How outsourcing works with Singapore companies that outsource payroll function
Why should you outsource your payroll processing? Of course, the first most important thing for you is to ensure that employees are paid on time, all the time. The good thing is that the payroll outsourcing companies will not disburse the funds unless you authorize. Therefore, you will be very much in control of your funds and how they are disbursed.
The payroll outsourcing service providers company will ask you to authorize, but they will give you variance and reconciliation report so that you can check everything out before you authorize the disbursement of the funds.
How payroll outsourcing works in Singapore
After finding your preferred service provider to outsource your company’s payroll functions to, you will need to understand how the process works, from the preparation of the payroll to the actual disbursement of the funds.
First, most payroll outsourcing company will accept the human resource management system report and if everything is in order, they are going to process the payroll. It will then be presented to the client for approval and if approved, the clients will be required to remit the needed amount of funds in the account of the payroll outsourcing companies. However, should the customer decide to do the fund disbursement directly, the firm will send them the necessary bank files so that they can pay their employees easily and fast. If the third party service provider outsourced payroll company is doing the disbursement of funds, they will assure you that they will do it on or before the due dates. They will then file and return the payment receipts for safekeeping and future reference, either through the offline traditional method or via advanced cloud technology.
For the end of the year processing, the client will be required to submit all benefits in kind and any more items related to the salary because of tax declaration. As well as prepare the necessary forms for the Inland Revenue Authority of Singapore (“IRAS”), the appointed firm performing payroll functions will also help in the preparation of the employee’s IR8A forms on the employers’ behalf that are required to the tax regulators and authorities.
Selecting and appointing Singapore payroll outsourcing companies
Because Singapore is the biggest business hub in South-East Asia, there are many payroll outsourcing companies there and you will be spoilt for choice. It is important to know what the payroll outsourcing firm that you have contracted can or cannot do. For example, most of them will have SAAS but they will not customize it for you free of charge. Rather they will treat it as another job.
Also, most payroll outsourcing companies in Singapore do not place their people on-site. They will process payrolls at their centres with their own teams. Therefore, check carefully before you engage the services of any outsourced payroll accounting firm.
Things to Consider for services of an outsourced payroll company provider
At J Accounting Services, we have specially designed payroll services. This is basically targeted towards small and medium sized enterprises who are too busy growing their businesses in other aspects. With our payroll services, you would be able to build your business in the best possible way and outsource these admin matters to our care.