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HR and payroll outsourcing is increasingly popular. How does it work? What if a Social Security or Labour Inspection comes up? We talk to an expert from ACS Accounting & Corporate Services

More and more companies decide to outsource human resources and payroll, because it can be cheaper and more effective – admits ACS Accounting & Corporate Services expert Karolina Kot Ciosek. As she adds, it is a good solution not only for new companies, but also for already developed businesses. We are talking, among others, about how such outsourcing looks like in practice and what happens in case of ZUS or National Labour Inspectorate inspection? 

Have you already managed to cope with the challenges of the Polish order? Is it even more difficult for external specialists in accounting and human resources than for those working inside companies? 

We will feel the effects of these regulations for a long time. Changes in regulations do not take into account many factors that appear in the calculation of salaries in individual months throughout the year, so various doubts will persist over the next 12 months.

However, as to whether it is more difficult for HR and accounting specialists who deal with individual companies and enterprises in the form of outsourcing, I must admit that it is rather easier for us. As external experts who work with many companies, we have a very cross-sectional view and different experiences. Of course, I am not saying that internal staff are not well prepared, it is just that our know-how is built on a wide range of experience from working with many companies.

Polish governance is also a big communication challenge with these many companies. It is probably not easier here. 

Indeed, we have conducted many talks and correspondence with company managers. We also contacted their employees. We are the first link between the offices, tax administration bodies and the client. We structure the most important information in the form of tables, newsletters and summaries.

Outsourcing of human resources and payroll is a good solution for every company and at every stage of development is it no longer profitable?

Outsourcing of human resources and payroll is a good solution for every company and at every stage of development. Most often it is used by companies with foreign capital, which have their parent company outside Poland and want to expand their activity also in Poland. The outsourcing company then helps to go through the whole process of registration and setting up the business in Poland.

HR and payroll outsourcing is also a good solution for domestic companies and enterprises. We cooperate with companies that are just starting up, but we also have clients who run already developed businesses and decide to change their structure and outsource their HR and payroll services.

Especially in recent years, the tendency to outsource human resources and payroll has grown. Previously, such solutions were used mainly in accounting.

Why has such outsourcing developed in recent years? 

It comes from a change in a certain consciousness. We left the economy of the 1990s, where HR and payroll teams were extensive. Companies started to analyze costs. Also the high qualifications of the staff of outsourcing companies were appreciated. We, as experts who work with many companies from different industries, have to face a larger range of challenges and problems than internal company departments. So we are flexible and have the ability to provide many services in a short time and with a changed cost structure.

But outsourcing like this also means giving away sensitive data. 

Yes, and they are of course well protected. Customers always have remote access to this data. We have file sharing systems that provide parallel access and the possibility of joint modification in real time. On the other hand, some clients prefer to be informed only about the result of the work, i.e. they already receive specific payroll reports, HR reports and others.

The issue of employees and salaries also involves inspections by ZUS and the State Labour Inspection. How does it look like if everything is conducted by an outsourcing company? 

At the moment of receiving a notice of initiation of control proceedings, we organize the takeover of these proceedings to our office, notifying the relevant institution about it. If the company has most of the data at home and wants the control to be carried out there, then of course we also organize the transfer of our documentation. Everything after that depends on how a given inspector wants to collect these data and check them.

Often the inspection conducted directly with us is more effective. There is always a dedicated employee for a given company who is in charge of its affairs, so he or she can efficiently provide the authorities with all information and answer questions. In this case, we keep the client informed about the progress of the inspection.

Going back to the trend you mentioned, about the development of HR and payroll outsourcing, the progressive multiplicity of regulations will further strengthen this trend? 

HR and payroll outsourcing will definitely continue to develop, and companies will look for such services. There will be a growing emphasis on remote access to information, data models and real-time collaboration on that data.

What may change is the core scope of our work. A variety of regulations may lead companies to rely more on B2B contracts instead of employment contracts. With such contracts, the current settlement of Social Security or salaries is no longer directly on the side of the company commissioning the work. There are other issues to manage and perhaps we will have to specialize in them.

 

The article originally appeared on the website of Legal Business Polska.

Outsourcing of human resources and payroll is becoming more and more popular. How does it work? What if there is an inspection of Social Security and Labour Inspectorate? We talk with an expert from ACS Accounting & Corporate Services.