Outsourcing payroll services in Singapore can help reduce business operation cost. It is not necessary to hire in-house professional accountants on permanent basis. Services of payroll processing providers can be hired as and when needed or on annual contract basis for better cost effective rate. One of the benefits of payroll outsourcing include helping company save on time and money that would normally be used to invest in IT infrastructure, accounting and bookkeeping system, payroll software and other related IT products and services. If business owners are the payroll administrators and self-managing the entire payroll and leave process themselves, chances are the probability of encountering problems and breaking laws unknowingly would be so much higher. They may not be aware of the latest developments in payroll laws, payroll software or any new industry standards.
Payroll processing is an important part of business management. It is a complex task that must be handled properly according to the accounting rules and laws. Failure to do so can result in payroll mismanagement that can lead to legal problems with Singapore tax authorities. However, it is unlikely to experience these common problems if payroll administration is outsourced to a company that specializes in this area. Instead, they have highly trained, certified and qualified professionals who can advise on excellent payroll management tips which can improve business productivity.
Payroll Outsourcing Service vs In-House
Large companies can afford to hire in-house accountants and other financial professionals to manage the payroll jobs but this might not be possible for SMEs. Small business owners might find it more cost effective for their HR management by engaging a payroll processing agency that provide comprehensive payroll services in Singapore.
It is advantageous for SME business owners to consider engaging external payroll services company that can provide customized solutions. A dedicated team is usually assigned to handle the payroll processing job. In fact, having a one-stop service from payroll accounting company that can provide a wide range of finance related service is one of the many benefits of outsourcing payroll services that are appealing to SMEs. From basic salary calculation to computing IR8A tax, the payroll specialists can handle all types of finance related tasks. They can provide complete monthly payroll administration of all employees according to the company policies and statutory requirements. All standard payroll reports will be included, with the handling of calculation and filing of monthly contributions to self-help groups (SHGs) and SHARE donations such as SDL, CDAC, FWL, CPF, ECF, MBMF and SINDA. For yearly income and tax reports, do note that if foreign workers are employed, company will have to file tax report IR21. Corporate Income Tax filing can be outsourced to these payroll accounting firms as well to help employers save on all the compulsory tedious administrative work and time.
Payroll services includes filing of statutory payments of employees and ensuring salary is credited into their accounts on time either weekly, monthly or bimonthly depending on company’s directives. The service covers processing of leave and expense claims, bonuses and any other ad hoc payments where salary disbursement through bank transfer will be well taken care of. Statutory claims like maternity, child care, national service, IR21 and other forms are prepared and submitted. A detailed payroll report will be provided for management’s review on a regular basis.
When payroll is processed and managed properly, it results in higher satisfaction rate with the employees. They do not have to worry about their salaries, bonuses and other benefits as they trust the company they work with. They are confident and assured they will receive their wages on time. This results in happy employees who are more productive and loyal. Therefore, the benefits of payroll outsourcing services to a payroll accounting company can help SME owners in areas where they not only can cut down on unnecessary cost, avoid risks, improve productivity but also concentrate on the core business. If you need any further enquiries on payroll outsourcing services with accounting services, please don’t hesitate to list your requirements with our friendly consultants.