Consider Outsourcing Your Payroll Management
Payroll management is a tedious and complicated task, as the payroll has to be calculated correctly, while simultaneously complying with tax and employment regulations.
Some of these regulations are:
- Accounting for maternity leave and sick leave, as well as vacations
- Accounting for staff allowances and any other benefits
- Ensuring that the correct amount is contributed to the employer’s and employee’s Central Provident Fund (CPF), as well as ethnic funds, Skills Development Levy and foreign levies
- Ensuring that employee salaries are paid timely
- Ensuring that payslips and annual salary reports are timely delivered
Firms and employees are expected to strictly adhere to these regulations, or severe consequences may be meted out for lack of compliance. Salaries must be paid at least once a month and are to be paid within seven days after the end of the salary period; otherwise, a penalty will be imposed. Furthermore, under the Employment Act, all employers must issue itemized payslips, or a fine will be imposed. Employers are also expected to keep two years of employment records for all employees, and salaries must be prorated for employees who work for incomplete work months. Additionally, employees are only allowed to work up to 72 hours of overtime and are to be paid at least 1.5 times the basic hourly pay rate.
Hence, processing payroll may serve to be an uphill task for smaller firms that do not possess company secretary services, which include payroll services. For a startup firm that is unable to afford a full-time professional payroll accountant, outsourcing payroll management to a firm that provides company secretary services would be the wisest option.
There are various firms in Singapore that offer payroll services. However, many of these firms have inefficient processes, as they use traditional and outmoded systems. Hence, it is advised for any firm seeking payroll services to thoroughly understand the operations of a firm’s services, before engaging them.
There are multiple facets that your firm will need to consider. Firstly, the firm engaged should possess an automated payroll system with advanced data storage software. The firm must also be equipped to take on a possible expansion by your firm. Should your firm expand in the future and employees increase, the servicing firm must have the capacity to continue doing payroll for these additional employees. The servicing firm should also have experienced and reliable staff to ensure that payroll is conducted accurately and provide advice when any problem arises. It is ideal for engaging a firm that also provides accounting and corporate services for cost efficiency.
OneStop Professional Services is a firm that is continuously expanding, and we have a team of well-trained and dependable professionals. Hence, we are confident in providing excellent payroll services with accuracy and efficiency, even as your firm expands. We also provide a diversity of services, ranging from audit and company secretary services to corporate finance. Additionally, we employ an automated payroll system with modern data storage software that is guaranteed to provide efficient payroll calculations.