Due to increasing employment in Singapore, there are several employment acts that were introduced by the government to keep up with this boom and to protect workers from being violated in any way. As the Singapore employment act suggests that any company that fails to give their employees the precise salary within seven days after the end of the salary period will be penalized under the law. This has put extra pressure on companies to ensure that their employees are paid on time and without any error or mistake.
Most companies might believe that the payroll process is far easier to handle but only a few actually realize its complexity. The whole payroll process requires every little calculation. One mistake and you are back to where you started. The situation is far more complexed if you are still calculating it the traditional way. Running an in-house payroll process not only requires additional use of resources but also increases your operational cost and waste your employees working time. There is one way you can comply with the law while also save working time- that is through outsourcing. Outsourcing your payroll process will not only help you save time but also help you enjoy the benefits that come with making payment to your employees on time. Fortunately, there are many proven solutions and agencies in Singapore that are willing to cater to your payroll processing needs.
Payroll outsourcing is simply hiring a third-party company to oversee the administrative and compliance functions of paying your employees. It is important to know that payroll services do not offer an employment record or hiring of an employee. Similarly, other aspects of employment must be handled internally or by suitable agencies. The question of when to consider outsourcing your payroll depends on several factors. Both small and large-scale firms can immensely benefit from outsourcing their payroll processing.
Why outsource your payroll process?
Let’s just say payroll processing is far more complexed now then it was once before. Payroll no longer means paying your employees. It is a part of an administrative task and requires well-trained staff. Payroll processing can be costly and time-consuming when it comes to hiring well-trained staff and/ or concentrate your company’s resources on a task that can simply be outsourced. Outsourcing payroll processing will help your company use its resources efficiently elsewhere and reduce overall cost that was incurred otherwise.
Benefits of hiring a third-party payroll service in Singapore
As mentioned above, payroll processing is no easy task and is often far more complexed. Hiring a third-party payroll service in Singapore can be beneficial in more than just one way.
Use time for other core functions of a business
Payroll processing might not seem as important as marketing. It can be outsourced to save you some extra time that can be invested back into the business. How? Surprisingly, payroll can be time-consuming and result in less time for other core activities of a company. There is also a range of laws aimed at employees. Complying with them is a necessity now. Having your staff concentrate on minor details to comply with labor and employment laws in Singapore can be a tiring task. It would also mean that your staff will have to put in extra time and effort that could have been used on other necessary tasks. Hence, outsourcing payroll processing to a third party can help you and your staff concentrate on other core activities of a business.
Access to Technology
Investing in technology to bring a change every now and then can be expensive and costly. By outsourcing payroll processing you can now bring change only that you won’t be directly paying for it. The third-party will be responsible to keep up with the latest technology and hiring experts to operate it. Moreover, technology can be extremely useful especially when it comes to performing mundane tasks. Payroll processing can be boring. Outsourcing such tasks can be beneficial especially when it comes to motivating employees. It also means that you and your employees can have access to electronic as well as carbon-based hard copies of payslips whenever they want. Outsourcing payroll processing does not seem like a bad option now!
Cut down on risks and costs
Having an outside party do your payroll can save on costs and minimize risks. In Singapore, most companies end up over-paying their employees by a margin of 4 percent. The reason is poor data keeping and inaccurate employee time records. By keeping timely and accurate records you can save a lot in terms of both the risk and cost. Companies that do in-house payrolls are most subjected to paying penalties due to errors and violations.
Access to a number of other services
Your in-house staff can only do so much. Outsourcing your payroll processing means you can have access to a number of diverse skills all under one roof. Apart from the usual bookkeeping and typical payroll processing, you get access to a number of value-adding services such as labor law compliance, accounting advanced payroll and other HR services. Moreover, these third-party organizations ensure that their records are in accordance with the industry-wide standard.
Most organizations would think it is smart not to outsource their payroll processing to third-parties because they are costly. Nonetheless, outsourcing can actually help you save on plenty of hidden costs.
Why Outsource payroll?
Singapore is now a hub for major industries and therefore, provides huge employment opportunities. It also means that industries are in severe competition with each other. They are striving every day toward achieving productivity and cost-efficiency. To focus more on other business functions or to simply increase efficiency, companies are willing to outsource their routine tasks. Payroll processing counts as one such task.
Why outsource payroll services in Singapore? Payroll service providers offer an attractive alternative to in-house payroll processing. A good payroll service company can provide simpler means of paying your employees, filing CPF and performing a bundle of other duties. They can help you in making fewer mistakes and errors while performing payroll and use technology for efficiency. This is one reason why organizations are becoming increasingly dependent on a payroll company to enhance their HR and payroll processes.
Being the owner of a small company means you are responsible for carrying out almost all of the functions of a business. Outsourcing a few tasks can prove to be beneficial especially as it will give you time to focus on performing other activities.