Payroll is a key part of every business – it is the financial record of the salaries, wages, bonuses, net pay, and tax deductions of a company’s employees. Any business owner, human resources or accounting personnel who has managed or processed payroll will describe the process as a time-consuming one. Much attention to detail has to be paid to keeping track of statutory regulations, ensuring compliance, accurate calculations, and timely payouts.
In Singapore, the Employment Act outlines the rights and duties of an employee under a contract of service with an employer, with the exception of seamen, domestic workers, civil servants and those in managerial and executive positions. Amendments to the Employment Act are regular and are rolled out after review of the Act and the conducting of public consultations. Most recently (as of 1 April 2016), an Amendment to the Employment Act made it compulsory for all employers to make and keep employee records, give written records of key employment terms (KETs) and give itemised pay slips to employees. Breaches of the requirements could result in heavy penalties.
How do some small businesses make sense of the regulatory nuances, pay employees in a fair and timely manner and yet reduce the amount of time spent on payroll processing? Simple. They outsource their payroll to a knowledgeable, reputable and professional payroll vendor. Here are a number of benefits you as a small business owner enjoy when you outsource your payroll management:
1) You save time
Payroll is a notorious time-eater, regardless of the number of people employed by your business. Salaries and wages have to be paid every month – this means critical amounts of data that varies from employee to employee needs to be inputted and double-checked constantly. This constitutes time taken away from strategic tasks and core functions that directly affect a company’s bottom line – sales, marketing, customer service, workflow efficiencies. Outsourcing payroll immediately frees up precious time. Employers need only make contact with the outsourced payroll specialist or vendor when the time comes for approvals to be given.
Read more about outsourcing payroll at Rikvin.com.