A Guide to Error-free Payroll Management


November 9, 2023

Dispersing salaries to employees counts as one of the most important tasks in every human resource department. A smooth-running payroll process is like a lifeline that keeps the entire workforce satisfied and motivated, but one that is plagued with errors and delays can cause corporate morale to plummet in an instant. While HR managers are well aware of these effects, it remains a challenge to maintain error-free payroll management. Why? Because there are some common payroll mistakes that are hard to fix.

Common Payroll Management Mistakes

Even though utilising outsourced payroll solutions or hiring HR payroll service providers can easily increase the efficiency of payroll management, companies must first understand the common problems that present the highest level of disruption to effective payroll management. 


The most common problem that companies encounter is the miscalculation of salary. Truth be told that keeping track of every employee’s monthly payout is a mammoth task. It comprises many components such as salary, overtime pay, commissions and mandatory contributions. The tracking problem is especially prominent among small and mid-sized organisations that do not have a systematic process in place to record employees’ activities or have not hired payroll outsourcing companies to handle the payroll process.


The appropriate classification of employees is essential for allocating the correct benefits and wages. However, HR managers often misclassify employees and wind up underpaying or overpaying. At times, companies may even end up owing tax dollars to authorities or workers’ compensation premiums. At its worst, a messy classification can lead to a total severance of relationships and loss of intellectual properties since it is unclear who owns the work produced.


Unless a company maintains a highly systematic payroll management process or hires professional payroll services to handle the task, staying compliant with the law and adhering to necessary contributions, levies and statutory requirements can often be overlooked. Such mistakes may include erroneous contributions to the Central Provident Fund (CPF), Skills Development Levy (SDL) and monthly levies for foreign workers with Work Permits.


Without accurate and updated records, companies run the risk of salary miscalculation, misclassifying employees and a myriad of erroneous contributions. Keeping up-to-date employees’ records not only facilitates future audits but also ensures the payroll process can run with precision. These records include details like hours worked, payment rates, payroll dates and permits that allow employees to be fairly and legally compensated.

How to Minimise Payroll Management Errors

Combating payroll errors can be an ongoing battle for HR managers unless companies choose to take a proactive approach. For businesses that prefer to maintain an in-house process, investing in a robust payroll management system is an important first step to mitigating common errors that occur when the task is done manually. Selecting the latest software with custom features that are relevant to the business will also ensure a higher level of accuracy.

Alternatively, small and mid-sized companies may benefit from outsourcing to HR payroll service providers in Singapore. Bringing an experienced partner on board can immediately resolve errors caused by inefficient processes and tap on the latest outsourced payroll solutions for payroll management. 

Utilising A HR Services Partner for Payroll Management

Outsourcing payroll management to a professional HR service provider in Singapore can take away the stress of managing it in-house and ensure a higher level of efficiency in payroll management. For companies looking to partner up with an experienced HR service provider, get in touch with us at Liberte Consulting now.  

Liberte Consulting is an award-winning HR consultancy and service provider in Singapore with immense expertise in HR and payroll outsourcing solutions in Singapore. Whether it’s a new customised payroll integration or adapting to an existing payroll process, Liberte has the right solutions to help clients overcome HR challenges and optimise their workflow with efficiency.

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