More and more Estonian companies have ceased to perform their own payroll functions but rather outsource it to a service provider. The reason for this is the fact that payroll takes a lot of time and requires use of updated software and it also takes a knowledge of frequently changing laws.
For employees, of course, it’s important that earnings are paid out to them on the agreed date and in the right amount. Thus, payroll must always be performed at the right time and in correct fashion, regardless of whether the payroll person is undergoing training, on holiday or leave or even ill.
One argument cited by business people in favour of outsourcing is that it optimises the internal workload and saves on costs. Selecting a service provider gives assurance that even if the employee is on leave or ill, salaries will be paid out correctly on time. At Grant Thornton Baltic, we dedicate at least two accountants to every client to ensure timely payroll in extenuating circumstances as well. Our team also advises clients on more complicate payroll and accounting issues.
Security is of the utmost importance
The secure handling of personal data is important in payroll. The payroll software used by Grant Thornton Baltic ensures the principle of segregation of duties and we issue encrypted payroll slips to our payroll clients’ employees. All this gives assurance that the employees’ personal data and salary information is handled pursuant to the requirements of the EU’s GPDR and that they are protected in a secure manner.
According to the personnel director of Henkel Balti OÜ, Age Razumova, they decided to outsource payroll because confidentiality is a critical consideration in this field and Grant Thornton Baltic is able to perform payroll pursuant to the Henkel international group’s security requirements.
Always up to date
The change in the calculation of the basic exemption at the start of this year went painlessly for our payroll clients thanks to the company’s preventive action plan and outreach. Grant Thornton Baltic also provided advisory services to one of the largest translation companies in Estonia, Luisa Translation Agency, a long-time partner.
“For Luisa, quality and competence are important both in the company’s main area of activity, translations, and support services. Our cooperation with Grant Thornton has helped us to optimise our internal work so that quality of work and the necessary financial knowledge are always ensured,” says Luisa Tõlkebüroo OÜ management board member Kristiina Püttsepp.
According to Grant Thornton Baltic’s partner Anastasia Borovaja, every change in legislation has resulted in many costly changes in payroll systems. “Companies can sometimes spend thousands of euros per year solely on payroll software. When a company outsources service, however, it doesn’t have to spend time or money on constant updates as the service provider is responsible for it,” adds Borovaja.
Read more on Grant Thornton Baltic’s payroll service.