18 Jan The Proactive Management Of Wage Labor Compliance Procedure 2020
Labor relationship includes the relationship between employers and employees, the relationship between employers and tax department, insurance department, and other competent state agencies. This is not only the requirement for proper management but also the tools to support internal governance, risk management. VIVA would like to share the proactive management of wage labor compliance procedures to support HR management in particular and business management in general.
Some notices on HR management and proactive management of wage labor compliance procedures:
- Labor cost is not only salary – bonus – benefits but also deductions amount, relevant to social insurance, medical insurance, Personal Income Tax, Business Income Tax, and other administrative procedure as well as other obligations of employers.
- For example, when carrying out the procedure for granting ABTC card for management level, competent state agencies will review the declaration and paying insurance, if the enterprise pays late or lacking 100.00 VND, they will be considered as not comply procedure, regardless of whether they paid 10 million or 100 million each month…
- During the operation process, an enterprise may face with the situation as employee violate disciplinary action, labor dispute, labor accident…
- In the near future, Vietnam will have an enterprise credit center, which will integrate information on the tax debt, insurance debt, bank debt… to provide independent information for partners, if the enterprise unable to manage the debt balance account 100.000 VND to pay insurance, it may affect the credit index of an enterprise.
Based on strong professional knowledge and experience in the environment and local business culture, we hope to help our customer comply properly – fully – optimize administration requirements of relation labor, contribute to developing business culture, protecting business interests, optimizing business results for each year and throughout the years to come.
Please note that 06 important tasks regard wage labor compliance procedures below need to be completed within December 2020
- Collect and complete each employee’s profile – Make and update employee management books according to regulations.
- Prepare new labor contracts, labor contract appendices, appointment letters … for employees who have changes in income – welfare – job position. Update terms of welfare, allowance, information privacy, conflict of interest …
- Carry out procedures for personal income tax finalization for each employee which was entitled to authorize the settlement.
- Carry out procedures for issuing PIT withholding receipts for employees who have worked for less than 12 months, or are subject to direct finalization of 2018 PIT with the tax authorities.
- Update regional minimum wage and deduction – declare insurance under new regulations.
- For foreign workers, it is necessary to check carefully, distinguish between residents and non-residents, if they have global income or not, if they are related to the countries that have signed the agreement to avoid double taxation times with Vietnam, gathering letters confirming income from the parent company, tax receipts from abroad …
Besides, please also note for 04 other important procedures that need to have complied
- Complete and promulgate Rules – labor discipline, collective labor agreement.
- Complete and issue remuneration regulations.
- Complete – issue – register and apply the salary scale system.
- Set up – storage the entire system of compliance record on labor relations according to standards and systems, including Employee Profile – Labor Contract – Salary Profile – Insurance Profile – Personal Income Tax – Records of termination of labor relations – Internal policy regulations
With our full package service of HR management, following customers’ expectation and demand, VIVA will assign the HR Team who has experience in management – implementation and comprehensive guarantee for any arising issue relating to wage labor compliance procedures.
VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.
Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.