Managing personal income tax (PIT) is crucial in payroll calculations. Personnel with expertise must ensure accurate processing of taxes according to legal procedures. However, it is inevitable that mistakes may occur during the process. Hence, terra Payroll provides a service that combines personal income tax finalization with payroll and social insurance computations. This helps manage tax obligations, make sure they are accurate and compliant with legal regulations.
Reasons why businesses look for PIT finalization services
Finalizing PIT is a complex process that needs correctness and strict compliance with legal regulations. Nowadays, PIT finalization apps are becoming popular in the business world to keep down mistakes in the taxation process. Moreover, the cost of PIT finalization service is also suitable for businesses, especially SMEs. Here are some common mistakes include:
Mistakes in PIT calculations
Businesses sometimes have problems with updating employee income data accurately and on time during payroll management. This will affect the to-come steps of the payroll calculation process.
In addition to the basic salary, businesses also need to calculate the PIT taking off. Using the wrong tax rate or deductions can create problems and may result in legal problems.
Difficulties in adhere to with legal regulations
The tax regulations are all the time changing and updating, requiring payroll personnel to stay updated with timely information. If businesses fail to meet tax filing deadlines or submit tax returns late, they may face penalties.
The tax authority will enforce penalties for late tax payments or submissions that exceed 90 days past the deadline. These penalties can range from 1 to 3 times the amount of evaded taxes, as specified by law.
Furthermore, if a business fails to file tax returns, they may face fines ranging from 8,000,000 VND to 15,000,000 VND. This can impact the general budget of the business and even decrease the company's reputation in the market.
Management of employee data is not in sync
To exactly finalize PIT, businesses need an effective employee information management system. The lack of valid records and documents regarding employee income can lead to serious legal problems.
Businesses must accurately track tax exemptions and deductions for employees, like family and social insurance deductions. Mistakes in this process can impact employees' salaries during the finalization of their PIT.
Have difficulties in determining taxable income for each employee
Businesses having problems with personal income tax. They have trouble determining which income is taxable. They also find it challenging to divide salary and wages, bonuses, and allowances. Additionally, calculating taxes on bonuses, gifts, and benefits create a challenge for them.
Tax laws in Vietnam frequently change, even as businesses pay their taxes. Payroll staff must understand tax regulations and stay updated to ensure compliance and timeliness.
Software used to manage PIT is complicated and difficult to use
Finally, businesses encounter difficulties in using tax management software. Problems may arise from partial integration with human resources and payroll management systems.
This leads to challenges in filing procedures and using public services provided by the General Department of Taxation. Moreover, technical problems and system failures are common problems that slow down effective tax management.
To solve this, businesses should choose solutions that give the most benefits at a fair cost and with low risks in payroll processing.
Because of technological advancements, more businesses are opting to use outsourcing services to handle their payroll and tax duties. Engaging personal income tax finalization services not only ensures accuracy but also ensures compliance with legal regulations, thereby reducing potential risks commonly encountered.
Why should businesses choose terra Payroll to solve personal income tax finalization tasks?
Service quality
terra is a trusted partner, providing payroll calculation, PIT finalization, and social insurance management services at reasonable costs for businesses. terra makes sure that PIT calculations are accurate and up-to-date with legal changes. In case of any mistakes, terra takes full responsibility and offers a timely solution plan.
Access to terra HR System's platform for FREE
By choosing terra Payroll, businesses can use the terra HR System for free. This helps with managing employee information efficiently. After terra Payroll completes payroll calculations, businesses can view and download payroll reports on the terra HR System. terra Payroll will use the payroll reports to create PIT reports for businesses to track or make new PIT reports.
Extremely reasonable costs
At terra Payroll, we offer services for finalizing personal income taxes, managing payroll, and handling social insurance. We keep our prices low to help businesses with their cost concerns.
As we can see, mistakes in the process of PIT procedures are always challenging and prone to occur. However, most of terra's clients have successfully solved these difficulties with terra Payroll services. The terra HR System helps users deal with the complications of tax management software.
terra Payroll has assisted more than 250 businesses. We believe that our PIT finalization service can reduce risks in tax and social insurance processes for businesses.
Improve your business's tax management with terra. Complete the form or drop a message on Zalo OA to have the quotation of PIT finalization service. We are ready to provide advice and offer the most suitable solutions to your business.
