As an entrepreneur, you might already have completed the process to set up a company in Singapore and are now wondering if anything else needs to be done in terms of administrative matters. To keep your business operations running smoothly and expand your services, you will need to recruit more employees for your company.
Your employees have to be paid at the end of every week or month, and without proper knowledge of the payroll system in Singapore, it will be difficult to process employee payrolls in a timely manner.
This is where payroll outsourcing companies come in. Not only do they provide accurate and fast payroll processing, but they will be able to set up your company’s payroll system and keep the company’s payroll management system neat and clear. In this article, we will go through what payroll Singapore firms are and what they do, as well as list the benefits to outsource payroll in Singapore.
What is payroll in Singapore?
A payroll does not only consist of employee wages; they also keep track of your employee benefits and any claims they have made. It is not easy to calculate payroll in Singapore as there are complex guidelines and regulations put in place by the Ministry of Manpower, and all benefits need to be accounted for.
These benefits include, but are not limited to, CPF statutory calculation and deduction, government paid-leave claim submission, contribution to self-help group funds, and other claims and leave.
As it can be seen, payroll management is not easy for a relatively new company who does not have any prior experience or expert personnel in payroll processing. Newly incorporated companies often make the mistake to not outsource payroll in Singapore to first set up their accounting and payroll management systems. This will result in costly mistakes and errors.
Why is payroll important?
It has been stated above that payroll is not easy to process, but it is vital for any entrepreneur who has incorporated a company in Singapore to understand the importance of payroll. There are many reasons why payroll services in Singapore are important;
Accurate Accounting Files
Good payroll management is important for the financial accounting process that your company needs to file to ACRA at the end of a financial period.
This is because if payroll calculations are inaccurate, it can affect the expenses calculation of the company during the accounting process. This may lead to legal action from ACRA (Accounting and Corporate Regulatory Authority) Singapore, which may cause your company to be slapped with a hefty fine.
Trust from Employees
A payroll is more than just a salary; it builds the foundation of the relationship between employees and employers. Employees expect to receive their paychecks at the end of the month, but if payroll is not processed in time or is inaccurate, it is they who suffer from it.
This results in unhappiness amongst employees, and creates a lack of trust towards the employer. It will in turn affect office culture and morale, hence it is very important that the company’s payroll management is good.
Protect Company’s Reputation
If a company is notorious for having inaccurate payrolls, it will deter future employees from wanting to work with that company. After all, who wants to work for a company who does not pay them on time? On the other hand, a company with a great payroll management system and pays employees on time will have a good reputation in the industry.
Every company wants to protect their carefully grown reputation, and having payrolls processed on time will help with that, which is why most companies outsource payroll in Singapore.
Outsourcing payroll in Singapore will be beneficial to companies in the long-term. There will be less time consumed on payroll management efforts. More time will be spent effectively in other projects or operations. Payroll Singapore specialists are well-equipped to handle any of your payroll management needs. Our company, WLP group, has worked with many reputable clients and with our years of experience, we guarantee great service. Feel free to contact us today for more information!