Specifics of payroll outsourcing in Russia
Payroll in Russia combines various business aspects related to labor, social security and income tax laws, as well as to the recent addition of personal data law.
Payroll is also, of course, a highly sensitive and individual question so payroll data need to be handled especially carefully.
What are the specifics of payroll in Russia?
Payroll in Russia has certain specifics that companies operating in Russia need to know about.
- Payroll and other compensations payable to employees are provided for in employment contracts, and particular payroll instances such as, for example, sick leave, vacation, business trip are calculated according to specific rules provided by law. Additionally, each particular payroll instance must always be documented.
- Salary in Russia must be paid at least twice a month per schedule specified in employment contracts and corporate policies.
- Employers in Russia are responsible for mandatory social contributions to state social funds: Pension Fund, Social Fund and Medical Insurance Fund. Contribution calculation and payments should be made monthly, while statutory reporting should be filed quarterly. Employers must also every month deduct personal income tax from the salaries and other compensations payable to their employees. They must also remit such deductions to state authorities. This means that employers in Russia are responsible for the payment of income tax and social contributions, and employee receive only a net salary.
Employers must also abide by other requirements as they are subject to inspections from the state social funds, tax authorities, and the State Labor Inspection. It is therefore very important that payroll processes be well-organized.
What benefits do employers get from outsourcing payroll?
When companies choose to outsource payroll, they get:
- Highest confidentiality of payroll data;
- Automated processing (data input, output, distribution of pay-slips to employees);
- Clear and friendly answers to employees who raise questions about pay-slips;
- Reliable reporting to management and state authorities;
- Professional communication with external inspectors on behalf of the company;
- An IT- team provided by the outsourcing company to set up payroll and reporting;
- Labor law lawyers provided by the outsourcing company to handle HR issues;
- Bilingual documentation; pay-slips, payroll reports, as well as ad English-speaking payroll specialist for expatriates
- Outsourcing provider guarantees compensation if his error happens. There is no such guarantee and no compensations for errors when payroll is done in-house.
How can Accountor help?
Our payroll outsourcing services are provided by highly professional HRA, accounting, IT, and tax experts who work in close collaboration with our experienced labor lawyers. We have been providing payroll services to international companies since 1992.
Accountor is always at your disposal so feel free to call us now.