Being a business owner, one of the first things you learn is how to pay your employees. Your employees empower business profitability, and in return, you pay them a salary or hourly wage for their contribution.
Effective payroll in Singapore requires making sure your employees receive their correct payment on time, and in compliance with Singapore employment law. But, without the right tool and resources, payroll can be filled with errors and mistakes that can cost employees and your company time and money.
Learn More: What are the Different Elements in Payroll Management
So, to meet your employees’ expectations and avoid any payroll mistakes, here are some errors you should look out for.
Inability to accurately update employee details
Employee details are the most important factor in processing payroll in Singapore that should be accurately tabulated at all times. A wrong account number or an un-updated change in the benefits of your employee can result in mistakes that are time-consuming to rectify. This in turn can also frustrate and demotivate your employees.
For example, if your employee who is holding an Employment Pass has changed their status to Permanent Resident, this information should be immediately updated as this would affect their CPF deductions and contributions. Similarly, contract or part-time employees, employee benefits, leave entitlements, benefits and others have to be accurately updated in a timely manner in the database.
Irregular/delayed salary payment schedule
Paying your employees’ salaries on time is essential as it keeps up productivity and morale in your business. When you miss the salary payment dates, you’ll receive complaints and possibly legal warnings from your employees, especially when their livelihood depends on a regular paycheck.
Timely CPF payment is also important to avoid any non-compliance penalties which will incur additional costs to your company. Delayed payments can also affect your employees’ expense plans and GIRO arrangements. With frequent irregular salary payment schedules, your company’s account will be greatly affected as well as the trust your employees have in the company.
Compromising employees’ personal and confidential information
When it comes to your employees’ personal and financial information, security is definitely a serious concern. These information should never be shared or disclosed to anyone outside the payroll team, HR department or upper management. It is extremely crucial to maintain this confidentiality and handle your employees’ payroll in a safe and secure manner. If such information is compromised, your employees are open to identity theft and more!
Outsource your payroll function to reduce the chances of mistakes
Fortunately, all these mistakes can be prevented with the use of a proper payroll management system via a trusted payroll service provider. This system is mostly automated through time tracking, electronic submissions, and cloud-based document storage which removes and reduces physical errors. A payroll system would also help to track and calculate work-hour records as well for those who are paid by the hour.
Also, as employment regulations, data and compliance requirements and tax legislation can be complex and are prone to change from time to time, you can avoid penalties and mistakes by outsourcing your payroll services in Singapore to a team of experts who are required to keep track of changing regulations and will maintain records and data accurately. On top of that, identity theft can also be avoided as most payroll management systems are hosted by a secure and reliable web service.
So, if you would like to avoid these common payroll mistakes and other complications and complexities of payroll in Singapore, then outsourcing your Singapore payroll management to a service provider is what you should do! At Paul Hype Page & Co, our payroll management systems are one of the best when it comes to hassle-free processes. Do speak to our experts to know more today.