Payroll Outsourcing Companies Singapore

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

  • What exactly do they do for you? Do they offer online payroll? They will process overtime payments, allowances, new hires, resignations, reimbursements and deductions. After processing all the data, they will then check and validate everything before the client can authorize the payroll.
  • Where do they draw the line? The payroll companies will not offer taxation or HR advice. In fact, they will draw a distinct line between what they can deliver and what they cannot right from day one. In addition, they will only disburse funds on behalf of the client, only if the client remits the needed funds. They will not pay first to be reimbursed later.
  • To be on the safe side, you can hire companies by considering the clientele that they serve. If their list of clients is made up of the who-is-who in business in Singapore, then you will be safe.
  • Consider working with payroll providers only if they offer online payroll. That means that your data is updated automatically and that when they leave, you will not have to buy other software. In addition, they will upgrade their systems from their side while you and your people can access the data from everywhere in the world.
  • Price is very important. Why should you pay more when you can pay less for the same services elsewhere? Compare the prices and the features offered by several companies so that you can choose the best one.
  • Finally, consider companies that offer the following services such as calculating monthly payrolls, calculating statutory deductions like skills development levy, foreign worker levies, religious/ethnic fund deductions e.g. CDAC, MBMF, SINDA, ECF etc, annual reporting, issuing and maintaining electronic reports for remuneration and even payslips, registration of the employer with Central Provident Fund of Singapore (CPF Board).

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.

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