Payroll System Singapore
What is a Payroll System?
In simple words, the payroll system is a payroll software Singapore management system that manages the salaries of the employees working in a company.
Have you ever thought about how companies provide a payslip at the end of the month? It may seem simple, but it’s a complicated process. There are many employees in a company, and keeping track of their work, leaves, allowance, provident fund, information, benefits, bonuses, and dozens of other things is not easy. It is a complicated process that requires experts and professionals who have updated knowledge about the payroll system in Singapore.
Any mistake can be a disaster that could be a reason for a considerable loss or employees’ mistrust. According to Singapore’s Employees Act, it’s essential for every employer to keep a record of all employees for a period of two years. Moreover, everything should be compliant with the regulations and guidelines of the Ministry of Manpower.
Otherwise, there can be legal action against the company. These regulations can change at any time, so it’s critical to keep an eye on everything. Experts who understand the payroll system in Singapore are needed for this crucial task.
What is Payroll Outsourcing?
The payroll system is essential for any organization, whether small or large. Large organizations have an in-house team or department to manage the payroll system. It’s feasible for a large organization to have a separate department, but it’s not cost-effective for Small and Medium Enterprises (SMEs).
Although the payroll system is vital in any business, it should not be the main focus. The core of every business is sales that brings cash flow for the business. Without cash flow, the business will die just like a human without oxygen. The most critical and important thing for any business is its customers. Thus, an entrepreneur needs to focus on customers rather than the payroll system.
There is no denying that the payroll system is required. Still, it could be outsourced to save precious time for the revenue-producing activities of the business, and that is where the payroll outsourcing system comes into play.
The payroll outsourcing system in Singapore is flourishing in this current age. It’s because many companies cannot afford to have an in-house team for this purpose; therefore, they outsource the work to any other company that has expertise in payroll systems in Singapore. These companies have experts to maintain the records of the salaries of each employee.
They are responsible for monthly/bi-monthly salaries, CPF deductions, bonuses/ad-hoc payments, no pay leave, payslips, and maternity, childcare, and other claims.
Once you hire a payroll outsourcing service, it’s the responsibility of the company to manage the payroll system. Moreover, the outsourcing service provider is also responsible for providing a detailed report to the management.
Benefits of Payroll Outsourcing in Singapore
There are dozens of benefits of payroll outsourcing in Singapore. Let’s look at a few of them.
Compliance with the Regulations
The most important benefit of payroll outsourcing is your compliance with the regulations. There are regulations for payroll systems in Singapore. Not every SME has enough knowledge to tackle payroll problems and regulations professionally. Any mistake can be a cause of loss. The loss will not only be of money, but it will also waste further time.
Moreover, there can be an amendment to the payroll regulations. However, if you have outsourced payroll services to a trusted Singapore consultancy, they will take care of everything. Payroll service providers have the necessary knowledge of the regulations and types of payroll system Singapore. Therefore, you can rely on a payroll system Singapore service provider to help keep your company protected from legal issues.
Low Cost of Payroll System Singapore
Some entrepreneurs think that payroll outsourcing in Singapore is expensive. But in reality, it saves a lot of money. If you establish an in-house team for the payroll system, then you will have to dedicate a place, computers, employees, and other things, which would cost a lot. On the other hand, payroll outsourcing only costs around 10% of that. Therefore, it’s an affordable and reliable solution for the payroll system.
Focus on your Business Operations
As discussed, the focus of every business should be on the customer. Outsourcing your payroll to a payroll system Singapore service provider will free up more of your time. This will allow you to dedicate more focus to your business operations and making customers happy. After all, that should always be the goal of any great entrepreneur. Looking for a payroll system Singapore service provider is a win-win situation and will drastically increase the growth of your business in the long-run.
No Legal Worries Regarding Payroll in Singapore
Once you hire a payroll system Singapore services provider, you won’t have to worry about anything payroll-related. The service provider will be responsible for everything, from record-keeping to payslips. The payroll processing that includes bank files generation and submission, leave claims, CPF calculation, and lots of other things, is the responsibility of the service provider.
Disadvantages of Payroll Outsourcing
There are a few disadvantages to outsourcing payroll in Singapore.
Lack of Control
When you outsource payroll to a payroll system, you don’t have any control over the calculations. Everything is done by the service provider. While you are provided with a detailed report on the staff payroll within your company, it is pivotal to check the report and ensure that there aren’t any mistakes.
However, if you have engaged the services of a reputable payroll outsourcing company, they will be sure to keep you updated and informed of the payroll management. Hence, it is important that you can engage a service provider who can fulfill your requirements.
Confidentiality is a major issue. The payroll system Singapore service provider is a third-party. The information of your employees should remain confidential regardless of whether you choose to conduct payroll in-house or to outsource payroll services. Selecting an unreliable company by mistake that sells the data is a huge mistake. Therefore, it is important to hire a reliable company that you can trust.
Payroll outsourcing is not an in-house management system. It is conducted and managed by a third-party (usually an outsourcing firm).
The new team needs to collect every information from the company to establish an accurate payroll system.
Any miscommunication could result in a serious error. Moreover, there could be time mismanagement and office culture differences.
This issue can be easily avoided if there is clear communication between both parties. Be sure to convey your company’s policies and needs clearly to the payroll outsourcing firm, so that they can accommodate them for you.
Every company should have a good payroll system in Singapore. However, not every company has the power or resources to have an in-house team. The only solution to this problem is payroll outsourcing. Payroll outsourcing is reliable; there are experts for the job. It could save you time and ensure compliance with regulations.
While outsourcing payroll systems in Singapore have disadvantages, they can be easily handled with care. Payroll outsourcing is especially beneficial for SMEs and start-ups. Therefore, entrepreneurs are recommended to find a reliable and trustworthy payroll outsourcing company that can keep an efficient and secure payroll system for their company.
Why W.L.P Group for Payroll Outsourcing in Singapore?
W.L.P Group provides the best payroll outsourcing and HR services in Singapore. We have experts and professionals who can provide you the best services according to the legal requirements. WLP Group has been serving SMEs since 2013. Our specialized and qualified experts provide support and consultation. We promise on-time work, error-free calculations, 100% compliance with MOM, data confidentiality, and everything that you expect from a professional payroll outsourcing firm in Singapore.
Contact us today for consultation and information. We are ready to provide reliable and trusted payroll services anywhere in Singapore.