Payroll maquila is a practice that has become fashionable in Mexico in recent years and this is mainly related to changes in regulation and specifically to the abolition of outsourcing.
Another important aspect to consider is the complexity involved in managing payroll. In fact, it is one of the most complex tasks for companies.
For this reason, the maquila and payroll administration is a high value-added service to facilitate companies' operations.
Therefore, today we are going to find out what payroll outsourcing is, what it is used for and what advantages it could offer your company.
In addition, we will give you some criteria to consider when choosing a supplier.
Is this kind of service for your business? Find out below.
What does maquila payroll mean?
Payroll maquila is a service through which an organization performs on behalf of a company that hires it, the payroll of its employees among other fiscal aspects.
Payroll payroll can include:
- Register and deregister workers with the Mexican Social Security Institute (lMSS).
- The calculation of wages and salaries.
- Tax management.
- Employer obligations and the different benefits established by law, such as social security, Christmas bonus, vacation or vacation premium.
- Management of specific benefits granted by each company.
- In the case of Zentric, you are guaranteed not to receive fines from the authorities.
However, all payments are the responsibility of the company contracting the service.
In this way, a contract for payroll management services is entered into between the organization and the payroll provider.
However, it is worth clarifying that the information belongs 100% to the organization that contracts this service.
And at this point you are probably wondering:
Is this subcontracting and is it not prohibited in Mexico?
Here are the details.
What is the difference between outsourcing and Maquila Payroll?
This is a very important point of differentiation!
Payroll accounting is a service and, as such, it is provided by a specialized company.
In this sense, the maquila payroll is governed based on what is allowed by the new reforms to the Federal Labor Law.
Outsourcing or subcontracting is very different since the legal framework establishes that subcontracting is a process by which an organization transfers the responsibility of the employer to manage certain specialized tasks such as payroll management.
In this case, the outsourcing company acts as the employer.
In accordance with the latest labor law reform, the outsourcing of personnel is prohibited in Mexico .
It is important to highlight that according to the Federal Labor Law - article 13 - describes:
"Outsourcing of specialized services is allowed."
Emphasizing that these services should not be part of the corporate purpose or the main economic activity of the company that contracts them.
This clearly applies to payroll outsourcing, as it is a specialized service that is not related to a company's core business.
On the contrary, it is developed on the basis of one of the processes that are not considered to be the main corporate purpose of most companies in Mexico.
In a very concrete way, the difference is that in Maquila payroll, the company remains the employer responsible for the workers, while outsourcing means the subcontracting or outsourcing of workers, an activity that is punishable by law.
What are the main advantages of payroll outsourcing?
There are three main advantages:
Zero Fines Guarantee
With the guarantee policy offered by Zentric and Worky, you shield your company from receiving fines from the SAT or IMSS.
Savings
You do not need to have a specialized person or equipment, this can be very expensive.
Especially for companies with less than 100 employees.
In addition to hiring a team, there are different costs associated with the training and education that these personnel frequently require.
That is why payroll accounting can mean significant savings in fines and headcount.
Approach
Having a team managing payroll can translate into wasted time and focus.
Directing all your efforts to what truly impacts your organization brings extraordinary results.
Hiring a maquila service means that you will have a specialized team to make the payroll of your employees.
How to choose a payroll provider?
The process of selecting a payroll administration specialist is a complex task.
Most importantly, consider that there are many options but few that truly fit your business objectives.
Take into account the needs and objectives of your company and make sure that the supplier can meet them.
Some of the characteristics you should look for when choosing a supplier:
Trust
It is important to research the reputation of your supplier. Ask for references and make sure they provide services to companies whose business objectives are similar to yours.
Ask how their experience has been and if they have had any fines or losses associated with the service.
Experience
It is essential that this supplier has many years of experience as a maquiladora and extensive knowledge of legal and tax matters.
Technology
In Mexico there are thousands of accounting firms with payroll services.
The big difference is produced by technology, it is essential that this firm has the development of technology that helps you reduce errors with the right systems, plus there are applications that represent a huge added value because in addition to the service of payroll management, they provide you with human resources software that can help you recruit, develop and retain your employees.
Warranty
Make sure that under contract, this supplier gives you the certainty to cover any penalties arising from errors that they may generate.
What are the main benefits of adopting technology in the payroll and payroll management process?
Thanks to technology, payroll and human resources personnel will be able to adopt best practices in reducing manual tasks and automating non-payroll processes.
This will bring enormous benefits in the productivity and happiness of your staff, not only in the Human Resources area but at all levels.
Here are some of the benefits:
Better decision making
An organization that does not have the data is often uninformed and therefore will make poor decisions, resulting in lost productivity and poor management.
With a Payroll and Human Resources system you will be able to automate processes and record specific information on various topics that will allow you to make better decisions.
In addition, it will allow you to have access to each employee's information at any time and from anywhere.
Benefits for your employees.
Software like Worky offers your employees a wide range of benefits that will ultimately have a positive effect on their productivity and profitability.
There are different types of benefits, including discounts at movies, restaurants, gyms and other entertainment establishments.
Without having to make a larger investment, you will be able to offer better benefits and have more tools to retain your staff in the long term.
Best Internal Communication
A Human Resources Software or a Human Resources ERP (Enterprise Resource Planning) facilitates, among other things, the review and registration of files, in addition to ordering the information so that it can be used more efficiently, which will benefit internal communication.
In other words, it will help you to better manage the way in which your collaborators relate to each other, thanks to the various facilities it offers; for example, forming virtual work groups or accessing important information from a cell phone or an online platform.
Security
Likewise, this software must offer security, as it stores sensitive information. Zentric and Worky keep all your information encrypted and under the most ambitious security protocols in the industry.
In summary, Maquila Payroll has great benefits for companies and its contracting is allowed by law, while outsourcing is not.
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