No matter how many employees you have in your company, you need to maintain all the records of your payroll taxes or payroll processing. The payroll taxes will include 3 different sectors – Income tax with holdings, Social security, and federal unemployment tax. A company needs to keep as much as 20 different financial records to satisfy the governing bodies.
Income tax with holdings
- Name, address and ID number of each employee
- Amount and date of each payment
- Amount of payment that is subject to withholding
- Withholding tax collected at each payment
- Show the reasons why the taxable amount is lower than the overall payment
- Statements of non-residential employees
- Market value and date of all noncash mode of compensation
- Payments made under sick-pay plans
- Exemption certificate of the withholding amount
- Official agreements of any voluntary withholding in cash mode
- Dates and payment amount for non-business services
- Tips received by the employees
- Another computation of withholding taxes
These are only a few things from the ocean of tasks that the payroll accountants manage. So, payroll Singapore could be quite challenging for the new business owners. There are several laws that you have to maintain during payroll processing and hiring an in-house accountant could be quite expensive for small companies. The best way to tackle the problem professionally is to hire payroll outsourcing services in Singapore.
Payroll outsourcing
The business entities have more options to handle their payroll processing and all you have to do is to choose the best method for your company. Now, the big business houses in Singapore may have an in-house payroll processing system as they can afford it. But you have just started a company in Singapore or anywhere else, such investments could become quite bothersome.
At the start of your business, you need the best guidance to grow while saving money for the company’s best interests. That is why you will need to outsource the payroll service providers and let them help you to make the best financial strategies for your company.
Related article: Your Payroll Jobs Are Best Left To Experts
According to a survey conducted in 2013, the small business owners have listed the payroll process at the 2nd as one of the prime burdens of business. But before starting to look for the best payroll outsourcing company in Singapore, you need to be aware of the pros and cons. Yes, payroll outsourcing has several disadvantages and you must consider both for the best of your company.
The pros
- You will need to make considerable efforts and must have attention to detail to do everything perfectly, which is quite time-consuming. This will distract you or you will have less time to manage other administrative tasks
- You won’t have to pay the monthly salary and other benefits
- The outsourced payroll services offer the best security for all your employee data and financial details
- The payroll rules are constantly changing, so it will be quite challenging to stay up to date without any professional help
The cons
- You might have a problem looking at employee data anytime you want. But these days the companies use shared access, which eliminates the problem.
- The correction might take longer
- You will have to share your crucial data with another company
