How Much Does Payroll Really Cost? And How to Make it More Cost Efficient
Accountants always advise owners to track business expenses to reduce operating costs. Payroll is a prime area where you can apply this advice to optimise costs. Payroll services in Singapore can help you achieve it.
Rooting out inefficient payroll costs enhances your chances of running your business for a long time. It helps improve your business’ cash flow by reducing/eliminating unnecessary expenses.
For many businesses, their payroll is their major expenditure. So, it makes sense to go through it with a fine tooth-comb to find the money leaks. You can also use creative alternatives to minimise it.
You can improve your global payroll function by reducing the hours in your work-week, using temporary workers, or by reducing the number of times you pay your employees.
Counting the Payroll Cost
Generally, your company’s size, payroll model, and the country it is operating in determine the payroll cost. If you still process your payroll in-house, it will include the following:
- Software licenses fees
- Computer hardware and software
- Maintenance costs
If you use the latest cloud-based software, your payroll cost will depend on the following:
- The number of employees, region, the complexity of payroll
- Cost of using internal resources, HR, Payroll, and IT staff for the task
- Fees charged by outsourced payroll services in Singapore
Work to Minimise Payroll Cost
Using a reputed provider of payroll services in Singapore is a good move. These professionals will help save you money in the following areas:
Cost of Compliance
The countries are updating their statutory compliance requirements. Because of it, the cost of ensuring a business’ compliance with local laws is increasing. In Singapore, you must pay corporate income tax, get insurance, pay statutory contributions like CPF and levies, and strictly follow the regulatory process.
If you are processing your payroll in-house, you must be very careful to keep abreast of the changes in labour and payroll rules. Messing with these can get you penalised or fined. It is why companies use outsourced payroll services in Singapore. They get the work done promptly and accurately and enable you to keep your employees and regulators satisfied.
The research by Forrester shows that it is better to switch to the latest cloud-based payroll system. It helps you avoid the license fees of your legacy payroll system. It also means you do not have to spend on maintaining it. Digitising your payroll data which is reusable, also helps reduce costs.
Payroll errors can be costly. They put employees in financial difficulties. These can lower their morale and spoil the workplace environment. So, a late payment, underpayment, and inaccurate payment can hurt your relationship with the employees.
Such instances may make them look for other employment, increasing the cost of recruitment and bodyboarding. It also increases the HR staff’s workload.
Professional payroll services in Singapore are prompt and accurate and take good care of your task. Each successful payday enables you to retain your existing employees. It automatically helps reduce recruiting, onboarding, and training costs.
Payroll Processing Efficiency
The payroll system that you use matters. It also matters how you use it. Using a system not integrated with your HR application or multiple systems to manage payrolls for your employees from different countries is not wise. It increases the workload of HR staff. It is an error-prone and costly way of processing your payroll.
Outsourced payroll services in Singapore use the latest payroll systems and deal with your task by automating various payroll aspects. Their experience, knowledge and technology go a long way to ensure your compliance.
Your payroll reporting is going to be inefficient if you have to log in and log out to track accurate information. When you hire an experienced firm for payroll services in Singapore, they use their system to digitise your data. It remains in their database.
Your payroll services firm also consolidates your analytics and reporting. It means your data is readily available at any time. They then use it for salary calculation, necessary payroll taxes, deductions and tax reporting. They also use it for real-time payroll management and statutory payroll report generation.
To cut payroll costs down, outsource your business’ payroll processing. Entrusting this non-core task to a reputable firm offering payroll services in Singapore reduces your stress and anxiety.