PAYROLL SERVICES

NESL PAYROLL SERVICE COVERAGE

As organizations continue to expand, managing payroll processes merit special consideration. To build, manage and implement payroll related operations and processes, one requires an organised approach. NESL focus payroll services to ensure:

• Tax efficient management
• Efficient and timely administration
• Regulatory compliances

NESL offers following services with regard to the payroll functions:

Most large enterprises transfer payroll services to third party, as outsourced solutions are time and cost effective and more flexible and offers greater control for a Company with large operating networks. NESL offers its services to its client by managing the payroll services with efficient and accurate way.

NESL payroll system maintains records of all employees irrespective of nature of their payment (monthly or daily or hourly). Details records of take home salary, tax deduction, workman’s liability insurance, medical history, personal accidental insurance, gratuities, leave/severance/holiday/family allowance, medical/mobile/per diem/transport/annual allowances, bonus, termination pay, pensions, payment in lieu, Sick/annual/casual leave calculation, other benefits (accommodation, foreign allowance etc.) are kept for future reference.

Sometimes, depending on the offer and nature of work, separate arrangements for work clothing, personnel protective equipment and medical examinations are provided.

The benefits and packages are up to the client and individual consultant/employee to agree on. NESL executes payroll administration as agreed by the parties.

PAYROLL DIAGNOSTIC

Due to its sensitivity, compliance and volume, it is a service to be performed with near accuracy. As a result, effective payroll services require specialization and a clear understanding of the applicable laws.

Cross border experience and exposures of NESL in dealing with significant number of multinational companies operating in Bangladesh, NESL stands out to be one of the most experienced companies in dealing with local and expatriate payroll services.

Key service offerings:

NESL’s key service offerings include:

• Review existing employee compensation policies:
  • Identify cost ineffective components arising from admin or potential litigation costs
  • Suggest tax efficient compensation items wherever possible
• Review withholding tax computations, statements and payments for adequacy of compliance
• Verify documents with regard to reimbursement claims from a tax compliance perspective
• Identify potential tax and penalty exposures due to non-compliance
• Highlight tax exposures which may lead to litigation with mitigating measures
• Evaluate cost saving opportunities for viability and consistency within corporate philosophy
• Recommend implementable ‘leading practices’ on payroll policies and procedures
• Review applicability of Bangladesh Labour laws.

EMPLOYEE COMPENSATION STRUCTURE

Expatriate of high skill category within certain industrial sectors receive significant compensation in the form of salaries, allowances and benefits. However, international competitive biddings, changing global market condition along with resource sourcing from various regions is putting pressure on organisations to be cost conscious while remunerating employees in a tax-efficient manner.

BIDA prescribes a minimum salary structure for expatriates working in Bangladesh.

It is focused that the structure that is offered meet:

• Minimum mandatory BIDA prescribed salary
• Flexible and employee friendly in terms of relocations, rotations, work schedules
• Meets contractual requirement of clients
• Cost effective
• Simple to administer
• Tax efficient
• Aligned with industry practices

Key service offerings: 

• Use NESL salary database to match with package offered to the new client
• Use global published salary review
• Examine other compensation structuring options available to the organisation
• Review BIDA salary recommendation
• Analysis of the current employee compensation structure so as to:
  • Advise on the tax implications thereof
  • Weed out policies which are not cost effective due to administrative costs or potential litigation costs
• Advise on the estimated tax liabilities based on potential compensation offerings
• Design a standard manual containing payroll policies and procedures
• Identify potential tax, interest and penalty exposure (if any) for regulatory violations.

TAXATION SERVICES

NESL provides taxation services, which in turn saves time and cost to clients and employees from managing complex accounting process and mitigate their related compliance issue.

The services are as follows:

• Cross border tax planning for the client
• Arranging issuance of Tax Identification Number
• Tax planning and management for local personnel
• Tax planning and management for foreign personnel
• Tax deduction / withholding tax at source and deposit to government treasury
• Issue salary certificate mentioning tax deduction and deposit
• Tax return submission, tax assessment and obtain tax certificate