The Impact of Payroll Compliance on Your Business: What You Need to Know
Payroll processing is what helps you pay your employees. It is a time-consuming and complicated task that involves calculating salaries, wages, and taxes. Payroll compliance also means sticking to a payroll schedule and executing the task accurately.
Knowing the Impact of Payroll Compliance
As a busy owner, you may like to put your business’ payroll on the back burner. However, complying with the Singaporean payroll and labour laws is of the utmost importance.
There is also a positive impact of payroll compliance. It raises workplace morale and business credibility. It is why many companies hire professional payroll services in Singapore to take care of the task.
As a Singaporean employer, business’ payroll compliance is your responsibility. You have to follow the rules related to employee overtime, treatment, and income tax.
Let us get into details to understand the impact of payroll compliance on business.
What is Payroll?
You may use the term ‘Payroll’ to point to the list of your employees and the salary to distribute. It also refers to the salary structure used to pay your employees as per your payroll cycle.
Generally, the HR or accounting department processes the company’s payroll. A few small business owners Do It On Their Own to save a few bucks.
However, many Singapore companies trust payroll services firms with their payroll. They are also correct in doing so, as the payroll is a non-core task. It generates no revenue for them.
Payroll services in Singapore use the latest software and technology to take care of issues related to your payroll processing, employee benefits, insurance, and accounting. They use digital payroll documents to exchange data with you. They help you serve your employees quickly.
What is Payroll Compliance?
Payroll compliance is the legal structure Singapore has set up to control the operations of businesses. You have to abide by these payroll regulations to be compliant. Being consistent and prompt with it helps build the government’s trust in you.
You may benefit from a flawless compliance record. It may prove helpful at the time of business expansion. A history of non-compliance, financial penalties, or eroded brand image is not suitable for any business.
Whatever the case, you need to know the Singaporean employment laws if you are processing your payroll in-house. The better option is to hire an experienced payroll services firm. These professionals know the latest changes in the laws and produce accurate output.
Checklist for Payroll Compliance
Creating a payroll compliance checklist gives you a chance to ensure your compliance. It guides your in-house team through all the payroll processes and steps it must complete successfully. You can also use it to train your new HR staff or the staff taking care of payroll management for your company.
Payroll Rules and Legislation
The Employment Act 1968 details the basic terms and working conditions for local and foreign employees in Singapore. It is the prime employment legislation in Singapore. The Act also covers part-time, contract and temporary employees.
- The Employment of Foreign Manpower Act 1990 (EFMA) controls the grant of work visa passes and the employment of foreigners
- The Child Development Co-Savings Act 2001 (CDCA) provides maternity and paternity benefits to qualified employees
- The Retirement and Re-Employment Act 1993 (RRA) informs on the minimum retirement age for employees. It also facilitates the re-employment of eligibles over the retirement age
- The Workplace Safety and Health Act 2006 (WSHA) informs on statutory obligations regarding the safety, health and welfare of individuals working in a workplace
- The Work Injury Compensation Act 2019 (WICA) facilitate compensation claims from injured employees/dependants
- The Personal Data Protection Act 2012 (PDPA) protects the collection and use of personal data
- The Industrial Relations Act 1960 (IRA) controls the trade unions and their role in the employer and employee relationship
Payroll Tax Compliance
As a Singapore employer, you have to be prompt about your business’ payroll tax compliance. It means
- Accurately calculating salary considering overtime
- Withholding accurate tax amount from the wages
- Depositing tax liabilities with the right agency
- Prompt payroll tax returns filing
Singaporean Regulating and Enforcement Agencies
The following is a list of key employment regulators in Singapore
- Ministry of Manpower (MOM) enforces the Employment Act
- Central Provident Fund (CPF) Board supervises CPF contributions
- The personal Data Protection Commission (PDPC) controls the way personal data is collected, used or disclosed
Benefit or Impact of Payroll Compliance
A good payroll compliance record,
- Enhances your company’s reputation
- Raises employee morale
- Helps stay focused on achieving business goals and objectives
- Helps your business master the latest changes in the law
You need to track and master the changes in the payroll laws. It enables you to keep the impact of payroll compliance positive. On the other hand, hiring payroll services in Singapore also works. They have mastered the art. Call us at +65-6536 0036 or email us at firstname.lastname@example.org to learn about our customised payroll services.