The businesses often find the task of payroll processing to be cumbersome and draining as it requires a high level of concentration and time. It is wrong to assume that payroll is simply calculating salaries and writing pay slips of the employees. But the truth is that payroll services Singapore encompass a host of functions such as calculating benefits of employees, preparing reimbursements, leave management, calculating increments, processing statutory deductions, working on full and final payment settlement for terminations and resignations and so on.
Save Time & Cost
Many companies prefer the outsourced payroll services Singapore as working on the host of payroll functions on their own may incur a hefty of cost. Managed by highly qualified and experienced accountants, payroll consultants and HR professionals, such payroll firms help your company save a substantial amount of time and money. By handing over the non-core tasks like payroll processing to a third-party, you save your precious resources whom you can redeploy on profit-generating tasks of the business.
In addition to cost/time savings and the improving efficiency, the quality of your Singapore payroll will also be enhanced as the aspect is now handled by the specialists. Being highly knowledgeable in the areas of payroll and allied fields, these professionals can identify the potential errors and weaker areas of your payroll. They ensure to improve these areas to prevent any undesired results.
Compliance Matter Solved
The Ministry of Manpower (MOM) of Singapore decreed all companies to generate itemized pay slips for their employees under the Employment Act. Not all novice employers have the sound knowledge on this payroll aspect, and any ignorance may result in non-compliance.
However, the professional accounting services Singapore can help in this regard through outsourcing. They stay abreast of the latest payroll related regulations of the authorities. They know how to meet the statutory obligations in the best way. Failing to comply with any obligation can result in serious penalties of the authority.
Gain Access to Technology
The small and medium-sized businesses could hardly think of shelling out a whopping amount money in investing a high-tech payroll software. They will rather invest the money on other core activities of the business than installing the software which has an alternative option (manual process). However, the manual process is prone to errors, and it is not as efficient as the software.
Thanks to outsourcing, it allows the small and medium business to get access to the world of technology. They use the software to handle your Singapore payroll services tasks as the tool ensures high accuracy and reliability in the output.
Losing Control over Payroll Task
Handing over the payroll task to a third-party firm means you are likely to have less control over the financial information and confidential data of the payroll. The data could be less accessible to you as it will be stored on their secure server. Negligence towards guarding the system may pose a threat to the data. It may also leave the data vulnerable to theft, mismanagement and employee lawsuits.
However, a good accounting firm in Singapore ensures to protect and respect all your confidential data by implementing secured access to the authorized users only. The data will be stored and protected by taking encrypted measures.
Whether to outsource the payroll service Singapore or not, this critical decision must be made by undergoing a critical research and well-thought plan. The above analysis suggests that the benefits of outsourcing outweigh the pitfalls. Once you decide to outsource the task to the third-party, make sure to set guidelines on which tasks to be outsourced and also prepare the checklist to be followed by the services provider.