Whether you have a large or small business in Singapore, using an optimised payroll system will increase your efficiency with all of your human resource matters, allowing you to fulfil your employer responsibilities more efficiently.
The following is a list of items to consider when putting together an effective and efficient payroll system for your company:
1. Independent Contractors or Full-time Employee
Understanding which one will make up the majority of your workforce is critical as the two are distinctly different.
This can have legal implications, like your obligations to your employees, taxes, and benefits payable.
2. Employee Paperwork
You need to gather your employee’s tax information.
Collecting this information can be as simple as asking your employees to fill out a form which requires tax information for annual payroll reporting.
3. Pay Period
You will have to decide on the frequency of payment to your employees. Will they be paid weekly, monthly it bi-monthly?
4. Employee Compensation Terms
You will also have to decide on how you will handle things like tracking work hours and paid time off.
Considerations on paying overtime compensation should also be made.
Other items to consider addressing are payroll statutory contributions and retirement plans which can vary for each employee depending on their role.
5. Choose a Payroll System or outsource to a third party
The accuracy of these activities is of very high importance. You can either perform these tasks in-house or outsource to a third party payroll service team.
There are also cloud-based software services which have automated some functions which will save you some time.
6. Running Monthly Payroll
After choosing a system, you need to decide if you will be operating it yourself or if you will hire an accountant to do it instead.
7. Keep Records
Record keeping is another important area to consider. In Singapore, you are required to keep employee records regarding pay even after they finish working with you.
Keeping good records will help you with compliance and might also be handy if you need to reference them in the future.
8. Report Taxes
You are required to prepare and submit payroll tax reports to the respective government departments annually. Therefore, accuracy and transparency are critical.
Adopting a payroll system will make sure that every dollar is accounted for. It will assist you with managing taxes, and your data will always be available to you when needed.
By using HR services online, you can expect a high return on investment. Your operation will grow as your business is running smoothly and your employees are happy.
Contact our payroll service team for advice today.