HR compensation and benefits have always been perceived as some of the most important factors that promote employees’ satisfaction and talent retention. While it is true that work stress is a major cause of dissatisfaction at the workplace, inadequate compensation is still the top reason cited by employees for quitting their jobs. If this is not enough for employers to get serious about employees’ compensation, the Ministry of Manpower’s (MOM) stringent salary payment guidelines under the Employment Act could be a wake-up call. Failing to pay their employees at least once a month could very well get them in trouble with the Ministry.
If you’re running a business, it is time to straighten out your payroll management and ensure your employees are remunerated on time. Whether you’ve engaged an HR service provider for its outsourced payroll solutions or are in the midst of shortlisting the right payroll services in Singapore, read on to find out about potential payroll challenges you may face and why outsourcing could be the best solution for you.
Payroll Challenges Without HR Outsourcing
Managing payroll is not a simple process. It would be extremely challenging for both small business and enterprises that attempt to handle it without HR compensation and benefits knowledge. Here are some payroll challenges that businesses are facing.
This may not seem like a real problem at first glance but tax authorities tend to take this seriously. The truth is, not all your employees belong to the same classification. They are usually divided into various types such as part-time, full-time and temporary staff. Some companies even hire remote contractors, freelancers and seasonal staff.
When employees are classified correctly, they’ll receive their timely compensation from your HR service provider and governmental benefits like Workfare Special Payment and CPF top-ups from relevant authorities. On the other hand, a misclassification can easily disrupt employees’ monthly payout and get the business in trouble with tax authorities.
CONFIDENTIALITY AND PRIVACY
With the increasing number of cyber scams and data breaches, the issue of data privacy and protection has become a huge concern for many employers across the globe. This can be especially tricky for businesses that do not hire Singapore HR consultancy firms or leverage payroll outsourcing services in Singapore with secured systems. They are constantly challenged to ensure strict protocols are adhered to when handling employees’ personal information because failing to meet these guidelines can easily bring unwanted lawsuits and revenue losses.
Recording and managing employees’ data is an essential part of HR management for both in-house HR personnel and outsourced payroll services in Singapore. Having updated information is essential for companies to contact their workforce but also important for reporting to governing bodies such as MOM and Inland Revenue Authority of Singapore (IRAS). Businesses must always have up-to-date employees’ information for submission to these authorities to conduct regular audits and validate tax matters. When there is duplicated or invalid workforce data, companies will run the risk of overpayment or infringement of tax regulations.
Outsource Payroll Solutions For Growth & Talent Retention
A great way to get around payroll challenges in Singapore is outsourcing HR functions to an experienced HR consultancy in Singapore like Liberte. Such an HR service provider offers outsourced payroll solutions that are cost-effective and customized to the unique requirements of individual businesses.
Liberte is recognized in Singapore as an HR specialist with expert knowledge in payroll outsourcing services, we are always equipped with updated payroll technology, the most current regulatory information and essential tax knowledge to let businesses and employers have peace of mind while outsourcing their payroll functions. You can contact us for reliable and trustworthy payroll services.