If you’re a budding entrepreneur or an established company already, you don’t only think of how you make a profit, but one must think about your business’s other factors. Employees are vital to everyone’s business, and their finances should also be well taken care of by the company. Having proper, or should we say, excellent payroll management in Singapore is vital to your employees and your company.
Payroll management is simply the proper way of handling your employees’ finances. Finances would include any monetary means they are receiving, such as salaries, bonuses, incentives, deductions, and net pay. Every employer must keep these things under the law of the country where the business is located.
In Singapore, employees have no minimum wage requirements. It is one of the countries that does not set such an amount for the task or work employees would get. Business owners must note the following things to come up with excellent payroll management methods for the company:
Salary should be clearly defined as money being paid for a work or task done under the contract being signed by both parties. Food or meal, traveling, or housing allowances are not included.
Salary should be paid once a month, and employees should receive it 5-7 days after the end of each salary month period. Failure to do this is subject to an offense according to law.
Based on the Employment Act enacted on April 1, 2016, employees’ salaries should be itemized. It should include the date covered by the salary, date, base pay, overtime, and other deductions. Employees should have a printed copy of his/her pay slip. If a company fails to do so, it will result in a fine at the employer’s end.
Every employer must keep an employment record of their employees, both local and foreigner, for tax purposes. Employees’ records who no longer part of the company should be kept only for a year. An employer must also note that laws for the local workers are different from the laws applied for foreign workers.
If the employee has incomplete work or fails to complete his/her work, it should be prorated and must follow the computation formula for prorated salary. It should also be stated in the contract.
Overtime pay should be paid accordingly.
Overtime pay is simply the payment for the work done more than the regular work hour. In Singapore, 72 hours is only allotted for overtime per month. Employers in Singapore must well take note of these too.
- Employers must file their employment income via online to IRAS. To this, the company should be registered to AIS (Auto Inclusion Scheme) on IRAS on myTaxPortal together with their Corp Pass.
- Every employer in Singapore, must mandatorily pay some levies, contributions, and statutory requirements. Each company should take note of the following:
– (CPF) Central Provident Fund the different ethnic funds aiming to help indigent people in Singapore
– Skills Development Levy for the workers CPF for National Servicemen of Singapore, for their Periodic Training Monthly levies for the Foreigners employed by the company
Since 2017, IRAS requires to file employment income electronically every 1st day of
March each of every year. Some of the following payroll management mistakes were committed by several employers who do payroll management in Singapore. Take note of these for you not to commit and cause trouble for your employees and company.
Keeping inaccurate records of the employees, especially like their account number and records of their finances. These are vital, especially for filing taxes to the government.
It is employing staff who are inexperienced in doing such tasks that would sometimes lead to human error causing a lot of problems to the company and its employer. Some small businesses tend to hire people to do this job instead of outsourcing or acquiring software that will do the job.
Happy employees equate to being more productive. Giving them their monetary gains at the end of the month is one requirement we need to deliver on time. If the payroll management failed to deliver on the schedule, this would lead to a delayed or irregular payment schedule.
Vital and personal information of employees is compromised, employers must protect the personal information entrusted to them by their employees. Most of the time, when payroll management is being handled by an in house staff of personnel. There’s a possibility of compromising the personal information of the employees and confidential files of the company.
Payroll management in Singapore should involve good maintenance and timely delivery of the necessary finances to employees and the government. Payroll management in Singapore is not complicated as long as they know how to do it right by having qualified people set it up. Big companies can enjoy focusing on essential matters of the business when they outsource their payroll management.
Outsourcing payroll management in Singapore is possible. They can have qualified people in the field, setting it up hassle-free for them. Outsourcing would give them a lot of time concentrating on the different aspects of their business. Payroll management set up by experts will result in a well-established and productive relationship between the employer and its employees.
Numerous companies can help, but WLP Group takes the edge in offering this service to their client. Competent people will help you in building an accurate and well-maintained payroll management. More time will be spent on different aspects of the business. WLP Group will not only set up your payroll management but will help you manage it well. Payroll management will be less stressful and will buy you and your company time for more meaningful ventures.
Good payroll management in Singapore keeps employees motivated in your company. Motivated employees are more productive and driven to commit to their goal, mission, and vision. Good payroll management will result in a good relationship between your company and the government today and the future.