Outsourced Payroll Services in Dubai, Abu Dhabi & UAE

For any newly founded company, managing employee payroll can be a big challenge. This becomes more pronounced when the founders and senior leadership teams are new to the country and are unfamiliar with the prevalent laws, customs and practices related to wages, and approved systems.

When the focus of organisations has to be maintained at building the business and delivering growth, payroll management can prove to be an inefficient function to have in-house. Even if the necessary resources are internally available, maintenance of confidentiality is always a challenge.

Working with payroll outsourcing companies in the UAE not only addresses all these issues but can also accomplish the task at a cost much lower than setting up a payroll department in-house. At the same time, this ensures that local knowledge of laws, customs and practices that the service provider brings, works in the best of your interests.

We provide professional and timely payroll solutions in Dubai, Abu Dhabi and across the UAE, maintaining complete confidentiality, accuracy and detailed reporting. The entire payroll cycle including preparation of monthly earnings, deductions, gratuity, pension funds, payslips, loading online instructions (on a bank’s website), delivery of payslips to the employees/company representative, and reporting are professionally managed. PKF UAE uses a Cloud-based HR and payroll software that provides access to HR and payroll data of employees and HR personnel of the client.

MS Excel-based reports can be generated for payroll, and these can be integrated/imported into the accounting records of the company.

Frequently asked questions on outsourced HR & payroll

1. Why should I outsource HR & payroll service to an independent firm?

HR & payroll is a sensitive function. Welfare of the employees directly impact a business. Maintaining payroll confidentiality, timely payment of salaries, maintenance of confidential documents and information, compliance to changing labour laws and regulations are some of the critical factors that impact HR & payroll in any organisation. A specialised firm is more likely to meet all the above objectives than an in-house generalist.

2. I have only a few employees on my payroll? Can I outsource the HR and payroll function for a small number of employees?

Absolutely. There is no minimum number of employees needed to outsource the service. We will charge a monthly fee based on the number of employees on the Company’s payroll.

3. I already have a qualified accountant working for me. Can you assist him/her to reduce his/her workload?

We are ideally placed to take over routine HR & payroll matters from the accountant leaving him/her free to undertake more valued added tasks to the benefit of the Company. We will submit a journal entry at the end of the month for incorporation in the accounting records of the Company. It is a win-win for all parties.

4. What services are typically included in the outsourced HR & payroll service?

We provide end to end HR & payroll services. Under the HR services we manage all HR related records relating to the employees, including date of joining, increments, promotions, dependents, details of remuneration, entitlements, dependents, visa and passport validity and other such details. Under the payroll function, we will calculate monthly salaries, variance over previous month, overtime, advances, deductions, gratuity and pension provisions, Wage Protection System(WPS) compliant file generation and even load the amounts to be paid on the portal of the Company’s bank account. Monthly reports will be submitted for both HR and payroll activities. You can choose the extent to which our services are required and our fees will be tailored accordingly.

5. Can I opt only for payroll services and retain control of the HR service in-house?

The service is completely customisable, and we will undertake only those activities you are comfortable with. We will tailor our deliverables accordingly to your requirements. Our fees are based on the number of employees and the activities you would like us to undertake under the payroll service.

6. I would like to maintain confidentiality of the payroll for many reasons and would not like even my inhouse accountant to know the salary details. Can you maintain the confidentiality?

This is a common request and often the main reason why HR & payroll activity is outsourced. We can certainly maintain the confidentiality. How do we do it? We will process the payroll, communicate that to you and on receiving the approval, prepare a consolidated sheet for transferring funds to our bank account. We pay the employees from our bank account and send a summarised journal entry to the accountant for incorporation in the accounting records. We will also calculate the gratuity payments for an employee who is leaving, retiring or terminated so that payroll confidentiality continues to be maintained. As the payment is going out of our bank account, no break-up is available to the accountant or anyone else except you.

7. Will PKF maintain my HR and payroll records manually or using a software?

We use a cloud-based HR & payroll software to maintain the HR and payroll records and generate related reports. Our fee includes the use of the software and we can grant user access to the HR department to view various reports and employees to view their payslips, generate their own employment letters for submission to banks and financial institutions, apply for leave and other day to day functionalities. Once set up by us the HR department and employees can view the relevant reports with ease at their own time and convenience.

8. Will you be able to transfer salaries and emoluments using PKF’s own bank account?

If the Company does not have a local bank account and would like to transfer salaries to the bank account of the employees to comply with WPS requirements, PKF’s bank account can be used to transfer the salaries. PKF will receive the funds in its bank account in the UAE and make payment to the employees to comply with labour rules and regulations.

9. Will PKF be able to transfer pension contributions for Gulf Co-operative Council (GCC) nationals to the authorised bodies each month?

If the Company and the GCC nationals have been registered with the pension authority, we can calculate the pension contribution of the employer and the employee and transfer the funds to the pension authority each month from the Company’s own bank account or ours if this service is availed.

10. I have GCC nationals on my payroll. Will you able to assist with the registration of the Company and the GCC nationals with the relevant pension authorities?

Indeed, we will be pleased to assist you with the registration of the Company and the GCC nationals with the relevant pension authorities for submission of monthly employer and employee contributions. We will submit a list of required documents required for the registration. A one-time fee for the registration is due.

11. My company operates in 4 countries in the GCC. Are you able to provide HR & payroll services in the GCC countries?

PKF as a network operates in more than 150 countries and is ideally placed to provide HR and payroll service in the GCC. The centralised payroll will be maintained and generated from the UAE and services of the local offices in the GCC countries will be availed on a need basis. This ensures that you have a onepoint contact and yet derive the benefit of local experience and expertise.

12. Is PKF able to maintain a multi-currency payroll?

Yes, we can maintain a multicurrency payroll by defining the base currency

13. How much time do you need to set up the HR and payroll function if I take a decision to outsource it?

Depending on the number of employees, activities that you want us to undertake, complexity in the payroll and other such factors, we need 10 working days to set up the software and incorporate the necessary details. However, if the number of employees is not significant, the mobilisation period could be much lesser.

14. Will you liaise with the statutory auditors at the end of the year and clarify any that they may have on payroll matters?

Yes, we will liaise with the auditors on all matters related to the payroll activity that we have undertaken and in the purview of our scope of work.

15. Are you able to provide references from your existing clients before I avail the outsourced HR & payroll service?

Nothing will please us more. We will share the contact details or two or more clients to ascertain the quality, timeliness and the professionalism of our services.

16. Are you able to offer a package where I can outsource my accounting, HR, payroll, and VAT functions?

Indeed, we can offer economies of scale when we undertake more work for you as it gives us an opportunity to spread our cost to mutual benefit. It also has the advantages of you having to deal with only one firm and allocating responsibility to a single entity

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