Payroll services in Singapore are usually utilized by big corporations. In order to save on the costs of outsourcing, many small businesses opt to settle their payroll in-house. This way, they can easily make changes and have better control and understanding of their payment process. However, payroll is a repetitive and intricate operation, this potentially poses several challenges especially when the company is in the midst of expansion. With more employees joining the firm, payroll processing gets more time-consuming and complicated.
Challenges of in-house payroll
The nature of payroll is time-intensive yet also requires precision. Accurate payroll is important to your employees as it affects their livelihood. Employees are precious resources to a business. Errors in paychecks is definitely an unhappy situation that we want to avoid at all costs.
Calculation of each employee’s payroll is subjected to different factors such as CPF contributions for different age groups, varying employee benefit programs and taxes requirements. This causes your in-house payroll process to become complex and hence extremely challenging to process the exact salary and reimbursements of each employee.
We know that manual tracking of remuneration is definitely not an effective process. A great alternative is investing in in-house payroll software. There are however many downsides associated with this approach such as time taken for staff training, developing the ideal interface of software and money invested in them. For small businesses, this may not be the most efficient allocation of resources.
Outsourcing this process may potentially save you more time and money. Let us explore the benefits of payroll outsourcing services for small business:
Enhanced efficiency and accuracy
External payroll services can be customized to fit your business needs. Any instructions is just a simple call or email away. Payroll outsourcing companies provide basic to complex payroll administration for businesses via automated software systems. They are able to compute all your employee’s salary and issue printed or electronic pay advice to each of them timely and with accuracy. Outsourced payroll functions also help reduce situations of technical unfamiliarities which can lead to errors in calculation.
With this responsibility moved away, it frees up the time for small business owners, enabling them to concentrate their resources on potential areas of growth. Therefore, outsourcing may turn out to be a more economical decision for small business owners.
Access to professional expertise
Outsourced payroll staff are professional in this area, staying on top of changes in CPF rules and tax reporting requirements. They are therefore helpful in providing an answer in situations of tax uncertainty. They are knowledgeable about payroll legal and tax obligation to help you make informed business decisions. Tapping on to their resources such as automated payroll software, can reduce ambiguity with regards to payroll calculation by providing a clear breakdown of employee’s claims and leave entitlement. This greatly eliminates situations of payroll disputes.
Compliance with tax liability
Payroll is more than just sending out paychecks, you need to ensure that your company complies with all the tax obligations that are tied to having employees. Getting in trouble with IRAS can result in serious penalties which is definitely undesirable for any businesses. Accurate and clear payout of payroll has a long-lasting positive impact on your annual tax reporting. At the end of the year, tax requirements including preparation of IR8A form, IR8S forms, Appendix 8A and Appendix 8B can be challenging and confusing. A payroll service will handle the paperwork accurately on your behalf and keep you tax compliant.
Reduce the need to re-train or hire new bookkeepers
Employee turnover is a natural occurrence in companies be it in MNCs or small-sized firms. By hiring an in-house bookkeeper, companies bear a risk of the employed bookkeeper resigning. This is a pain to many business owners as they have to re-train or hire someone new. This vicious cycle of training new employees and leaving puts a strain on business operation. However, outsourcing eliminates such a problem by ensuring the payroll function of the company is accounted for at all times.
Stay ahead with by outsourcing your payroll service in Singapore
For reliable payroll outsourcing services in Singapore, get in touch with us. Ranked the 18th largest international accounting firm in the world with over 7,000 people operating in 78 countries, let Ecovis Bizcorp help you support your business whenever, wherever. Contact us today to find out more.