Managed solutions are an increasingly popular solution for employers dealing with several countries, large numbers of fixed term workers and a variety of employment conditions. Typically this relates to project based work or entry into new markets where there isn't the infrastructure for (or the time to establish) a fully compliant local payroll.

A managed service solution means engaging a single strategic partner who takes on the payroll, tax management and immigration (if necessary) for each jurisdiction. This partner may then manage further vendor relationships with immigration attorneys, recruiters, tax advisors, accountants and payroll processing firms.

For the client this has numerous benefits:
- ease of dealing with one vendor (reduced administration)
- presentation of one invoice for all services (reduced cost and easier management of budgets)
- ability to utilise "best of breed" solutions including full range of additional services
- ease of enforcing compliance and performance controls (limit employer liability)
- having a specialist supplier take over the administration and compliance means your staff can focus on core revenue generating business
- opportunity to transition back to in-house service when the opportunity provides
- increased flexibility and mobility
- can structure better benefits package for employees

Managed services solutions can also have complications and special attention should be paid to:
- service level agreements
- foreign exchange rates and managing fluctuations
- compliance for payroll, professional indemnity, public liability, immigration, social security, tax, occupational health & safety (OH&S), equal opportunuity employment (EEO), anti-discrimination practices, data protection, working time regulations, locally agreed workplace agreements, employee handbooks, etc
- contractual liability
- costs for additional services

Contractor Taxation and our partners have established and run managed service solutions for a number of clients. Would you like to know more?
Managed service solution enquiries