Payroll processes include more than just salary deposits. Payroll requires various time-consuming and meticulous tasks such as gathering employee data and calculating salaries, deductions, contributions, and overtime pay, all while adhering to necessary region-specific labor regulations.
According to an EY study that focused on companies with 250 to 10,000 employees, each payroll mistake costs companies on average $291, either directly or indirectly. With payroll processes in Singapore requiring such complexities, it’s not uncommon for organizations to run into manual errors, miscalculations, and missed deadlines in their payroll processes, in addition to the amount of time dedicated to carrying out the administrative tasks payroll requires.
This is where modern companies are turning to the payroll software Singapore offers to not only mitigate common payroll errors, but save time and budget to be redirected to impactful and strategic business initiatives.
The payroll software Singapore offers can help organizations solve for the various complexities payroll presents. However, selecting the right software depends on factors such as business size, compliance regulations, and integration capabilities. Here, we will examine ways to identify the right payroll software Singapore businesses can use to navigate the complexities of Singapore payroll.
Singapore Payroll Explained
Singapore payroll refers to the calculation and disbursement of employee compensation in Singapore. It involves various components, including salary calculations, deductions, contributions such as CPF calculations, and compliance with Singapore’s labor laws and regulations. The payroll cycle in Singapore is typically monthly, but some employers make weekly or bi-weekly payments depending on their business structure. Regardless of the payment schedule, businesses must pay their employees within 7 days of the end of the salary period according to Singapore law.
Benefits of Payroll Software Singapore
The benefits of an accurate and timely payroll system are apparent: happy and engaged employees. But the benefits of leveraging payroll software Singapore offers far more than you might expect. Let’s break down the various benefits businesses and HR teams can expect when leveraging payroll software Singapore.
Reduce common errors
With the payroll software Singapore offers, businesses can reduce common payroll errors such as misclassification of employees (full-time, part-time, freelancers, or contractual), overtime calculation errors, missing tax deadlines, overlooking deductions, tax miscalculations, and late or missed payments.
Payroll software Singapore automatically calculates employee salaries and wages, deductions, and taxes based on predefined rules and rates. It also accurately stores and manages sensitive employee information, reducing errors related to incorrect employee details that can delay the payroll process. Apart from automated payroll calculations, many payroll software solutions also offer time-tracking features, which help accurately record working hours and calculate overtime pay with ease.
In reducing manual processes and leveraging technology, organizations can save valuable time and money in the reduction of payroll errors while remaining compliant with Singapore laws to ensure a smooth payroll cycle year-round.
Payroll software ensures you don’t lose time manually collecting payroll data. Payroll software Singapore collects and centralizes all crucial and sensitive payroll data, including but not limited to:
- Employee information (name, address, social security number, and contact information)
- Salary and wage data (employee earnings, including regular wages, overtime pay, bonuses, commissions, etc.)
- Tax withholding information (details about federal, state, and local tax withholdings)
- Deductions and contributions (health insurance premiums, retirement contributions, and other mandatory deductions such as CPF)
- Time and attendance records (employee work hours, including regular, overtime, and paid time off)
- Payroll reports and payslips
- Year-end reports
- Compliance documents (tax forms, tax filings, and records of tax payments)
- Audit trails
After centralizing this payroll data, payroll software Singapore touches all relevant data points to calculate the final payment amount, free from errors and in a fraction of the time of manual calculations. Payroll software can also facilitate direct deposit payments to employees’ bank accounts, promoting timely salary disbursements and eliminating yet another payroll task for HR teams.
Limit HR administrative workload
Payroll software often includes self-service portals that allow employees to access their pay information, view digital payslips, and make personal updates such as contact information or banking details. Self-service portals enhance employee autonomy and significantly reduce the need for HR intervention, as employees can independently address many of their payroll-related inquiries and adjustments. With employees empowered to manage their own HR administrative tasks, People leaders are free to focus their efforts or impactful and strategic initiatives to drive business outcomes.
Speed up payroll processes
Whether you’re onboarding a new employee, facilitating salary adjustments, or addressing other payroll-related needs, payroll software Singapore helps HR teams streamline these changes. Manual processes such as data review and transaction monitoring are automated and digitized to greatly reduce the time it takes to calculate, administer, and oversee payroll for your organization, all while reducing (and often eliminating) payroll related errors, accelerating the process and ensuring accuracy.
Payroll software maintains up-to-date data by automatically syncing employee records in real-time. This means whenever you update information in your employee records, such as changes in personal details, tax exemptions, or employment status, your payroll software automatically syncs this data for accurate records at all times. Such seamless updates help guarantee that all payroll calculations and transactions are based on the most current and accurate employee information, eliminating the risk of errors associated with outdated information.
Further, payroll software Singapore makes pulling data to review payroll information such as personnel costs fast and accurate, making it easier to determine business outcomes and make strategic decisions based on real-time data.
What to Look For in Payroll Software Singapore
Selecting their payroll software Singapore businesses should consider various aspects and capabilities to determine the solution that will best serve their organization. Automation capabilities, reporting features, compliance, and data security are among some of the features that should be considered. Let’s discuss these features and their benefits in detail.
Automation of payroll calculations
Payroll calculations can be time-consuming and prone to errors when done manually. With payroll software Singapore businesses can automate the entire process, saving HR professionals countless hours each pay period. While some outsourcing services offer calculations from accountants, other software automates complex calculations for employee salaries and wages, including regular pay, overtime, bonuses, and deductions, helping ensure reduced manual entry errors and miscalculations while speeding up the process for swift payroll every pay period.
Employee self-service portals
When selecting any AI tool for HR, the main focus remains on minimizing HR intervention in common tasks. With employee self-service portals, staff can access their pay information, view digital payslips, and make personal updates, such as changing addresses or banking details. Employees can also easily access their pay stubs, tax forms, and benefit information through self-service portals. This allows them to review their compensation and benefits without the need for HR assistance, reducing HR’s involvement in routine inquiries and improving the time People leaders have available to focus on strategic tasks that enhance employee engagement.
While selecting payroll software Singapore businesses should ensure that the software complies with Singaporean tax laws and labor regulations. It should accurately calculate taxes and deductions while curating reports that meet the requirements of the Ministry of Manpower (MOM). This involves accurately deducting the right amount for the Central Provident Fund (CPF) and income tax, ensuring employees receive their salaries at least once a month, within 7 days after the pay period, and other unique Singapore-focused regulations to ensure your company remains compliant.
One of the major benefits of compliance with these regulations is avoiding financial and legal penalties. Whether it’s late salary payments, incorrect income tax calculations, or CPF, MOM can impose fines. Furthermore, delayed or incurred salary payments can lead to employee dissatisfaction.
A reporting feature is a crucial element of any payroll software as it provides real-time valuable insights for businesses. Payroll data allows organizations to generate detailed reports on various aspects of their payroll, such as employee salaries, tax deductions, and labor costs. This information helps inform financial decisions, ensure compliance with regulations, and monitor payroll expenses. Moreover, it simplifies the auditing process and helps identify potential issues for timely corrections.
Security measures such as encryption, role-based access control, and frequent data backups provide a shield of protection around crucial payroll data. These safeguards help prevent unauthorized access and potential data breaches. By doing so, organizations can ensure their payroll data’s confidentiality, integrity, and availability. You continue to maintain employees’ trust and ensure compliance with data privacy regulations.
Your payroll software must seamlessly integrate with other HR and accounting systems. This integration streamlines data sharing between different departments, eliminating the need for redundant data entry. As a result, the organization can operate more effectively, saving time and reducing the risk of errors. Moreover, it ensures that payroll data is in sync with the broader financial landscape of the organization.
Streamline Your Payroll Services with Omni
Omni offers a comprehensive payroll solution tailored to Singapore’s specific requirements. With features like support for SGD, automated tax calculations, and managed CPF contributions, Omni can help HR teams simplify their payroll processing and ensure compliance with ease.
With automated payroll outsourcing services, digitized and secure payslip distribution, and dedicated support teams to guide your team and ensure compliance, Omni’s payroll processing reduces the administrative burden of your HR team and frees up valuable time to dedicate to more impactful business processes.
Our expert support and assistance is tailored to your businesses unique requirements and local regulations. Book a demo today and learn how Omni can help you streamline your payroll processes and minimize the costs associated with common errors.