Payroll management is often thought of in an over-simplified manner, as if it were just the documentation of salary expenses. However, in truth, payroll management consists of many intricate parts and processes that must be performed in a masterful way if a company seeks to fulfil payroll deliverables efficiently, satisfactorily, and in a timely manner.
Your employees are your most valuable assets, and improper payroll management can cause not only much frustration, but extremely costly mistakes and oversights both internally within the company and externally in the form of litigation or penalisation from government taxing agencies and the likes.
Here are 4 essential steps to professional payroll management that all businesses should follow, regardless of whether they engage payroll outsourcing companies for outsourced payroll solutions or handle their payroll management in-house:
Understanding Inherent Payroll Management Responsibilities
All employers in Singapore have a set of inherent payroll management responsibilities they should fulfil for both their employees and as a duty to the government. This includes:
Choosing the Right Payroll System
Businesses looking to execute professional payroll management also have to choose the right payroll system for their nuanced needs. A brief rundown on the available options is as such:
Read more about choosing between in-house payroll management and payroll outsourcing in Singapore.
Ensuring Your Employees are Correctly Paid
Be it through cheque, direct deposit, cash, pay cards, or mobile wallets, employers must ensure that workers are correctly paid in a timely manner. By ensuring employees are correctly paid through proper payroll management, you are essentially showing appreciation for their contribution to the workplace. This increases employee morale and makes them feel valued, enhancing employee loyalty and productivity in the long run.
Paying Payroll Taxes and Filing Tax Forms
Lastly, businesses must also ensure that they properly report the earnings and withholdings of each employee, along with other tax requirements in Singapore. All tax forms must be filed in a timely manner, and the figures indicated in said forms must be accurate and up-to-date to avoid unnecessary legal costs that can arise from not doing so.
Refine and Redefine Payroll Management Processes
While following the four steps mentioned will set your business up for professional payroll management, you’ll still have to continuously refine and redefine payroll management processes to streamline your business operations, reduce costs wherever possible, and optimise profits. Find out how to improve payroll processes for your business such that payroll management brings meaningful value rather than costly detriments to your company.