"Take care of your employees, and they'll take care of your business"- Richard Branson
Receiving the payment on time enhances the sense of belongingness of an employee. Be it an entry, mid or senior level, if the on-time payment proceedings are followed accordingly by the business entity, the workflow and operations will be smoother.
When a business entity is small, it becomes easier to manage the payment details. Alternatively, what if the company size is massive? How will you deal with the same?
The answer to the above query is opting for a structured payroll service from a certified expert.
Singapore has been one of the growing business grounds that offers enormous investment opportunities to business investors. However, the nation also holds a strict law to protect the interest of the employees, which we will discuss further in this treatise.
Suppose you are a business owner/ investor and is planning to start a business in Singapore. In that case, having a clear understanding of the payroll services will help you to manage your organization efficiently.
Business Setup in Singapore
Today, the process of setting up a company in Singapore has turned out easy as the government has simplified the rules to a great extent to grab the attention of international investors.
Next, hiring the right candidate for the right job is the challenge, and thus, the payroll service comes into the picture. Next, you need to apply for the visa and entry passes for yourself and the company directors.
It helps you hire the right employees for the job and actively assists you in maintaining the human resources, employee administration and follows the employee regulatory compliances according to the Singapore laws.
Singapore Payroll Management
As per the guidelines, any business entity in Singapore must maintain a definite and transparent payroll system. However, here are specific pointers that are to be considered:
- The salary provided must include basic pay and allowances. However, it doesn't include food expenses, travelling or even house allowance.
- Must be paid at least once a month
- Providing the payslips turns out to be mandatory
- The employment records are to be maintained accordingly
- In case of incomplete work, pro-rata an employee's salary
- Calculate the overtime correctly
- Make a note of the mandatory levies and contributions
- Draft a reminder of the statutory reporting requirements
Maintaining a clean record of the payroll proceedings will help you to sort the audit process at ease. To know more about the audit services, refer to our latest blog on Why Audit Services are required in Singapore.
Singapore Employment Act
To provide fair justice to the employees in the nation, the Singapore government has an employment act that highlights the conditions to be followed by the business entities incorporated in the region.
Under the Employment Act, a company must pay the correct salary within seven days after the salary period. Failure to do so is looked upon as an offence and might end up in penalties.
Hence, it becomes essential for business entities to keep track of payment records. Timely payment of the salaries on time additional benefits, allowances, deductions, government remittances etc., is a must and can't be avoided.
Payroll Service Package in Singapore
Since we have discussed the payroll proceedings, let's have a glimpse at the tasks carried out in the payroll package.
- End-to-end adjustments, overtime, and other variables get calculated
- The employees are given the electronic payslips
- The monthly payroll process gets handled easily
- Submission of the Central Provident Fund (CPF)
- Tax clearance proceedings are taken care of
- Preparation of the Annual IR8A
- Generation of Auto-Inclusion Scheme (AIS) with IRAS
- Monitoring employee time and attendance
- Setting up accounts to make direct deposits
- Proactively monitor the relationship between the worker's comp premium and the actual payroll
- Integrating the third party with benefit plans
- Ensuring compliance with the State Federal Law
Thus, you have got an idea regarding the core grounds to be taken care of to manage the hired employees at ease.
Why Outsource Payroll Services?
Let's look at the benefits that you can get by outsourcing your payroll services.
A certified payroll expert holds an upper hand compared to an in-house team, as they have been indulging themselves in the same field for years.
Apart from maintaining your business records, they also help you understand how to utilize your money efficiently and effectively.
2.Blend with Tech
Today, the software industry has penetrated itself in every possible business segment, and payroll is nowhere behind. Customized software is available in the market that helps you to get a clear picture of the overall payroll proceedings. An expert can help you to fetch real-time data in a hassle-free way.
Outsourcing payroll services not only lower your burden but helps to save your time and available resources in a much better way. While you plan your business strategies with your team, an expert will take care of your payment proceedings.
When you outsource the payroll activities to an expert, your business privacy gets locked. However, on the other hand, if an in-house team member receives the comprehensive information of your employee, there are chances of leakage.
Thus, you have a complete idea about the Payroll proceedings in Singapore and why it is outsourced.
Are you wondering what's next?
Business Setup Worldwide, one of the top ten business consultants in Dubai, is here to provide you with a complete solution package. From company formation to opening a bank account, our experts can assist you by providing tailored solutions.
If you are looking forward to outsourcing your payroll service, our experts are here to hear you. Contact us today-we'd be glad to assist!