20 Jul 2023
Singapore does not have payroll withholding; however, there are key regulations associated with payroll. Consequently, if you own a small business, maintaining your payroll may be among your most challenging tasks. You may feel overburdened when managing your small business payroll due to its complicated and time-consuming nature.
Managing payroll correctly is crucial if you want to prevent critical company resources from being tied up or lowering employee morale. In light of this all, this article provides suggestions for improving your small business payroll management, making it a simpler and more precise business, and how payroll software can help you with these tasks.
1. Establish Payroll Policies and Procedures
To administer payroll effectively and timely, it is important to establish standards and procedures. First of all, pay schedule refers to the timing and frequency of employee payments. You should make sure you are adhering to minimum payday, if any, by carefully reviewing laws and regulations. Knowing when payroll must be processed also helps you proactively prepare adequate money in advance to cover expenses.
In Singapore, according to the Employment Act, businesses must pay the salary at least once a month and within 7 days after the end of the salary period. The term for payments for overtime work is within 14 days after the end of the salary period. Besides, you need to determine whether to calculate salaries based on a salary, hourly or other basis. The decision depends on the position of the employee and the specific needs of your small business.
Updating your employees on how payroll works is also a must in small business payroll management. Your employees should know how to track payroll processes, who to contact if they have concerns on payroll and their benefits, and what premium and retirement fund deductions would occur. Synergix ERP solution provides payroll module with a user-friendly interface. Regardless of technical proficiency, all of your employees can access and use this to securely view crucial payroll information, report hours worked, and request time off.
2. Adjust Payroll to Comply with IRAS Regulations
As per Inland Revenue Authority of Singapore (IRAS)’s requirements, you can submit employment income information directly via IRAS’ online digital service at myTax Portal, or the Provident and Tax (PAT) system. Hence, there is an urge for Singapore corporations to digitalise their payroll process by using payroll software.
Another option is submission via Payroll Software (API). However, there are Technical File Format/Specifications that you need to meet if your company is using an in-house payroll system and is interested in making submissions via API. These specifications will determine the API integration capabilities of your payroll system.
Adjusting your payroll system to IRAS regulations can be a time-consuming and labour-intensive task for your in-house IT team. A perfect solution for small business payroll is to use an all-in-one integrated ERP system. Synergix ERP system provides payroll software compliant with IRAS regulations. It can be used to generate IR8A form, extract and export to a compatible format the CPF file and accurately track your employee’s CPF contribution and tax.
3. Ensure Data and Documents are Error-free
Every year, small businesses might lose hundreds of dollars due to errors such as inaccurate data entry, typos, or erroneous information. To ensure that all the necessary documents for payroll are error-free, it is crucial to carefully review all the reports. As an alternative, you can employ a professional who will audit your payroll system and identify any problems.
Automating your small business payroll is considered the best choice. It can save you from the above-mentioned payroll problems. Furthermore, compared to automated payroll software, manual data entry is obviously slower. With an automated payroll software from Synergix ERP system, you can process the payroll through a computerised system. The process is simpler and helps your company save a ton of time because the possibility of errors is greatly decreased.
Read more: A Comprehensive Guide for SMEs To Choose ERP Software.
Conclusion
For small enterprises, particularly those in the building & construction, wholesale distribution, or manufacturing industries that are labour-intensive, payroll management is a crucial administrative operation that must run precisely and on schedule. Therefore, it is important to set up a system that works for your small business payroll. The payroll software in Synergix ERP system can greatly improve efficiency and accuracy through automation and comprehensive payroll reports. Synergix ERP software also integrates with other solutions, such as Accounting, Business Analytics, Contract Management, Customer Relationship Management, to take your business to the next level.
With over 34 years of expertise, Synergix offers you the experience of a completely customisable and integrated ERP system. To minimise the net cash investment, eligible enterprises can tap on several grants of up to 50% of the qualifying cost introduced by the Singapore government.
If you have any further questions, please contact us right away!
