Difference Between Payroll Administration and Payroll Maquila

Both the payroll maquila and the payroll administration develop tasks that help in the management of the payroll of employees within a company.

Payroll management monitors and manages the payroll. While the payroll maquila is a service for a specific department within the organization or company.

To understand more clearly the differences between one service and the next, I share a more detailed explanation of each:

 

Payroll Administration:

Payroll administration is a responsible service on payroll and its related activities. Activities necessary to process the payroll of an organization or company are developed. This includes responsibilities for payroll accounting and required documents, payroll processing, bonuses, commission payments, processing of accounting transactions related to payroll, recruitment, tax collection, etc. This is a service offered by an external company focused on developing all aspects of the payroll, which also serves as the human resources area so that its clients can focus more energy on other areas of the business.

In a few words, this service is hiring an external company that will act as employer of your employees and all the administrative burden of the same will be transferred to it.

 

Payroll Maquila

This is where employees are still part of the company’s payroll and only the payroll and tax calculation service is offered. This service involves the hiring of a service by an external company solely for the calculation of a company’s payroll. This type of service makes it possible to manage the payroll process without having to have a large internal department. The payroll maquila service directs diverse functions such as the calculation of salaries, withholding of taxes, payment and deposit of salaries, bonds, loans, etc. leaving for the company the tasks of payment of salaries, better known as payroll dispersion.

Although this service means contracting another expense on a regular basis for the business, even small and medium enterprises discover that this type of service saves them time and money each month. Most companies that provide these services have different ideal programs to meet the specific needs of the size of each company. In terms of convenience, keeping the payroll and tax records up to date is a service that simply makes sense.

Remember that the administration of payroll and maquila are two different topics and that both services may or may not be contracted by the same company. Everything depends on the needs of each one in order to use the appropriate service.

Additionally, we invite you to download our guide to know how a payroll administration service will help your company.