What is payroll?
Payroll is the handing out of pay slip every week or every month. Payroll activities are carried out by experienced personnel who take into account all the employee benefits, wages, leave and bonuses, then do the calculation for allowances and deductions.
However, the additions and deductions are usually calculated into the account of CPF statutory calculation, government paid leave, national service leave, and other statutory claims for different benefits. Thus, employees will only receive their pay slip after all of the applicable allowances, additions and deductions have been applied. That’s the reason why employees pay slip shows the gross income figure and the net income amount, which is their actual take-home pay after the deductions.
What is payroll outsourcing in Singapore?
Payroll outsourcing in Singapore is a service that covers all the activities of Payroll but manages by an external provider. Payroll management is not what an ordinary person can jump into without prior knowledge about it.
That’s why outsourcing payroll Singapore is essential in:
- Eliminating payday stress as the employees will get paid.
- Helping direct deposit to the employees
- Saving on outsourcing and enhancing payroll management. A bookkeeper in some instances can be more expensive, even if just part-time.
- Helping to save the stress of software updating as payroll rules and regulations are liable to change.
- Assisting additional administrative burden and provides peace of mind for the business owner, and ensures employees get paid on time.
Reasons to outsource payroll in Singapore
Most of the businesses didn’t understand the basics of payroll management, which later can lead to losing in ROI for the company. While payroll management is not very difficult, it requires time and effort as this aspect of business involves finances.
Payroll management and processes deal with numbers and computations, which is a time-consuming task, and rigorous analysis, hence most of the business owners can’t manage their payrolls in an accurate and timely manner.
1. Cost: The cost of outsourced payroll is affordable in Singapore and will not put a dent in your company budget. It can easily be factored into your monthly expenses, and most of the time are cheaper than setting up and maintaining an in-house team to manage and calculate payroll.
2. Accuracy: Accuracy is the bedrock of any financial aspect of a business. Companies can Outsource Payroll in Singapore to experts who have the skill in dealing with finances and can assure a high rate of accuracy.
3. Productivity: As stated above, payroll management is a time-consuming task. You’ll have to deal with many financial transactions. When you outsource payroll in Singapore, you will be able to concentrate on other aspects of your business. Remember that you are a business owner, and not a payroll accountant.
4. Financial Insights: By engaging a payroll outsourcing service, they can provide insights into the current financial trend. A professional payroll outsourcing service has time to study and be updated on the contemporary insights of financing, because they have plenty of experience calculating payrolls. If they are contracted with your company for a while, they can give you insights on how your company’s payroll trends are over the past few months or even years.
5. Speed: You can’t compare the rate at which an employee will work to the rate a casual staff will work. Outsourcing payroll brings less pressure and distraction to the hired payroll manager, because they are focused on delivering your company’s payrolls on time. Outsourced Payroll can be done at a fast speed when there’s no distractions and pressure.
6. Accountability: Outsourced Payroll is well treated to avoid any traces of loophole in finances and accounting. Your company is able to cross check with your own financial records if they are any mistakes made, and no payroll outsourcing company will want to risk their reputation or reliability.
7. Security: Paychecks are secure in payroll outsourcing services because they understand the protocols of accounting, and they value their reputation. Many payroll outsourcing companies have the most updated software and digital security to prevent any data mishandling. Some experts even have equipment that is used to determine payment manipulation and payroll fraud.
8. Less Administrative Work: When you outsource payroll, your administrative workload will be lessened, you can focus on other parts of your business. You have nothing to worry about as the majority of payroll outsourcing services in Singapore are reputable and trustworthy.
9. Confidentiality: Payroll outsourcing companies in Singapore understand the standard and protocols of handling finances. Thus, they are reliable in maintaining the confidentiality of your finances.
10. Deadlines: A good Payroll outsourcing service in Singapore will be able to adhere to all your deadlines set, as managing payrolls are their specialty and they are able to do it at a much quicker pace. If payroll is done within the company, it may be hindered by unforeseen financial activities or situations, especially if there is a lack of manpower.
Other advantages of outsourcing payroll in Singapore.
By choosing to outsource payroll in Singapore, it saves time for other aspects of your business. Everyone knows that time is money; if you save time, you are saving money. Outsourcing payroll will free up a vast amount of time.
Thus, your staff will be able to use their time and skills to pursue more revenue generating activities.
Another advantage of outsourcing payroll in Singapore is that it saves you more money.
It’s not expensive to begin with, and will be more efficient and effective than trying to process the Payroll yourself or with a small, inexperienced team that is liable to make mistakes. It is much cheaper to outsource the payroll management to external services than to risk monetary and legal penalties in the future.
How can payroll outsourcing benefit your company?
Outsourcing payroll to the service providers in Singapore will allow your company to meet all the payroll requirements stipulated by Singapore law. A payroll is much more than just a pay slip; it establishes the trust between your employees and you that you will be able to provide them their pay on time and correctly.
If your company lacks enough personnel to solely focus on payroll management, it will be much more effective to outsource payroll in Singapore to an experienced service provider who has the expertise and experience to process payroll.
This ensures your company will be able to continue to operate, and keep your employees happy.
Andrej Fedek is a digital marketer. He recently started his own blog about digital marketing called InterCool Studio. His passion is to help startups grow and thrive in a competitive environment.