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Non-compliance with Cambodia’s payroll regulations can result in serious consequences for employers, including fines, legal disputes, and reputational damage. Below are some common areas where non-compliance may occur and how to avoid them:
Late Salary Payments
Employers are required to pay employees on time, according to the agreed payroll cycle. Delays in salary payments can lead to employee disputes, fines, and damage to your company’s reputation. To avoid these issues, businesses should implement reliable payroll systems that ensure salaries are processed and paid on time.
Missed Social Security Contributions
Missing deadlines for social security contributions can result in penalties, including interest charges on overdue amounts. Employers must ensure that NSSF contributions are calculated accurately and submitted by the 15th of each month to avoid non-compliance.
Incorrect Tax Reporting
Failing to withhold the correct amount of income tax or misreporting tax liabilities can lead to fines from the General Department of Taxation. Employers should regularly review their payroll processes to ensure that taxes are calculated correctly and that all reports are submitted to the GDT on time.
Non-Compliance with Employee Benefits
Employers who fail to provide statutory benefits, such as paid leave or social security, may face legal action from employees. It is important to understand Cambodia’s labor laws and ensure that all required benefits are provided and properly documented in the payroll system.
How AYP Can Help
Managing payroll in Cambodia can be challenging, especially for businesses unfamiliar with local regulations. AYP provides a range of services to help companies manage payroll efficiently and ensure compliance with Cambodian labor laws.
Professional Employer Organisation (PEO) Services
AYP’s PEO services allow businesses to outsource their payroll management, ensuring that all salary payments, tax withholdings, and social security contributions are handled accurately and on time. We help businesses stay compliant with Cambodia’s payroll regulations, reducing the risk of penalties and legal disputes.
Employer of Record (EOR) Services
As an Employer of Record, AYP assumes full responsibility for your workforce in Cambodia, handling all payroll, HR, and compliance functions on your behalf. This allows businesses to focus on growth while ensuring that their payroll processes are fully compliant with local laws.
Payroll Outsourcing Management (POM) Services
AYP’s Payroll Outsourcing Management (POM) services provide end-to-end payroll solutions, including calculating salaries, tax deductions, and social security contributions. We ensure that your payroll is processed accurately and efficiently, helping you avoid non-compliance risks and penalties.
With AYP’s services, you can rest assured that your payroll is in good hands, allowing you to focus on growing your business while we take care of the administrative details.
