What is Payroll Outsourcing, How Does it Work and Should You Be Using it For Your Business
Payroll is not only one of the most critical operations of your company, it is also your liability. You can eliminate mistakes by letting an experienced payroll team handle them. You can do so in-house or can hire a third-party payroll outsourcing firms for the purpose.
Payroll outsourcing Singapore stands out as an effective and affordable way to handle payroll processing. Professional payroll services firms assist you in meeting corporate obligations within due dates. They free you of stress by taking care of statutory obligations expertly.
What is Payroll Outsourcing?
Payroll outsourcing is the process of hiring a payroll services firm for your payroll processing. Afterwards, you can look for services like:
- Structuring compensation
- Statutory deductions/contributions
- Calculating salary
- Tax filing and tax returns
- Time-sheet maintenance
- Leaves & vacation management
- Absenteeism reporting
How Does Payroll Outsourcing Work?
Submit Initial Details
Ensure you know the measures they take to secure data and its confidentiality. Know if it is inbuilt in their internal processes. It is vital to protect your employee’s personal information.
Maintain Electronic Time-sheet
Use a reliable and easy-to-use online timekeeping software where your employees can enter their work hours.
Submit this timesheet to your payroll outsourcing firm, and they will enter data manually at the time of payroll processing. It saves a lot of time and effort.
Ensure that information exchanges between you and your payroll outsourcing firm happen through a secure server.
Zero in On the Anomalies
Depending on your payroll needs, you can have a leaner payroll department to review reports and monitor the abnormal things. Instead of doing the data entry, they will investigate the anomalies.
Benefits of Payroll Outsourcing Singapore
Streamline Payroll Processing
A payroll outsourcing firm employs a team of experts. They have the latest update in labour and payroll rules. They also use the latest software and technology to automate and administer your payroll function.
After hiring a payroll service in Singapore, you will not need to hire and train in-house payroll staff. It can lead to significant savings. Doing so will also allow you to reduce efforts on managing human resources.
Enhance Employee Satisfaction
A robust and reliable payroll process can go a long way in placating your employees. Calculating accurate salaries and depositing them in their registered bank accounts pleases them. It helps in a pleasant environment in the workplace, enhancing productivity.
In addition, payroll services process employee leaves correctly. They also send tax filing reminders on time.
Avoid Payroll Frauds
Payroll fraud can bleed a company dry. Well, it is an exaggeration. Still, a company can lose a considerable amount of money annually.
- Padding of work hours
- False reporting of overtime
- Corrupt officials changing pay rate illegally
- Changes in pay rates due to coercion
- Holding back or delaying payment of advances/salaries
Be Free to Grow Your Company
Payroll processing is a heap of administrative work. It is time-consuming and complex. Your payroll outsourcing firm assigns a dedicated manager to you who takes care of the task.
They relieve you of the burden of compliance, as the Employment Act of Singapore stipulates. And You get to focus on growing your business.
You get enough time to focus on revenue-enhancing tasks like running a new marketing campaign, product development, customer satisfaction, Etc.
Tips for Choosing a Payroll Outsourcing Services Firm
Here are a few tips for choosing a reliable firm for payroll outsourcing in Singapore:
- List of all your payroll needs.
- Search the internet for payroll outsourcing firms that provide these services.
- Go through customer reviews and feedback on their work.
- Shortlist a few companies.
- List all payroll questions you want the firm to answer.
Is Payroll Outsourcing Right for You?
Big companies can afford to have in-house payroll teams. However, startups and small companies with small employee numbers may be unable to afford them.
These companies also cannot afford to get tied up in administrative work. It cuts into their time to grow the company.
Hiring a payroll outsourcing firm gives them a chance to reduce their workload. They get to focus on the core business goals, objectives and offerings.