As you might be aware, Singapore is one of the few countries without a minimum wage, despite the fact that this has been a frequent point of contention for some leaders. The minimum is eight hours a day and forty hours a week. The payroll management system can be a stressful responsibility, particularly as your business grows. Typically, with a monthly wage, Singapore requires the provision of an itemized payroll management system.
If you work as a payroll Singapore professional, you can accept that payroll processing is never an easy task. You have a number of factors to remember, and it requires considerable administration. Nonetheless, a payroll management system is critical for the growth of your company. A payroll specialist’s responsibilities include collecting and reporting payroll components to ensure that the Singapore corporation complies with the criteria for calculating and disbursing wages, and payroll management is handled with the utmost care and accuracy.
The payroll management system can be a strenuous task, even more so when your company contributions in Singapore continue to rise and your employee headcount does not. From processing and publishing payroll components to adhering to Singapore regulatory requirements to calculating and disbursing wages, handling the business’s Singapore payroll should be handled with the utmost care and accuracy.
How to ensure that payroll management is good
Payroll Singapore company administration encompasses more than just maintaining a list of workers and the amounts they should be paid. It extends beyond familiarity with personal income tax reporting and compliance with Singapore legal requirements. If your company is expanding in Singapore, the guide below details everything you need to remember and keep in mind when handling your payroll management system:
- Salary is made up of basic pay and deductions such as food, transport, and housing. Typically, it refers to the wages charged for the work responsibilities specified in the employee’s employment contract. Additionally, it excludes other expenses incurred when operating and benefits associated with retrenchment.
- Salary payments should occur at least once a month, although shorter payment intervals are also possible. Employers are required to make payment within seven days of the compensation period’s conclusion. Nonpayment is a crime.
- From 1 April 2016, Singapore’s Employment Act mandates all employers to provide workers with itemized payslips. The payslip must provide the following information: the employer’s and employee’s full names, the date of payment, the employee’s basic salary, the salary duration, benefits, additional payments, deductions are taken, overtime pay and the overall net salary charged. Failure to comply can result in a fine.
- Employers are required to maintain employee records. All workers’ full employment and pay records must be kept in the register, and the company must retain documentation for ex-employees for a year after they quit.
- Employers are required to pay workers a prorated portion of their wages for uncompleted job months based on the number of days employed.
- Employers must determine the appropriate overtime pay, which should be at least 1.5 times the hourly basic wage. This payment should be made within 14 days of the last day of salary.
- All businesses must comply with legislative reporting requirements. Employers with seven or more workers who have received the electronic filing notice for employment income must send their employees’ income details to IRAS through the myTax Portal beginning in the Year of assessment 2020. Year assessment 2020 refers to income earned from 1 January 2019 to 31 December 2019. Employers should begin submitting Employment Income Records on 6 January, with the annual deadline of 1 March.
Payroll Singapore entities are required to strictly adhere to mandatory levies, CPF contributions, and other regulatory provisions. Apart from CPF (Central Provident Fund) contributions, all employees are required to make the following monthly contributions:
- CPF Board collects the Skill Development Levy, abbreviated as SDL, on behalf of SSG (SkillsFuture Singapore Agency);
- Contributions to Self-Help Groups (SHGs) – ethnic Funds with the mission of assisting the less fortunate in their respective ethnic communities, such as the Chinese Development Assistance Council (CDAC) Fund, the Eurasian Community Fund (ECF), the Singapore Indian Development Association (SINDA). For foreign employees, monthly levies are needed.
Avoid these payroll accounting mistakes
The payroll management system’s success does not require just correct processing. Additionally, it necessitates proper maintenance, prompt disbursement, and strict adherence to regulations. As a result, many Singapore small and medium-sized businesses use cloud payroll software to automate their payroll processes and enable workers to use the self-service human resources portal. Continue reading to learn about the common errors you must avoid.
Maintain current and correct employee information
Payroll Singapore entities are required to adhere to it at all times. Maintaining current employee records is critical for reliable company data processing. A single error, such as being unable to change the incorrect account number for an employee in the database, will result in costly errors, time-consuming processing, and, sooner or later, employee confusion.
Payroll staffs that are untrained and human mistakes
Some firms choose not to outsource payroll services in order to save money. Unfortunately, the human factor inherent in payroll processing systems or any other management system often results in costly mistakes such as miscalculations and non-standardized computing procedures.
Salary payment plan that is irregular or overdue
To keep employees happy and loyal to your company, you must maintain their morale. You must instill in them a sense of pride in their work and company. That means ensuring effective payroll control, meeting deadlines, and performing accurate calculations.
The broader perspective
To have good payroll Singapore procedures, an employer must employ correct wage and payout processing, proper system maintenance, and timely payment of salaries. As your company expands in Singapore, its headcount and profile will rise as well, and you will find it difficult to manage internally at that stage. Payroll processing and management would take a significant amount of time, energy, and effort. WLP Group provides hassle-free and cost-effective payroll management services for your company. Give it a shot and contact our payroll team for additional details or visit our website for more details.