over are disabled and incapable of working
In Vietnam, children enrolled in universities, colleges, professional high schools, or vocational training programs, including those 18 years and older in general education (such as waiting for college exam results from June to September), are eligible if they have no income or an average monthly income not exceeding 1,000,000 VND from all sources throughout the year.
The taxpayer's spouse satisfies the conditions specified at Point dd, Clause 1, Article 9
Natural parents include a father and mother, while in-laws refer to a father-in-law and mother-in-law Additionally, there are step-parents such as stepfather and stepmother Legal adoptive parents and adoptive parents of taxpayers must meet the criteria outlined in Point dd, Clause 1, Article 9 of Circular 111/2013/TT-BTC.
Other individuals without support that taxpayers are directly nurturing and meeting the conditions specified at Point dd, Clause 1, Article 9 of Circular 111/2013 / TT-BTC include:
- Real brother, sister, sister of the taxpayer
- Grandma grandpa; grandfather grandmother; aunt, uncle, uncle, uncle of the taxpayer
- The taxpayer's nephew includes: children of biological brothers, sisters, and younger siblings
- Other people have to directly nurture others according to the provisions of law
Personal & dependents deductions = Number of dependents*3,600,000 + 9,000,000 (VND)
=> Personal & dependents deductions = 1*3,600,000 + 9,000,000 = 12,600,000 (VND) Nguyen Van B has no dependents
=> Personal & dependents deductions = 0*3,600,000 + 9,000,000 = 9,000,000 (VND) Nguyen Thi C has 1 dependents
=> Personal & dependents deductions = 1*3,600,000 + 9,000,000 = 12,600,000 (VND) Ngo Van D has no dependents
• Salary for Social & Health Insurance (SHI) contribution
The salary used to calculate Social Insurance (SI) & Health Insurance (HI) should not exceed 20 times of the Minimum Basic Wage (currently 20 x VND 1,490,000 = VND 29,800,000)
If the Basic salary is greater than 29,800,000 (20 times of the Minimum Basic Wage) then the Salary for Social & Health Insurance (SHI) contribution will be calculated at 29,800,000
Nguyen Van A and Nguyen Van B have basic salaries of 40,000,000 and 50,000,000, respectively, which are both 29,800,000 higher So, the Salary for Social & Health Insurance (SHI) contribution will be calculated at 29,800,000
In the case of Nguyen Thi C and Ngo Van D, their basic salaries of 14,000,000 and 15,000,000, respectively, fall below the threshold of 29,800,000 As a result, the Salary for Social and Health Insurance (SHI) contributions is determined based on their basic salaries.
• Salary for Unemployment Insurance (UI) contribution
The salary used to calculate Unemployment Insurance (UI) should not exceed 20 times of the region-based minimum wage (currently 20 x VND 4,420,000 = VND 88,400,000)
General minimum salary level from July 2019 1,490,000
Regional minimum salary level for Ho Chi Minh city from January 2020
For Unemployment Insurance (UI) contributions, if the Basic salary falls between 4,420,000 and 88,400,000, which corresponds to the regional minimum wage and its 20-fold amount, the contribution will be calculated based on the Basic salary.
(See figure 8) The basic salary of all employees is higher than 4,420,000 and lower than 88,400,000 so UI is calculated based on Basic salary: Nguyen Van A VND 40,000,000
; Nguyen Van B VND 50,000,000; Nguyen Thi C VND 14,000,000 and Ngo Van D VND 15,000,000
• The compulsory social, health insurance & unemployment insurance (SI, HI, UI) contribution
In addition to salary, employees also receive social welfare benefits, other allowances including social insurance, health insurance, trade union and unemployment insurance
Employee allowances will be incorporated into the company's expenses, with a portion being covered by the enterprise and the remainder either paid by the employees to the State or deducted directly from their payroll.
COMMENTS AND RECOMMENDATIONS
General assessment of payroll outsourcing service process
RSM Vietnam's payroll outsourcing services for ABC Company are designed to deliver optimal results, leveraging years of expertise and established standards The consulting process aims to ensure customer satisfaction and positive outcomes, while also enhancing RSM Vietnam's reputation and market position.
RSM Vietnam implements an efficient accounting system that clearly defines tasks for each accounting section, enhancing employee self-discipline and responsibility This high level of specialization in accounting and tax processes simplifies the verification and comparison of financial data.
RSM Vietnam equips its employees with modern tools essential for their work, ensuring that each individual receives a personal computer and a dedicated workspace Additionally, every department is supplied with comprehensive stationery and equipment, promoting an efficient working environment.
At RSM, tasks are assigned to employees according to their individual strengths and experiences, enhancing time management and work efficiency The team is committed to continuous learning and knowledge accumulation, ensuring that accounting information is processed promptly and effectively This approach to rapid accounting, aligned with established accounting systems, has significantly minimized the risk of data errors.
RSM, a leading provider of accounting, auditing, and tax services, collaborates with a wide range of businesses, including limited liability and joint-stock companies across various industries This diverse experience enables RSM employees to enhance their skills and expertise, ultimately contributing to the firm's strong reputation and high-quality service delivery.
By providing services, RSM Vietnam helps its clients overcome their shortcomings and perfect tasks related to accounting and taxation From there, customers can focus entirely on their core businesses
Despite a significant downturn in global trade and the economy over the past year, Vietnam's demand for accounting, auditing, and consulting services continues to grow steadily, outpacing other industries This increasing demand has led to an inevitable shortage of qualified professionals The overwhelming workload and high-pressure environment resulting from insufficient manpower can lead to avoidable errors in service delivery.
At RSM, the youthful workforce seeks new challenges after gaining essential knowledge and experience, prioritizing career growth over long-term commitments This trend of employee turnover poses challenges for both seasoned and new staff, as the transition period often leads to mistakes due to insufficient handover time Additionally, managers face difficulties in recruiting and training new employees, further complicating the situation.
Therefore, in order to improve and stabilize the personnel situation at RSM Vietnam, I would like to propose the following recommendations:
• RSM Vietnam should have a plan to recruit a few more professional positions that are currently short of manpower or work overloaded to ensure the quality of the job
RSM Vietnam must implement more suitable remuneration policies and enhance facilities and employee policies to improve overall employee quality.
• RSM Should open more professional training sessions to foster knowledge and improve the professionalism of employees so that they can be used well in providing services to customers.
General assessment of the payroll outsourcing service process applicable to ABC
RSM Vietnam's payroll outsourcing service is structured and executed with scientific precision and effectiveness The service delivery process is comprehensive and practice-oriented, adhering to a clear legal framework that guarantees the honest, accurate, and timely provision of accounting information While following global RSM standards, the process is also aligned with Vietnam's legal framework, ensuring compliance with current laws and tax regulations All accounting tasks related to wages and personal income tax are conducted in strict accordance with relevant regulations and legal guidelines.
RSM Vietnam has effectively identified the needs of ABC Company through initial discussions, allowing for tailored recommendations across a reasonable range of services The implementation process is designed to address the specific challenges faced by the client, ensuring the delivery of optimal solutions at each stage of service.
Our experienced team, supported by a strong internal communication system, ensures that service delivery is both swift and efficient We tailor our service processes to meet the unique needs of each customer, providing a flexible approach that enhances satisfaction.
On working papers designed in accordance with the implementation process, easy for customers to follow the situation There is continuous communication between service personnel and customers
Implementing salary accounting services leads to timely updates in payroll information from clients RSM Vietnam efficiently manages these changes, promptly adjusting salary and bonus mechanisms communicated via email.
RSM Vietnam prioritizes data confidentiality and effectively manages customer information, ensuring that vouchers and salary accounting forms are meticulously detailed Their systematic and strict approach to record-keeping enhances organization, while the use of scanned and photographed documents reduces the risk of losing valuable original files.
Information may not be updated in time due to errors or losses from customers led to take a long time to collect documents and data matching
Department staff must take a proactive approach by flexibly adjusting processes and personnel They should actively reach out and seek solutions to swiftly resolve special cases, ensuring that all processes are completed on time and in alignment with the assigned schedule.
To ensure a smooth process and prevent misunderstandings regarding tax matters, employees must regularly update their tax documents due to ongoing changes Delays in addressing special issues that require consultation with the tax authority can significantly impact service timelines.
Managers at RSM Vietnam should consistently update and share current tax documents with their teams to ensure employees are informed about the latest tax amendments Additionally, employees are encouraged to proactively reach out to tax authorities for guidance on special matters, which can help save time and streamline processes.
Utilizing scanned and photocopied vouchers for payroll accounting can mitigate the risk of losing original documents; however, it requires significant time and storage resources Additionally, the quality of scanned images is often unclear, complicating the retrieval of original documents when requested by the Tax Office.
RSM should upgrade or replace copiers to improve image quality as well but minimize errors
In addition, after scanning and photocopying are complete, documents need to be checked thoroughly before archiving to avoid unnecessary risks
RSM should regularly review and organize customer documents and books on a monthly or quarterly basis Additionally, it is important to minimize the reliance on scanned and photocopied vouchers in daily operations This practice will facilitate easier verification and reconciliation by the Tax Authority in the future.
RSM Vietnam frequently experiences issues with its copier system, resulting in subpar ink quality that compromises print quality for reviews and reports This inefficiency contributes to delays in work progress.
RSM Vietnam should upgrade or replace copiers to improve image quality and minimize errors
Although the division of documents, original documents and copies, although systematically and closely classified and arranged, it still takes a lot of time to search due to limited storage space
RSM Vietnam should expand the file storage space in departments to help organize documents and documents are classified more clearly and reasonably, saving time when searching for documents
RSM Vietnam's accounting organization is structured and efficient, yet it faces certain limitations in its accounting processes, particularly in salary accounting While these issues are not severe, addressing them could enhance the overall accounting framework and improve business efficiency at RSM Vietnam.
Payroll outsourcing services offer specialized solutions that enhance efficiency and professionalism in business operations This trend is particularly advantageous for small and medium enterprises, as it significantly reduces paperwork and administrative burdens By leveraging these services, businesses can access expert advice on various operational challenges, ultimately leading to improved performance and stability.
Effective salary management enhances strict oversight and promotes adherence to Party and State labor policies It ensures fair wage distribution, reduces product costs, boosts employee income, and ultimately increases company profits.
Effectively managing employee salary issues fosters trust and confidence, encouraging them to fully commit to the company's growth This approach simplifies the achievement of four essential salary objectives: attracting new talent, retaining valuable employees, motivating staff, and ensuring compliance with legal requirements that benefit the business.