Payroll Service is an essential aspect of Professional Employer Organisation (PEO) service.
The diagram below shows the various relationships and scope of responsibilities between the client, contract employee and PEO service provider. PEO service provider acts as co-employer and employer of record for employment management, personal tax, employee management, payroll and statutory contributions purposes.
In Singapore, the typical scope of work for PEO service includes :
- Employment Contract Crafting and Management;
- Payroll Processing;
- Central Provident Fund (CPF) Pension Submission;
- IR8A /IR21 Personal Tax Submission & Clearance;
- National Service (NS) Claim Submissions;
- Paternity/Maternity/Childcare Leaves Submission Including Claims for Government Grants.
- Expense and Medical Claims Processing
- Provision of Monthly & Annual Payroll Reports to Management
Professional Employer Organisation (PEO) service provider should also ideally have capabilities in HR Advisory Consultancy and Support Service in the following areas:
- HR advisory services on Singapore’s employment laws, local HR practices, compensation and benefits management;
- Advisory on local and foreign manpower hiring strategies and foreign staff quota including application, renewal and termination of employment and work passes application process;
- Update/Prepare Employee Handbook for Singapore office;
- Employment contracts management for onboarding new hires, disciplinary and termination management for departing or offboarding employees;
- Local employment compliance matters on fair employment practices, government job portal advertisements requirements, retrenchment, disciplinary, fair termination practices;
- Recruitment and Hiring strategies including writing of appropriate job description for job advertisements for new recruits;
- Manage training and development needs of outsourced contract employees.