Outsourcing services are more and more popular in Myanmar because the employers are realizing the fact that they are able to focus more on their core business by outsourcing the time-consuming tasks such as payroll and contracting matters. In this blog we will cover the questions that you should ask when outsourcing payroll. This will enable you to choose the right kind of vendor in terms of the service, capabilities and reputation as well as the reputation in the market.
Are they compliant with the law?
This should be the first question and obviously being compliant with the country’s law is very important. In Myanmar, the vendor needs to understand and master the laws related to labour, SSB and Tax so that they are able to consult with the client well with the right and updated information to make the right decisions when necessary.
Are they strict on confidentiality?
Unlike other countries, it is common in Myanmar that people talk openly about salary to each other as well as about other people’s salaries. However, it is the responsibility of the vendor to keep the client’s data is kept highly confidential. It is also good to know how many people from the vendor will have the access to the payroll and employees’ data. On top of this, how the vendor has handled possible information breaches and what controls they have in place to avoid this.
Do they offer quick responses to inquiries?
Employee payroll is very sensitive and when there is a question, employees want to get the right answers, right away. Questions such as “why did I pay more tax this month?” or “why this amount is missing?” are extremely important to the employee and they need a response quickly.. It is important to know that employees will be able to get responses quickly to questions like these to give them peace of mind.
Are they financially strong?
There may be a situation from the client that the payment has been made but due to some unforeseen conditions, the payment may be late to receive by the vendor. In this case, the vendor may need to pay out the salaries to the employees on the payday by bearing the amount until the fund is received. Ensuring the employees get their salary on time is extremely important but many vendors are not able to cover these costs.
How many international clients they are working with?
Most international companies have very strict compliance and risk checklists for their outsourcing vendors, and they must meet the requirements in order to be selected. Also the experience of being an ICP (In Country Partner) with the other international vendors is also a great sign because it means they have standardized processes and procedures.
Of course there are many other questions you will want to ask a potential payroll vendor, however these questions are key to ensure you are able to select the most reliable vendor for your business.