Vietnam Local Employee Payroll Outsourcing and PIT Calculation

Service Scope:

• Design salary structure, including base salary, allowances, bonus, commission, overtime, subsidies and benefits

• Calculate monthly payroll based on attendance, overtime, leave, sick leave, probation, resignation settlement and deductions

• Calculate Personal Income Tax (PIT) based on tax residency, progressive tax rates, personal deduction, dependent deduction, compulsory insurance and taxable benefits

• Support monthly/quarterly PIT filing and annual PIT finalization

• Arrange salary payment through local Vietnamese banks

• Coordinate expatriate payroll issues for Chinese assignees, including housing, travel allowance, global income and treaty considerations

• Set up payroll approval, payment authorization, payslip delivery, personal data protection and record retention

• Provide payroll cost, PIT, insurance, overtime and resignation cost reports

Process:

1. Collect employee list, labor contracts, salary structure, bank accounts and attendance rules.

2. Confirm tax residency, dependent deduction, insurance status and taxable benefits.

3. Collect monthly attendance, overtime, leave, bonus, allowance and deduction data.

4. Calculate gross salary, insurance deductions, PIT, net salary and employer cost.

5. Obtain company approval for payroll and tax/insurance data.

6. Execute salary payment and collect bank payment records.

7. Submit PIT filing and payment.

8. Archive payslips, filing receipts, payment records and annual finalization documents.