Business Case for Payroll Services
Payroll Service is increasingly being sought by forward looking companies as part of their human resource strategies to remain nimble and lean in an increasingly competitive business environment. With the advent of technology and payroll software, payroll outsourcing to leverage and improve business efficiency and productivity is becoming one of the key priorities in human resource management as outsourcing payroll services provide a clear benefit.
Below are several benefits to outsourcing payroll and the reasons why companies should consider outsourcing their monthly payroll process.
Increasing complex and constantly changing rules on salary calculations
In Singapore, employment laws relating to calculation of salary payments, payment process and central provident fund contributions for different age groups etc are constantly revised and updated. In addition, there are various types of government funded claims and reimbursements such as national service claims, child care claims, paternity and maternity claims. The work would involved making correct online application for reimbursements and refund back for employees who are entitled to these claims.
There are also substantial government funding available for employee training under the various Skills Future programs. However, employer must make a prior application for approval for eligible employees and make the necessary claims after the employees have successfully completed the training.
Professional payroll outsourcing managers must constantly keep abreast of changes and ensure correct calculation and accurate figures are used for payroll processing each month. You must also be able to answer your employee’s queries about their payroll confidently and clearly.
Independent verification and better reporting requirements
Payroll service and processing providers provide a wide array of payroll reports for management reporting purposes. Using more advanced payroll software, various levels of reports can be produced depending on clients’ requirements.
Payroll outsourcing companies are able to provide specific & ad-hoc reports for your various accounting or management requirements quite quickly.
Direct access to payroll experts
Payroll Outsourcing and online payroll service firms are staffed with specialised and knowledgeable payroll staff who are able to attend to your employee’s queries, and can act as a single point of contact for your employees.
Depending on the number of head count, payroll outsourcing companies can possible assign a dedicated staff for its clients.
Singapore payroll services professionals keep themselves abreast with the changes to the CPF rules, taxation and your employee benefit programs. Most payroll outsourcing and payroll service providers conducts in house training or send their staff for external training so that they are well trained and skilled in serving the needs of their clients.
Freeing up management time to focus on core business activities
One of your main reasons for outsourcing to a specialist online payroll services provider is that it frees up time and resources for key staff to concentrate on strategic human resource management areas such as recruitment, retention and staff performance that have a deeper impact on business performance and profitability.
It is increasing getting more difficult to recruit and retain a full time in-house employee to manage companies payroll. As payroll is a sensitive matter, each time an employee leaves, a lot of management time is expended in ensuring that there is proper hand over to a new employee.
When payroll processing is outsourced, there is no such issue as the payroll outsourcing companies would have a team of employees to handle the payroll processing. When an employee leaves, there would likely be a seamless transfer of work and responsibilities to another payroll staff.
Unless the employee head count is more than 50, it is perhaps not economical to hire a full time staff to handle employee payroll. Payroll outsourcing or payroll services providers can probably offer a much lower cost than an in-house staff. For companies with small and few head count, it cost savings is one clear benefits to outsource payroll processing.
Management and general office administrative staff that are often entrusted with payroll processing for small companies can be deployed to take on other responsibilities such as customer service or take on strategic human resource management responsibilities which would have a greater impact on the success of the company.
Internet Cloud Technology Efficient Payroll Process
With better payroll software and payroll services technology, payroll outsourcing companies are able to provide on up-to-date, timely and more efficient service and support to clients. Access to Individual payroll files for each employee and computation all the salary and reimbursements can be done faster and managers and clients can have access to these information almost instantly with internet access. Printed or electronic pay advices via the internet can be generated and delivered to each employee, and annual bonus, increments etc. via email or can be accessed by employee anytime and anywhere on mobile or desktop.
Employees can be provided with individual online access to their payslips and with e-leave option, they can also make application for leave via online.
Given the benefits to outsourcing payrolls mentioned in this article, it is crystal clear that forward looking companies in Singapore should adopt Payroll outsourcing and consider engaging Singapore Payroll Services providers as part of their business strategies to compete in an increasingly competitive and volatile business environment.
Choosing and working with the right payroll outsourcing business partner or online payroll service provider is a critical part of business outsourcing process.
We provide corporate payroll services part of a full spectrum of human resource services ranging from recruitment, contract staffing management, payroll outsourcing, work pass and employment pass applications etc. For more information on payroll outsourcing and Singapore payroll services options, please contact us.