What is payroll management?
Payroll management is about administering employees’ salaries, bonuses, relevant payments and financial records and possibly other miscellaneous items like leave and medical leave matters.
Payroll management is an important aspect of running a company. It is mandatory to maintain and keep employees’ records according to the Employment Act. You have two options to deal with your company’s payroll management. You could either do it in-house, i.e., either employ someone to deal with payroll management like a HR manager, or you can outsource your payroll management to an external vendor like Singapore Secretary Services.
Why would you want to outsource your payroll management?
- Saves you time and effort
Unless you are familiar with this work, payroll management is usually something that not everyone wants to focus on. There are many other things to do like business development or management of staff. In most cases, the HR manager job is assigned to an individual. This is because payroll management and other HR matters are very time consuming. If you are time strapped, this may not be something that you should be spending your time on.
- It may be cheaper to outsource
If you do not have many staff, employing a HR manager may not be cost effective. You can then consider outsourcing your payroll management till your company becomes large enough to be able to employ a HR manager.
- Engage specialists
The work done may be a bit too tedious and complex for some business owners. In this case, it would be better to engage specialists in the field to handle such matters. As specialists are doing payroll management on a daily basis, they are typically faster and better at the task. It’s the same idea if you were to specialise in what you do on a daily basis, resulting in you getting better over time. Certain software may be able to help you when it comes to payroll management. However, mastering the software and remembering the Central Provident Fund and Skill Development Levy rates is not something that you should have to remember as a business owner. You can always outsource such work to a third party.
However, it would be wise to take note that even if you were to outsource your payroll management, the responsibility is still ultimately yours. If there are mistakes, your company is responsible for such mistakes. This is why it is important to find someone who is well versed with payroll matters if you were to outsource your payroll management.
If you are looking to outsource your payroll management, do contact us at [email protected].
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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