Payroll outsourcing in Singapore stands as a strategic option usually harnessed by companies based here and around the world. Moreover, large amounts of data and current information need technically efficient solutions.
Also, a high level of detail and attention must be paid to understanding the payment mechanisms and controls. Therefore, responsible professionals must have a strong and complete foundation in this field. In this article, you will get a lot of information about payroll outsourcing in Singapore, and understand its concepts and main benefits.
How does the payroll outsourcing system work in Singapore?
Even if payroll management is not the main priority in administrative operations, processing payroll is a job that requires detailed handling and a lot of time control. This is quite true because it covers certain major aspects, such as the payment of salaries, holidays, expenses, etc.
It also needs to contain the correct basic framework for calculation of leave, benefits, and claims, which differs in industry and business. In addition, the company providing payroll outsourcing in Singapore requires legal knowledge to comply with labor laws. Therefore, they will be able to accurately process all the payrolls of the companies they are contracted to.
Why do companies opt for payroll outsourcing in Singapore?
Many companies have assessed the amount of work required and all the risks with regards to internalizing the service while measuring costs through hiring, legal training, and even purchasing equipment. It is proven to be much more cost-efficient to hire a payroll outsourcing team rather than employ and train a team to do so in-house.
Payroll outsourcing in Singapore will transfer all these responsibilities and activities to a professional payroll outsourcing company that will provide a team that specializes in computing and processing of payrolls. Such teams are always trained and updated with regard to the current employment laws and company policies as well.
What are the key benefits to outsourcing your payroll In Singapore?
In addition to the major merits of transferring responsibility for payroll processing, opting for payroll outsourcing in Singapore will produce fewer mistakes in your company’s payroll and have access to the most updated technology amongst other merits. Now let’s check these out in detail:
1. Improves the payroll management process
With this choice, several important processes can be easily outsourced. Since they are mainly bureaucratic functions and usually have nothing to do with the company’s strategic goals, they are usually better controlled by outsourcing companies.
Usually payroll outsourcing companies in Singapore will offer these services in addition to standard payroll processing, as part of your company’s payroll management system. The following are some of the processes that can be easily transferred:
- Processing and calculation of payroll
- Advance salary calculation
- Termination of contract
- Collective or individual vacation calculation
- Issuance of information surveys and documents
2. Avoid security risks
With so many details and responsibilities in payroll processing, it is inevitable that the company has to pass sensitive information about employees to the staff in charge of payrolls.
If the payroll in-house team is inexperienced, they may accidentally leak confidential information, resulting in security risks. In addition, the company may have an outdated payroll system in Singapore which pose a security risk to company data as well.
Payroll outsourcing companies in Singapore maintain a high level of security and confidentiality through experience and advanced technology. These experts have the most updated knowledge, first-hand experience, and state-of-the-art software to ensure that the entire process is accurate. Thus, outsourcing payroll services helps to ensure that a high level of security and confidentiality is kept for your company.
3. Reduce costs and time wastage
Outsourcing payrolls in Singapore tends to be much cheaper and more time-efficient. By outsourcing the payroll, your entire company can be focused exclusively on growing your business and other business operations, rather than tedious administrative work. You also can direct all your team’s efforts in business activities, and redirect them to other departments when necessary. An in-house payroll outsourcing team will reduce the flexibility of your employees, as they have to be solely dedicated to payroll management and complying with government regulations.
You would also save time because you are able to spend more time on developing business strategies for your company, and not waste time on payroll management. Here are some common costs you will need to bear if you don’t outsource your payroll in Singapore:
- Time for leave, claims, and benefit processing.
- Spending on setting up a payroll system in Singapore.
- Hiring, training and support of responsible and experienced employees.
- Updated labor legislation.
- Time to complete, generate and send important ancillary obligations.
4. Increase team productivity
A very important issue for any manager is to look for ways to make the company improve its productivity. To improve this, you will need to ensure that your employees are doing the job they are hired for, and not additional tasks such as payroll processing.
The core business of the company must be constantly worked on and improved so that your company will be able to grow. In this case, the transfer of responsibility for payroll management will allow your team to focus on business operations and not get distracted with managing administrative tasks. As payroll outsourcing companies are experienced and professional, they will be able to adhere to your schedule and maintain your company’s productivity on the HR side of operations.
5. Improve accuracy
Technology in a payroll system in Singapore plays a vital role in improving the protection and accuracy of employee data. By using the most updated technology to process payroll, payroll outsourcing companies are able to minimize manual processes, thus reducing human mistakes.
Although some large companies are usually reluctant to adapt to cloud-based payroll software that involves security, privacy, and cost, payroll outsourcing companies have invested more in data protection technology to provide their customers with services based on high-end technology, even for small companies with only few employees.
Other advancements in payroll software include keeping up with tax regulations; mobile computing, in which employees will be notified of their salary; tracking time through mobile phones; as well as data analysis with which most companies tend to gain valuable business insights. Thus, such a company can easily change its strategy and effectively operate at a reduced cost when they outsource their payrolls.
In summary
Singapore payroll outsourcing services has become more and more popular in recent years, especially in newly established companies, because they lack the manpower needed to handle their payroll efficiently. Your company’s payroll system in Singapore can be tricky to process and set up, especially if you have foreign employees, but outsourcing these payroll services can reduce the burden on your company.
Even if your company already has a payroll system in Singapore, these service providers will be able to help you upgrade your payroll software to improve your company’s efficiency. Salary and human resource services being handled by outsourced payroll services can greatly reduce the operating costs and time spent by administrators, amongst other benefits, as highlighted above.
