Why Small Businesses should Outsource Payroll Services in Singapore?

Payroll Services Singapore

Payroll Services in Singapore

 

Are you spending a huge stack of money, time and resources in managing the non-core aspects such as payroll services & accounting instead of being focused on the productivity of your business? You are not alone in doing such expensive mistake in business. The majority of small business owners tend to wear many hats on their own for the sake of saving a few dollars. But, as the business grows and the competition becomes tough, they fail to manage the task efficiently. The third-party firms save the business from facing some undesired turmoils in business.

Outsourcing of non-core functions including payroll has always been advocated by the business consultants given its manifold advantages. It helps the businesses not only in managing the accurate data but also assist in complying with the local statutory laws. Outsourcing of payroll services in Singapore has been embraced by more and more companies as it is the easiest way to cope up with the ever-changing rigorous laws of IRAS (Inland Revenue Authority of Singapore). Secondly, they could get more time to concentrate on core competencies of the business.

Nevertheless, a section of small business owners is still using the Do-It-Yourself approach to keep fuller control over the internal functions. They pay less heed to the growth rate of their business and eventually, many of them are forced to cease their business within as few as five years of the company incorporation. Let the blog explain you the reasons why small businesses should outsource their payroll services Singapore.

Meet the Compliance of IRAS:

Meeting the statutory obligations of IRAS is quite challenging and stressful for the businesses in Singapore. They fail to keep the pace with its stringent laws due to their business workloads. However, the Singapore payroll consultants of the firms keep themselves abreast with the laws and help the businesses to fulfill the legal requirements easily.

Get Access to Technology and Professional Expertise:

An advanced Singapore Payroll firm provides services to their clients using technology-driven software and expertise of the consultants. Many of them have been processing payroll for years and can deal with the odds without breaking a sweat.

Reduce Business Cost & Save Money:

Outsourcing your Singapore payroll services can help you save money. The fees of these firms are competitive and way less than the cost of an in-house employee. When you employ an in-house payroll consultant, you would have to pay for the salaries, benefits, insurance, infrastructure and so on, which can burn a hole in your pocket. Cost saving is the key driving force behind the rising popularity of outsourcing Singapore payroll services.

More Data Accuracy is Ensured:

A good and trustworthy payroll service provider is less likely to make a mistake and is sure to deliver accurate data. The ever-rising competitions in the market prompt them to deliver high-quality services within the specified period. The delivery will not be affected by any illness or vacations which you otherwise have to face in the case of in-house staff. Plus, it eliminates the fear of fraudulence and payment manipulation.

Outsourcing your payroll service can prove to be a smart strategy to keep your business growing by focusing on your core competencies. Also, you get plenty of benefits as mentioned in this blog. So, what more you are waiting for? Search a good payroll Singapore firm, outsource to them and lead a peaceful life.

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Outsourcing to Payroll Processing Services Singapore is a Solution for Small Businesses

payroll services Singapore

Appointing Payroll Processing Services Singapore

The payroll processing is a non-core activity for every business as it does not generate any revenue. However, it is important from the point of view of complying with the Employment Act of Singapore and healthy atmosphere at the workplace. The act holds every Singapore employer responsible for paying the salaries within a week at the end of the payment cycle. To do this time-consuming task properly, you need to assign competent resources to it. On the other hand, you can outsource it to the reliable payroll services Singapore.

Reasons for Appointing Payroll Processing Services Singapore

Today’s trend is to appoint payroll processing services Singapore. However, if you believe in doing it yourself, you must know that, in reality, it is not that difficult. You can do it yourself if you know accounting.

However, there are a lot of salary components involved in the process. Mistakes start creeping in the calculations as the fatigue sets in and concentration wavers. These can also be caused because you forgot to update yourself on the latest changes in the rules and regulations. They can also happen if you are using an absolute software.

Moreover, the time you need to invest in DIY payroll processing is huge and at the end you do not get any medals for doing it precisely. For a Small and Medium Enterprise (SME) owners, it is wise to outsource it to payroll processing services Singapore. By doing so, you get to benefit from the latest payroll software used by the service and the careful attention lavished on your Singapore payroll calculations by the professionals in the employ of the service.

Hiring payroll services in Singapore is also a good option for the small businesses having an in-house payroll activity. Your decision frees your employees who you can reassign for the core goals of the business.

A Typical Payroll Processing Task Involves Following Activities

Salary Calculation:

  • Capturing and updating employee details, allocating employee benefits, etc.

  • Calculating gross salaries as per the company pay cycle

  • Arriving at the net salaries after deduction of CDAC, CPF, MBMF, SINDA or ECF

  • Adding bonuses and similar payments into the net salary

Managing Employee Leaves:

  • Recording and keeping an accurate count of each employee’s leaves

  • Managing the leaves to maintain optimum workforce to keep the work going

  • Taking into account leaves without pay and other claims by employees

Preparing Employee Payslips:

  • Depositing paychecks to employees’ registered bank accounts using bank GIRO transfers

  • Preparing and sending electronic as well as hard copies of payslips to employees

Handling IR8A and IR21 Forms:

Preparing and filing taxes of employees according to the prescribed regulations and time limit

Choosing a Payroll Service Provider Singapore

When you start searching for a capable payroll service provider in Singapore, see to it that it offers what you want. If it is not the case, ask whether they can customize their service to meet your business requirements.

Bear in mind that the different business circumstances force the owners to look for different kinds of payroll services. You may hire an payroll consultant or outsource it to a good accounting services in Singapore. Consider your business’ budget and choose a payroll service after analyzing your needs so as to optimize your employee management and the mandatory statutory compliance.

A competent payroll service provider in Singapore will eliminate the stress of payroll compliance for you by doing it accurately. It will also keep your employees satisfied and will foster the feeling of appreciation among them. Most importantly, you will have plenty of time to focus on the core goals of your business and to stand up to competition in the market.