Handling payroll can be exceptionally intricate, difficult, and very time-consuming, especially for SMEs. An extensive amount of time and resources are needed just to process the payroll of a small business, and it can become quite overwhelming with all the rules regarding taxes, fees, unemployment and any other government regulations.
However, here are five quick and easy tips that can make your company’s payroll process run more smoothly and with much less stress.
Tips for Managing Your Company’s Payroll
1. Source A Good And Reputable Payroll Company
It is important that you find a good and reputable payroll company to manage your payroll. The best way to do this is by doing your research online and reading reviews from past clients. This will ensure that your payroll is handled efficiently and flawlessly.
A payroll company will be fully knowledgeable of all the various requirements and regulations which have to be met in order to be effective and to stay on the correct side of the IRAS. In addition, a reputable payroll company can make the management of your payroll much easier, as they will make use of an online payroll system. These systems allow you to access and update your employee information quickly and easily, as well as generate payslips and other reports automatically. By centralising your payroll in one location with one single payroll company, it will make it easier to track and manage all of your employee data effectively.
Online payroll software, like Xero, makes the process of managing your employees’ paychecks much easier. It automates the entire procedure and helps you stay organised. A successful payroll company will also ensure they keep track of all changes to labour laws, which are constantly changing. This will especially help with ensuring that you are paying your employees properly and meeting all government regulations.
Payroll companies also offer additional services such as PAYE reporting, staff loans and drawing of advances. If you need help with these processes, consult your chosen payroll company, as they may be able to offer these additional services at an added cost.
2. Decide On The Frequency Of Pay Runs
You need to decide on the frequency of your pay runs before starting the process with a payroll company. This will determine how often they will need to prepare and submit the payslips to the Inland Revenue Authority of Singapore (IRAS). When processing paychecks, it is helpful to draw up a timeline which outlines when each step needs to be completed. This will help ensure that nothing falls through the cracks and that everyone gets paid on time.
3. Provide Accurate Information About All Relevant Employees To The Payroll Company
The more accurate the information you provide to your chosen payroll company, the easier it will be for them to carry out their duties. Make sure you include all relevant employee details such as name, date of birth, national registration number, etc. Always keep track of changes in employee particulars and update the payroll company immediately. Also, make a note of all the statutory requirements for payroll management in Singapore to ensure you adhere to them and provide all the relevant details for the same.
If there are any changes in an employee’s particulars (e.g. marital status, bank account number), you must update the corresponding personnel file and notify your chosen payroll company immediately so that their records can be updated too. It is imperative to set aside time every week to manage your payroll information and corresponding pay runs to ensure that employees are paid correctly for the time they have worked and payments are made into the correct bank accounts. Dedicate at least one hour every week specifically for managing your payroll and the related information of employees. This will help keep everything running smoothly and prevent any last-minute rushes or mistakes.
Making use of a payroll company’s cloud-based system for your payroll process will most certainly make it easier for you to access and manage your data from any location or device. Do not forget to use secure login credentials for accessing your payroll data. This will help to protect your data from unauthorised access or theft.
4. Prepare For Tax Season
Tax season can be a busy time for employers, so it is important to start preparing for it well ahead of time. This includes gathering all the necessary documents and calculating how much tax needs to be paid. Your company’s payroll consultants will be able to guide you with what is required and when, but it is important to begin and prepare well in advance to avoid errors and, therefore, penalties. In addition, automating as much of your payroll as possible will help save you time and money. This includes automating tasks such as tax filing and paycheck printing.
It cannot be stressed enough that all deductions for employees need to be managed correctly and without error. Employees’ pay can often be reduced by various deductions, such as CPF contributions, income tax and withholding taxes etc. It is important to manage these deductions properly so that employees receive the correct amount of net pay each month and to ensure that all tax is correctly accounted for.
5. Educate Employees About The Company’s Payroll System
It is absolutely vital and imperative to educate and train your employees about their responsibilities when it comes to your company’s payroll, as this will always ensure accuracy and compliance with statutory requirements. This includes ensuring that they know how to submit timesheets correctly and understand what deductions are made on their paychecks. In addition, it is important for the company to keep track of staff absences so that you can ensure that employees are paid correctly for the time they have worked and that they are aware of what is expected of them and how they will be paid, should they be absent. Keeping track of staff absences can be done by manually recording absences in your payroll system or by using an Attendance Tracker app.
Employers must remain compliant with labour laws in order to avoid penalties and fines, and it is wise for the company, in order to remain compliant to ensure their employees are aware of any changes or what is required of them. Some key compliance requirements include the filing of monthly employment returns and the provision of workplace insurance coverage. Remember! You cannot simply try to do everything yourself, so it is important to keep employees educated and delegate responsibility wisely within your company. This means assigning tasks such as data entry and bookkeeping to qualified and knowledgeable employees to ensure your business can be a successful one.
We hope these 5 tips have been helpful and would like to remind you to always remain prepared for emergencies, as unexpected things always seem to happen when you least expect them. It is, therefore, important to have a backup plan ready just in case something goes wrong with your payroll.
To manage your payroll effectively, you need to make sure that you have the right tools, people and processes in place. This includes software that can help you track employee hours and pay rates, as well as online tax filing software. Remember to regularly back up your payroll data in case of accidental loss or damage, and periodically review your payroll processes to ensure they are still efficient and compliant with current regulations. Outsourcing the payroll process has a lot of benefits, and you should surely give it a try to ensure you face no hiccups and always stay on track.