There are many businesses that manage tax, payroll, accounting, human resources and all other finance related functions in in-house. Staffing these services can become very complicated and not mention, expensive.
Quite often businesses keep these functions in-house without realising how intricate these tasks are becoming over time.
Some of the most frequently outsourced business functions are payroll service, accounting and tax compliance.
The following are the top 5 reasons why outsourcing your payroll is a good idea.
1. Complex rules and calculations
Apart from being able to answer employee queries regarding their payroll in a succinct and confident way, there are so many other elements involved in calculating and processing accurate reimbursements and salary for each employee.
There are by-laws, rules around CPF contribution percentages for different age groups, taxes, on-boarding and exiting employees to name a few.
These tasks are time-consuming enough and even if you are resourced to complete them.
How can you ensure that everything has been completed properly?
Do you have a system to ensure that your calculations are accurate?
Do you have a secure audit system for payroll processing?
2. Better reporting
Payroll service providers offer a vast array of reporting solutions. The reporting solutions available might not be possible with in-house payroll software and may take a long time for your in-house IT department to build.
Payroll service providers can provide quick, ad-hoc reports to suit your specific needs.
3. Direct access to experts
Payroll service providers have access to payroll experts who can take employee's queries over the phone. They can be the single point of contact for your staff. When required, they will provide info or training sessions to staff when changes to the CPF requirements, employee benefit programs or taxation occur.
Most payroll service providers will come to your office to facilitate face to face training sessions and provide hands-on instruction with management and staff.
4. Cost savings
By outsourcing the monthly payroll functions, you could save a full FTE (full-time employee) from headcount. This resource could be better utilised in other areas of the business like sales or customer service. Or you could just absorb the additional savings.
It's common knowledge that cost savings will occur as a result of outsourcing payroll functions.
5. Professional payroll processing services
Payroll service providers offer basic to complex payroll services for companies.
They are always on time with computing all reimbursements and salary, and they keep individual payroll files for individual employees. They offer electronic pay advice via the cloud platform. In addition to this, annual income statements needed for IR8A submission to IRAS, are professionally produced in a secure and timely manner.
These value-add services enable you to focus on real business functions like business development, marketing and product research.
Outsourcing to a payroll service provider can alleviate a lot of the headaches involved with changing industrial relations legislation, payroll calculations and field payroll questions from your employees.
You also have access to comprehensive reports, access to payroll experts while saving time and money.
You will also have peace of mind allowing you to focus on growing your business.
Thousands of companies are turning to outsourcing payroll functions due to the vast array of benefits.
There is no reason why you shouldn’t start looking for a good payroll service provider today!
Speak to us today. We are a hassle free, one stop professional fee for all your payroll and HR administration needs locating in Singapore.