Payroll software Singapore
Payroll is an essential function of any business. From tracking working hours to paying your workers, payroll management can be overwhelming; but that’s where payroll software comes in. For example, in Singapore, payroll software is used to automate the entire payroll process thereby eliminating manual onerous payroll tasks. This article would discuss payroll software and provide a guide on how to set up a payroll software in Singapore.
What is payroll software?
Let’s start with explaining payroll first. Payroll is the process in which employers pay employees for the work they have completed.
This might seem easy, but it can easily become complicated because of the various statutory deductions required. For example, employers are also responsible for tax deductions and paying premiums and depositing retirement funds.
As a result, payroll management duties can create an enormous burden for both small and large businesses. However, the good news is that businesses can use payroll software to avoid these issues.
A payroll software is designed to organise and streamline all payroll tasks. Payroll software requires employers to input employee wage information and hours, but not much more than that.
This information is used to calculate and deduct statutory fees automatically.
Additionally, most payroll software updates automatically whenever a tax law changes and will remind employers to file various tax forms. Some popular payroll software in Singapore include ADP, Payroll2U, and PayrollServe.
They have proven to be effective by eliminating errors whilst saving time and money.
Importance of Payroll Software in Singapore
Ensures Timely Payments
Ensuring that employees are paid on time is essential to your business reputation. Payroll software can not only send reminders, it can also streamline and automate the payment process to ensure timely payments
Calculates Deductions and Net Income
Once the employee’s gross income has been determined, payroll software automatically calculates deductions such as taxes, insurance and retirement savings. The deduction amounts are subtracted automatically, and the balance is received by the employee.
Eliminates Payroll Errors
Although payroll management is an important function of any business, nobody notices payroll unless something is wrong, and then it becomes time-consuming and costly to deal with errors. However, using payroll software can alert you to a discrepancy and save you time and money.
Prepares Tax Forms
Payroll software reduces the tax burden by automatically generating all the tax forms needed by employees, contractors and companies. The payroll system can also help your business stay on top by providing updates on changes to tax rates.
Calculation of company taxes and filing reports in Singapore can be confusing, and missing deadlines can lead to heavy fines and penalties. Payroll software programs provide information and reminders about compliance requirements.
The software is updated regularly, so companies always have the most updated information on changes to tax legislation and other regulations. Some software can also be set up to automatically generate reports and file taxes, making it easy to review and approve reports prior to submission.
How to set up company payroll software in Singapore
The steps to setting up your company’s payroll software in Singapore are classified into 3 stages; pre-payroll activities, actual payroll activities and post-payroll activities.
Actual payroll process
- Payroll calculation:
This is where the data is put in the payroll software to start the payroll automation process. This process results in the generation of net income after the required taxes and deductions.
After this process has been completed, it is considered best practise to reconcile values and verify accuracy in order to avoid errors.
- Defining company policy
Before you start the payroll automation process using payroll software in Singapore, it is important to establish both Singapore and corporate policies, such as pay policy, benefits policy, time off policy including vacation and leave.
You should ensure that these policies are well defined and in accordance with the statutes, and then have them signed by the management of your company so that standard payroll policy and processing can be established.
- Gathering data
After defining your policy, you need to gather payroll data. Interaction between various departments and payroll departments, where applicable, is often an integral part of the payroll process.
These are people who can give you access to important information, such as mid-year salary revisions and attendance data.
- Data validation:
The next step is to check the validity of the data to be entered and whether it aligns with company policy. This is also the time to make sure that no employee has been overlooked.
- Statutory compliance:
After all Singapore’s statutory deductions have been processed by the software, the payroll administrator sends the amount to the appropriate government agencies. As previously mentioned, using payroll software helps improve compliance and avoid fines and penalties.
- Payroll accounting and Pay-outs:
It is important that every organization keep a record of all its financial transactions for the payroll process. Payroll management should always ensure that all salary and reimbursement data is accurately entered into the company’s accounting.
Salaries can be paid out by cash, check or bank transfer. Typically, employers deposit salaries directly into an employee’s bank account. Once payroll is processed, a company needs to ensure their bank account has enough funds to make salary payments.
All companies, whether small or large, need to keep records of all financial transactions, including salaries. You can use the payroll software to track all your salary reports in an organized fashion, making it easy to access and extract any payroll data you need.
Payroll software in Singapore is of the utmost importance, as they make the payroll management process easier.
The importance of this software cannot be overemphasised, which is why it is important for existing and new businesses to take advantage of it.
The guide for setting up a payroll system in Singapore, as outlined above, should be followed judiciously, as a lapse in any of these stages, such as the input of incorrect information, could lead to complications in the future database.
There are many great payroll software in Singapore, and in order to make full use of their capabilities, you can contact a company payroll software provider. These agencies help to set up your payroll software, and ensure that it is successfully incorporated into your company’s payroll system.
WLP Group provides other services as well, including corporate secretiarial services. Check out the list of corporate secretarial companies in Singapore to see how WLP Group compares to other companies in Singapore.