Payroll and Insurance Service

D. Trip Vietnam (FDI company based in Ho Chi Minh City with offices in London, Boston, Shanghai) specializes in providing tourist tours to Asia. With the corporation's outlined strategy and business plan, the enterprise plans to recruit a large number of personnel, including foreign and Vietnamese workers.

D. Trip, a newly established company in Vietnam, is currently in the early phases of developing its HR system. The Board of Directors at D. Trip is unwavering in its dedication to ensuring that accounting, tax, and labor-related policies consistently align with Vietnamese law.

Recognizing TPM's esteemed position as a leading consulting company in Taxation, Accounting, labor, and social insurance in Vietnam, Mr. R, the CEO of D. Trip Vietnam, has proactively sought guidance. His specific emphasis is on labor-related regulations due to the strategic plan to recruit personnel, encompassing both Vietnamese and foreign employees, for business development. This includes a focus on:
- Regulations concerning salary and benefit payments: regional salary, allowances, minimum salary for social insurance participation, compulsory insurance participation rates for both the company and employees, alliance payment rates, and more.
- Guidelines regarding the currency used for salary payments to Vietnamese employees.
- Policies related to personal income tax in Vietnam, covering the calculation, declaration, and payment processes.
- Reporting requirements for periodic labor-related activities.
- Establishment of labor-related forms in accordance with regulatory standards.

TPM's solutions

Upon receiving the requested information from D. Trip, TPM's specialized team actively engaged in collaborative discussions, providing invaluable guidance on shaping the salary structure. They played a pivotal role in establishing a salary scale system and assisting the company in determining the optimal level of compulsory social insurance for its employees. This process not only facilitated the creation of a welfare fund, with compulsory social insurance playing a significant role but also served as a means to provide substantial benefits to long-term employees, thereby fostering their loyalty to the enterprise.

The implemented salary system is meticulously designed to adhere to various legal requirements, ensuring:
- Strict compliance with labor and salary regulations outlined in the Labor Code.
- Full adherence to regulations on compulsory insurance, including social insurance, health insurance, and unemployment insurance, as stipulated in the Social Insurance Law, Health Insurance Law, and Employment Law.
- Alignment with the Accounting Law and the Corporate Income Tax Law, accurately accounting for salaries as enterprise expenses and presenting them in financial reports.
- Conformity with the Personal Income Tax Law, recognizing that salaries are subject to personal income tax regulations.
- Furthermore, TPM recommends that D. Trip specifically negotiate details such as salary, bonuses, and allowances with employees. This information, along with the rights and obligations of both employees and employers, should be addressed in the Labor Contract for convenience when dealing with tax and social insurance authorities in the future.

RESULTS

Thanks to the dedicated consulting guidance provided by TPM's expert team, D. Trip has acquired a more comprehensive understanding of local laws. Furthermore, Mr. R deeply values TPM's commitment, enthusiasm, responsibility, and expertise, influencing the decision to engage TPM's payroll insurance services as a companion throughout D. Trip's company development journey

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