What are the best payroll services?

Along with all other responsibilities, one of the important duties of an employer is to make sure that their employees are being paid on time. Which might seem like a simple task, but it’s actually influenced by a lot of factors, including the legal obligations. What takes the hassle out is a professional payroll system, which can be in-house or outsourced. Hence, it is critical to understand the methodology of payroll systems, their cost, software needs, and a competitive team to look after the payroll matters. Many businesses find it hard to keep up with the internal payroll service; therefore, they pick up the alternative, which is outsourcing the payroll services to some of the best accounting firms. In KSA, the organizations also heavily rely on skilled payroll outsourced firms rather than managing payroll in-house because of the strict regulatory changes that impact the payroll systems directly. This article covers the best payroll service providers in KSA, along with one of the best players: SS &CO, which stands out as a renowned and well-trusted payroll provider for KSA businesses.

Why Are Payroll Services Essential?

When a business pays its employees on time, it shows the stability of their company and their commitment to keeping their employees satisfied. Unorganized systems not just lead to stress but also compliance pressures. This makes the employees no longer trust employer, and they either lose their motivation to work or look for a better option. Employees operate better when payroll is processed with precision and punctuality.

Payroll systems should be smart, error-free, and automated to keep the services running smoothly, and payroll service providers come up with all these facilities. They are not just equipped with the best payroll software but also experts who oversee every minor payroll detail, including bonuses, deductions, overtime payments, and compliance requirements.

From the compliance point of view, payroll services keep the businesses away from the hefty penalties that result in capital damages. Every country imposes strict local labor law regulations that include the minimum wage requirements, tax deductions, overtime compensation, and benefits. It is mandatory to comply with these labor laws to prevent any legal action. Therefore, payroll services are also highly important to keep businesses compliant through understanding every local legal obligation.

Why do businesses in KSA need Payroll Services?

In KSA, payroll management is not just a monthly task of wage distribution but is significantly affected by compliance with labor laws, financial precision, and the country’s aim to digitally evolve the initiatives. The prominent legal systems that impact the payroll services include:

• The Wage Protection System (WPS): The WPS system makes it mandatory for businesses to make their payments digitally through the listed Saudi Banks and report them to the MHRSD every month.
• GOSI Contributions: Businesses must offer a social insurance to all Saudi National employees and some of the eligible foreign employees
• End of Service Benefits: EOSB encompasses the legal gratuity needs for employees under the Saudi Labor Law.
• The Nitaqat Plan: The Saudization (Nitaqat) plan demands that companies hire a certain percentage of Saudi Employees which also impacts the payroll systems
• Allowances and Exemptions: The complete payroll plan holds the deductions of housing, transport, and other allowances and other applicable deductions.

It is highly important that employers not just keep up with the statutory needs but also meet all the payroll clauses mentioned in the employment contract. If the businesses fail to comply with these policies, they are exposed to

• Financial consequences
• Rejection of Licenses
• Delay in visa and Iqama issuance
• Legal implications

These risks can be highly detrimental to business credibility, routine operations, and capital standing. The best possibility is to onboard an outsourced payroll services provider to stay guarded from any such challenges and to operate legally safe and sound in KSA.

Leading Payroll Service Providers in Saudi Arabia

As KSA is moving towards a more modernized and digitalized system, the options for payroll services providers have also expanded, which makes it hard to sometimes pick the right one. Although it totally depends on your needs, budgets, and scope, some of the top choices preferred by businesses in KSA are listed below:

1.     Sidra Salman &CO

SSCOKSA, in a short span of time as emerged as one of the favorite options for many local and global businesses as it offers assistance to not just local companies but is also well familiar with the global payroll legal needs. SS&CO is not just a traditional payroll service, but a modern day shaped one of the best accounting firms that offers digital solutions which have become a necessity in today’s world. What differentiates it from others? Let’s see:

• Years of experience in the Saudi Labor Law, WPS, Saudization, and GOSI
• Payroll services are delivered under complete professional supervision
• Implementation of accounting, zakat, taxes, and other legal demands in payroll computation
• Solid internal control and documentation that is fully ready for audits
• Custom-made plans according to the employees’ volume and business scale

SS&CO is highly recommended for its emphasis on precision, regulatory stability, and brand name preservation.

2.     BDO Dr. Mohamed Al-Amri & Co

BDO offers a wide variety of services, including payroll management as per the Saudi legal standards. Its payroll services are built on global practices with standardized control models. BDO is highly reputable for handling payroll services of large-scale enterprises and multi-jurisdictional firms.

3.     Mercans

Mercan is one of the leading international payroll services providers working in Saudi Arabia. It facilitates both local and international businesses. It is also commonly picked by multinational companies operating payroll in various countries. Businesses that emphasize global practices more than local standards choose Mercans for their internal market expertise.

4.     Sundus Global

Sundus Global provides top-notch payroll services along with HR solutions. They are mainly recommended for project-based companies or those with a large number of outsourced teams. They offer payroll and manpower solutions combined for better transparency and experience.

5.     NADIA Global

NADIA Global is a regional Payroll service provider that expands its services across the GCC market. If highly focused on local law compliance and well-suited for regional companies and SMEs.

What are the Challenges Linked to Payroll Services?

Just like every other business task, payroll management can also be highly intricate and result in severe damage if not handled well. The main stumbling blocks that businesses face along the way to payroll management include:

• Precision in Payroll Calculations: Payroll calculations demand expert oversight since any small mistake or incorrect computation exposes them to legal questioning. Precision is mostly compromised due to manual systems
• Security of Confidential Data: The payroll data comprises sensitive employees’ information covering their numbers, ID data, banking details, etc. This information needs strong security controls to protect it from any breaches.
• Implementation with other Systems: Payroll systems need to link with other systems in real time, like HR, Finance, and IT. For effortless payroll management, this is crucial, but it demands efficient technological solutions
• Compliance with Changing Labor Laws: The KSA legal systems in on the way to transformation, which is why the laws change quite frequently, and the penalties of non-compliance are also high. Businesses must keep updated with the most recent reforms and train their teams accordingly, which can be exhausting

What should you look for in a payroll services provider?

When you are searching for your payroll service provider, you must make sure that they keep you protected from all the challenges by implementing the best strategies. The most critical areas that you should consider are:

• Their familiarity with local and global practices specially if your company is operating in different regions
• Their team’s ability to handle the bulk of work and offer proficiency, especially in times when teams are expanding
• They must offer payroll services that are fully compliant with the KSA local laws to protect from fines and legal queries
• Must be equipped with contemporary technological tools that seamlessly integrate with other business systems and offer complete automation and real-time data visibility
• Strong cybersecurity controls, such as multi-factor authentication and encryption tools, to keep the sensitive employees’ information safeguarded.
• They shall present round-the-clock dedicated support to their customers with prompt service delivery and communication

Why SS&CO Continues to Stand Out

While the Saudi Market is full of outstanding global and regional players, SS&CO is still a top choice for many businesses due to its familiarity with local regulations and international-level service quality. Through years of experience, SS&CO has gained the trust of many CFOs, owners, and even global businesses. It is a top pick for many clients since it provides:

• Review and Verification of Payroll Data
• Through compliance gap analysis
• Going live with managed payroll cycles
• Continuous support and compliance guidance
• Lower disruption and complete data safety

SS&CO makes it seamless to manage your payroll, IT, finance, and HR all under one unified platform. No matter if you are looking to scale up your payroll services or need assistance with the onboard team’s payroll management, SS&CO is here to offer unmatched services that are approved by the clients all around the KSA and the GCC market.