Benefits Of Outsourcing Payroll In Singapore
The world of business is fiercely competitive and frequently changing. Aside from having robust strategies and remarkable business insights, companies need to acquire proper payroll function. It is well-known that one of the major headaches for most organizations is getting payroll services and since the workers are the most crucial asset an organization can have, it is essential that you pay them on time just the way you pay taxes to the government.
In truth, the task may seem daunting when you are doing it alone, but that does not mean it is impossible. It requires plenty of time, expertise and effort depending on the size of the organization and number of employees. You have to familiarize yourself with the latest tax reforms, which could turn out tobe tedious and mentally draining task that could lead to ultimate frustrations.
Therefore, the most effective way of managing payroll is outsourcing the task to a licensed,reputable, and reliable outsourcing companies. So, what are the benefits of outsourcing payroll?
Regardless of the number of employees in any organization, they must all be paid on time. Payroll is a time-consuming process especially if you are not an expert. Keeping track of the garnishments, federal regulations, paid time offs, benefit deductions, terminations, and new hire changes can be mind-boggling tasks that only the skilled can manage.
Some organizations prefer to create an in-house payroll office in the company to assist in payroll. However, it is not any more natural as it will require utmost keenness to detail and consistent, reliable information from the Inland Revenue Authority of Singapore(IRAS). A lot of time and resources are wasted to make sure that no errors are made when handling a considerable amount of data which varies from one employee to another.
When you outsource this work to a reliable outsourcing company, you only need to contact them for approval which ensures that you do not waste your energy and time going through documents to make sure that everything is in order. The outsourcing company virtually does everything for you including helping you cut on costs and limit multiple risks. This way you get time to focus on other critical areas of the business.
Saves on resources
Some companies prefer to have an in-house payroll office where the company manages everything. Well,this may be a good idea for a big company with unlimited resources. However,maintaining a payroll within an organization with very few employees can turn to be a costly affair. You will require costly resources like stationaries, a well-maintained office, printers, and competent payroll workers.
When you try to compare the cost of running an in-house payroll function to the cost of hiring an outsourcing company, you will be surprised at how economical outsourcing could turn out to be. Remember every working hour you waste verifying the authenticity of your payroll employees and the documents they submit to you; is money and time lost which could be well used to generate more money.
Do the math, calculate the amount you are using when you work on your payroll or when you have an in-house payroll service in the company and compare the figures with other several payroll service providers. Outsourcing companies do not have excuses,sick leave resignation, vacation and another employee off days which could tamper with the company’s payroll services.
No revenue penalties or errors
When running an in-house payroll service, the chances are that you may encounter errors due to incorrect filings. It is easy to err when you have new employees who are not yet conversant with the system or when you fail counter-check the filings before submission. The real trouble comes in when you are late. Late payment of taxes and workers is a sign of disorganization.
If some of your payroll employees are on leave or decides to leave at a time when payrolls are supposed to be due, you are most likely to land in trouble with the government. Your workers will not encourage late salaries and may decide to leave, adding more financial stress. Such costly mistakes lead to painful penalties and audits—a situation you don’t wish to encounter. Inland Revenue Authority of Singapore (IRAS) keeps changing regulations,and it is up to your team to retain the updates as soon as they come in.
A reputable outsourced payroll service provider has adequate staff to manage the tight deadlines and smart employees who receive updates from IRAS and key them into their systems.They are also less likely to make small mistakes as they are experts and if it happens diligent providers assume the penalties and take full responsibilities.If your organization is big, you are also bound to face errors and late payments if the employees are incompetent.
Payroll processing is not only a complex task but a potentially risky business operation. There is always the risk of identity theft, embezzlement of funds or worse tampering with company files for selfish gains. There is also the risk of data theft when using in-house payroll software. The company’s information is never safe when the individual owners are right there. Unless you are managing the payroll yourself, then the company data is at risk of getting hacked by malicious individuals.
When it comes to outsourced companies, they have safer servers that use high-end encryption technology along with redundant data backups. Your data is securely stored and well -managed, and only you and a few individuals in the company may be allowed access.
No technology headaches
It is apparent that technology keeps changing and payroll software is no different. Organizations with in-house payroll function have to work extra hard to keep their systems updated every time there are changes, which could be time-consuming and challenging. Outsourcing companies, on the other hand, have highly knowledgeable workers who help keep the updates in check by adding the latest technological developments in the payroll software. If you hire them, you do not need to worry about updates or late payments due to failing to update the software.