PAYROLL IN SINGAPORE: WHAT FOREIGN EMPLOYERS NEED TO KNOW
If you’re a foreign business owner in Singapore, there are 3 key things that you’ll need to know when it comes to payroll in Singapore.
1. Employee Central Provident Fund (CPF)
The CPF is one of Singapore’s mandatory social security savings scheme where both employees and employers contribute based on the salary. The employee is expected to contribute 20% of its gross salary, while the employer will contribute 17% of the employee’s gross salary.
2. Community Funds
Aside from the CPF contributions, every employee is required to donate a small amount based on their monthly total wages to self-help groups in Singapore, unless they withdraw.
3. Tax Clearances
It is also Singapore employers’ obligation to do income tax clearance for all employees via Form IR8A. The Auto Inclusion Scheme (AIS) is also mandatory for all companies with 5 or more employees – all employers must submit their employee’s employment income for each year.
IMPORTANCE OF SINGAPORE EMPLOYMENT CONTRACT
The Singapore Employment Contract is a critical aspect when hiring local or foreign employees in your company as the Employment Act does not fully cover every employee.
PAYROLL SERVICES IN SINGAPORE
We cover end-to-end payroll services in Singapore, including consulting and drafting of your employment contract to ensure all parties are well-covered.
- Computation of gross and net salary
- Partitioning of all contributions
- Monthly & yearly reporting
- CPF registration & GIRO setup
- Payment of salaries and CPF with pay slips
- Submission of Auto-Inclusion Scheme (AIS) with IRAS
- Preparation of annual IR8A forms for tax submissions
- Preparation of IR21, National Service Make-Up Pay (NS MUP), GML & CPF Refund
SINGAPORE PAYROLL MANAGEMENT: KEY THINGS TO NOTE
To ensure that employees are well-protected, employers in Singapore have to fulfil these 6 requirements for a successful payroll management and avoid facing penalties from non-compliance.
REASONS TO OUTSOURCE PAYROLL IN SINGAPORE
- Avoid complications and complexities of payroll in Singapore
- Peace of mind with payroll services that are fully compliant with the regulations
- Stay updated with the latest legislative changes to the Employment Act
- Worry-free payment to employees according to the breakdown of CPF, funds, etc.
- Save time settling payroll and focus on revenue-generating actions
- Reduce long-term overheads of hiring a full time employee and training them
Singapore Payroll Outsourcing FAQs
PAYROLL IN SINGAPORE ARTICLES
Supplement your existing knowledge with additional insightful readings that we’ve crafted based on our 14 years of experience.
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