Employees are an important asset of a business. Disbursing their salaries on time and maintaining good payroll practices contribute to positive employee experience.
However, running a well-managed payroll process in-house can be daunting and expensive for small businesses and early startups. In today’s environment of shrinking budgets, even large firms are under the pressure to cut down their operational costs. Payroll management can be an expense they can easily cut down by outsourcing to payroll processing services.
Here is all you need to know about what payroll outsourcing is and why you should consider hiring a payroll outsourcing service in Singapore for your business.
What are the Tasks Involved in Payroll Outsourcing?
There are a lot of paperwork and compliance laws to follow when running a business. Added to that is the hassle of payroll management. When you choose to outsource this particular aspect of your business, you will see that most outsourcing companies provide services like managing employees right from the point of hiring. They handle paperwork related to employment, salary calculation, insurance, HR management, taxes, and more.
You can sit back and focus on other core aspects of your work once you hire a payroll outsourcing service.
Some of the services a payroll outsourcing service provides are:
- Preparing checks and salaries
- Managing attendance system
- HR administration
- Ensuring compliance according to local laws
- Employee insurance management
- Salary report management
- Charting holidays
- Calculating incentives
- Tax management
- Prepare employment paperwork
Reasons for Payroll Outsourcing
Payroll management is inevitable for businesses of any size. However, it may not be a cost-effective process. It involves dedicated staff, continuous training, software purchases and updates…the list of expenses can be long. A cost-saving alternative to maintaining in-house payroll management is outsourcing to an external payroll service provider in Singapore.
There are some very compelling reasons why outsourcing to an external entity is highly beneficial for your company. Let us talk about some of them.
Always Stay Compliant
There are specific laws in Singapore for employee regulation, salary disbursement, work hours, basic wages, tax rates, and more. The laws and regulations change with time and it can be hard to keep up with them. Following up with these to ensure compliance can be a stressful task. However, choosing to hire a payroll outsourcing service means you are entrusting this with a firm. Payroll outsourcing firms follow regulations to the dot and are constantly updated on compliance matters. This means you do not incur penalties for non-compliance.
Switch From Manual Payroll Management
Moving from manual payroll management to digital can eliminate errors and make the process more accurate and faster. However, it can prove to be expensive for small businesses to employ the latest technology. But you need not miss out on the benefits it provides if you hire a payroll management firm. Most payroll outsourcing firms employ state-of-the-art technology to stay competitive and relevant. Technology like data management, artificial intelligence, automation, biometric attendance, employee assistance and more can be leveraged if you hire an external firm.
Cut Down Costs
One of the obvious reasons to hire a payroll outsourcing firm is to reduce costs. First, it cuts down the cost of employing someone just for this task. It also reduces the risk of errors are external firms are more professional and leave little to no room for error. Error in payroll management can have hefty consequences. Companies can be penalised if they do not carry out tax reporting. With outsourcing, it can be avoided.
Every data stored is vulnerable to breaches. Small businesses are targeted by cybercriminals owing to their size and possible lack of security measures. In the case of payroll management, this can be mitigated as payroll outsourcing firms are equipped with the best security measures to ensure data is safe. With the best encryption technology, you can ensure your employee’s data is safe from cyber-attacks.
Summing It Up
Companies of all sizes choose to hire payroll outsourcing as a viable option for their functioning. This improves their work efficiency, ensures timely payment, and tax filings, and ensures compliance with regulations. Due to the higher demand for such firms, there are a lot of options to choose from. But make sure you choose a trustworthy and reliable firm like Bestar to do your critical payroll activities. Contact us today to know all about payroll outsourcing services.