Tips On Managing Payroll For A Small Business
Processing payroll for small business can be a complex task. Primarily, it challenges multitasking sole business owners and raises their anxiety levels.
Outsource Payroll for Small Business
Small business owners do not want to waste their time and human resources in tracking time, time-sheet, paid leaves, holiday pay, changes in tax rates, deductions for loans and statutory contributions to finally arrive at the accurate salary for each of their employee.
Rather than processing their payroll in-house, busy small business owners prefer to outsource it to payroll services in Singapore.
And in many cases, the payroll for small business employing less than ten employees also tends to be short-runs. It makes no sense for them to invest in the latest payroll software or in-house payroll department.
Outsourcing to payroll services in Singapore gives small business owners access to the latest software and tools. These are useful for keeping employee and payroll data safe from hackers and malware. They also need not invest in hiring and training payroll executives.
Here are a few practical tips on managing payroll for small businesses easily and accurately.
Tips on Managing Payroll for Small Business
1 Create a Payroll Schedule
Business owners, small or big, have to process their payroll accurately. It also matters to keep on its frequency and the dates of salary disbursement.
Decide whether you want to pay your employees at the end of each week, fortnight or month. Set the exact date to disburse their salaries. This essential info helps your HR calculate the time needed for payroll processing and honour the set payroll dates.
The next step is to prepare the payroll schedule for the entire year to not to lose sight of the next payday. Sticking to your payroll schedule consistently helps strengthen employee relationships and your company’s credibility.
2 Automate Your Payroll
You can increase the efficiency of your payroll processing by automating repetitive actions in it. Using the latest payroll software is a much better way of doing so instead of relying on Excel macro.
The manufacturer updates the software whenever their changes in tax rates, CPF contributions, etc. On the other hand, you must remember to update your macro. Not doing so messes up your payroll.
3 Appoint a Payroll Manager
Payroll gets more complicated as you increase your workforce. If you already have a large workforce, appoint a payroll manager. These professionals do not actually execute your payroll.
However, they act as the decision-makers in all payroll matters. They approve the release of final payroll reports, pinpoint reasons for errors in payroll calculations, Etc. They synchronise all your payroll activities to produce better results.
4 Updating and Maintaining Payroll Records
Managing payroll for small businesses takes effort. However, the story doesn’t end with paying the salaries of your employees.
As per the law, it is mandatory for Singaporean companies to retain and maintain employee and payroll data. They have to store the hard or soft copies of payslips. The duration is:
- At least two years for the present employees
- 1 year for their ex-employees
5 Know the Latest Changes in payroll Rules
All your efforts come to zero if your payroll processing does not conform with the present salary rules. If you implement absolute rules, even the latest payroll software or updated processes are of no use. Missing a minor update can ruin your work.
However, payroll services in Singapore keep themselves abreast of the changes in payroll-related laws. They are also familiar with the various nuances introduced by the new laws and their effect on the payroll.
Their experienced payroll executives work as a well-oiled team. They communicate efficiently with your employees and address their payroll issues and claims. They take up the extra workload to deliver your work on time.
You can rely on them to consistently deliver accurate processing of your payroll.
The regulating agencies in Singapore do not tolerate any mismanagement in processing the payroll for small businesses. Payroll errors can drastically affect its relationship with the employees.
You can avoid these problems by simply appointing a reliable provider of payroll services in Singapore. It also reduces your workload and frees time which you can use to grow your business.