5 Key Benefits of Outsourcing Your Payroll in Singapore
We all know how payroll has a direct impact on the morale of the employees to the financial stability of the company. Delay, irregularity, or mistakes in the payroll may cause the company to lose its reputation to its employees.
While bigger companies have a dedicated department to look into it, smaller companies are helpless burdening the accountants and administrative staff with the payroll job as the medium companies are efficiently outsourcing payroll services to providers of professional Payroll and HR services.
Gone are the days where employees approach the payroll section in their next block for clarifications on their benefits and incentives. COVID-19 has changed the workforce globally. The Work from Home model has left even the company’s employee to visit his/ her cubicle or worktable rarely. As companies are also changing towards remote working worldwide considering cost-saving, external payroll services show to be a better option for all sizes of companies.
Despite freeing up your business to focus on its strength and be at peace about your employee’s obligations as they are dealt with efficiently, hiring outsourced payroll operations offers several other benefits to the company and the business on the whole. They can offer both payroll and HR services to fulfill all of your administrative needs.
Consider the following benefits of outsourcing payroll before making a decision.
Payroll Services Help to Control Cost, Time, Energy & Resources
Payroll is not just one ‘payday’ job.
Payroll is rather a complex task that includes but not limited to calculating the shift roster, tracking work time, leaves, public holidays, benefits, incentive-cuts, new employees, terminations, processing payslips, complying with the taxation laws, maintaining the payroll software, handling employee’s queries and continuous follow-up of all the above-mentioned activities.
Since payroll is an area that deals with the employee’s trust in the company, it has to be precise and on time all the time to satisfy employees, partners and other direct and indirect vendors/ dealers/ suppliers, connected in the business.
The precision is important to avoid confusion at the year-end during the tax and audit time.
So, it requires more members in the in-house team for efficiency, cross-checking and double verification. This, in turn, costs more to the company.
Outsourcing payroll services not only controls costs, resources, infrastructure and time-saving but is a rational move allowing the company to concentrate on its core business.
Better Confidentiality and Security on Payroll Data
Payroll processing is a sensitive area dealing with confidential information
Payroll processing is a highly risky operation against payroll frauds like timesheet fraud, falsifying wages, expenses reimbursement fraud, ghosting and tampering company files, due to personal gain. Maintaining data on the company’s server or network is also equally risky. And, it is not possible to have a check on unethical cybercrime fraudulent activities constantly.
Data protection and storage measures, multiple server locations, backup facility through the state-of-the-art digitalization by payroll providers will avert possible payroll frauds endorsing remote payroll operation ‘a safe haven’ for personal data. By outsourcing payroll services, their advanced payroll software will be able to protect the data of your employees from nay prying eyes.
Professionals with expertise on tax regulations
When you are here to do business, is it necessary to bother about staying abreast with the labour and taxation rules and regulations? However, it is important to know the federal, state and local laws when it comes to running a business, to avoid notice and penalty from the Inland Revenue Authority of Singapore (IRAS), a government body in-charge of tax collection.
Additionally, today’s workforce comprises of full-time employees, part-time, work from home, contractors, permanent staffs, casual employees requiring various pay conditions abiding different taxation rules and benefits, compensation, insurance, incentives, superannuation, appraisals, demanding a team of skilled experts trained in this area.
Outsourcing payroll services will bring a lot to the business especially, the owners, CEOs, CFOs and managers, who can be worry-free about their employee’s requisites.
Nowadays, payroll vendors come up with many value-added and complimentary services. They are also available for specialized services, per- payslip, process salaries/ wages- hourly, monthly, fortnightly, accommodating all sizes of companies.
The Singapore Government has come up with many measures and support schemes worth $4 billion to help firms and workers cope up with the COVID-19 pandemic. Besides, several tax treatments and a corporate income tax rebate for the year 2020 has been announced.
Even bigger companies with an in-house payroll department can outsource the service to have better knowledge and access about the tax rebate and benefit with the help of payroll experts, during this worst situation. As these companies have years of professional experience in Payroll and HR services, they can be depended on for their technical knowledge and expertise.
Access to Updated Payroll Technology
From automation to artificial intelligence, from voice-enabled assistants to minimized manual processes and human error, technology in payroll plays a vital part in bringing accuracy in protecting, securing and processing employee’s data.
While big companies are reluctant in adapting to cloud-based payroll software concerning security, privacy and cost, payroll providers, who dedicatedly work for this purpose, invest more on technology in data protection thereby delivering the high-end technology-based service to its clients, even to smaller companies with just 20 employees.
Other advancements in payroll software include staying current with the tax regulations; regular reporting; mobile computing wherein the employees will be informed about their paychecks; track time through their mobile phones; and big data analytics through which the company will be given valuable insights, based on which the company can change its strategy towards budgeting, efficient functioning and reducing costs.
Better Productivity/ Reliability
The Human Resource Information System (HRIS), largely used by the payroll providers, has a positive impact on the employees, as they can directly access their review checks, benefits, leave information, company documents and other updated information. This would instill confidence in the company among the employees.
The HRIS along with a 24-hour customer care support system, to answer employee’s queries will add a sense of satisfaction to the employees and improve their productivity. Professional payroll vendors, who are experts in this field, will handle employee’s queries properly and clarify them providing attention to details. This will leave the employees to rely on the company and serve for the long-term.
Though payroll operation is a sensitive job, it is an essential one in a business. Even a small mistake in the payroll might lose the loyalty of a long-term employee, leaving them disinterested and unmotivated. It is a wise move to engage in outsourcing payroll services that you can trust after studying their track record and reputation.
Payroll is much more than just a salary; it is how you receive, treat, reward, retain and compensate your employees for their skill, talent, service, hard work and nine hours of their life that they give to you every day.
Outsourcing Payroll Services in Singapore is gaining popularity in recent years, especially among newly set up businesses, as they lack the required manpower to process payrolls. Payroll in Singapore can be tricky to process especially if you have foreign employees, but payroll service will be able to alleviate this load off your company’s back.
Even if your company already has a payroll system in place, these service providers will be able to help you upgrade your payroll software to improve your company efficiency. The operation costs and time consumed by admin work can be greatly reduced with payroll and HR services, as the service providers will be able to cover all of your administrative needs.
If you are wondering where to find such outsourcing payroll services, WLP group offers both payroll and HR services. We are able to provide professional and hassle-free payroll processing, and often provide good advice in payroll management. Contact us for more information on our payroll outsourcing services.