Even though Japan is 1/21 the size of the US and 1/25 of Europe, it has made tremendous inroads as a powerhouse for startups to excel on the global map. The favorable government policies regarding ease of doing business also played a crucial role. However, the structure of Japan's corporate taxes system is way more complicated than in other developed countries with a flourishing startup infrastructure. 

 Therefore, small micro-businesses often feel overwhelmed with managing their payroll in Japan. Fortunately, there is a way out, and that is by hiring an outsourced payroll company. This article will examine why SMEs should outsource their payroll and HR needs and what you can expect from an outsourced payroll service provider.

Time-Saving

The number one reason SMEs need to hire an outsourced payroll company is to save time. Many businesses operate on tight schedules, and handling all their payroll duties can cause them to fall behind on other important tasks. An outsourced Japan payroll company can manage your employees' earnings and benefits, so you don't have to worry about it.

You'll also find that they can provide more accurate information than you could ever get from the government itself. You can trust that your paycheck will be accurate and on time — which matters when you have several employees who depend on you for their livelihoods.

Increased Security

When you hire an outsourced payroll provider, you can be sure that your employees' data remains confidential and secure. This is important because the last thing you want is your employees to worry about their information being compromised. Payroll outsourcing companies have strict policies in place to protect their employee's data and make sure that it is not misused or leaked.

 Maintain Employer Compliance

If you have employees who work from home or telecommute, outsourcing their payroll services is a must so that the company files accurate reports with the National Tax Agency every quarter (or year depending on your tax return cycle).

  It is also crucial for an employer to maintain compliance with state unemployment insurance laws and tax requirements, such as withholding taxes from wages paid to employees over a certain amount each month or quarter.

Improve Compliance & Reporting 

Lastly, between wages, filing deadlines, and hour laws, compliance with the payroll requirements is a head-spinner. Thus,  you need a dedicated team to ensure that you comply with all the rules & regulations set by the Japanese government and stay clear of costly fines. In addition, an outsourced payroll service provider will keep track of payroll, right down to every penny, and give regular reports on where your business is headed. This will help you in your decision-making process for the company's bright prospects ahead. 

In The End…

There are many benefits that SME owners can gain from outsourcing payroll services to the best payroll company. It is perfectly understandable why you might be tempted to handle your payroll without an outsourced service. However, after reading this article, I hope that you will realize how vital it is for you to find a good service provider.