One of your most important responsibilities as an employer is to pay your employees correctly and timely. Another crucial factor is ensuring that your payroll complies with the Government regulations. Appropriate deduction on each employee’s salary also falls under your purview. Have you ever wondered how a delay in pay could affect your employees? It negatively impacts the workforce morale and staff retention. At the same time, it does not reflect well on your reputation as well as credibility.
Prompt and accurate payments, meeting compliances, and structured record maintenance represents a good payroll management system. However, lack of discipline, obsolete systems, and overworked processing staff lead to payroll errors.
Therefore, an accurate payroll management system is imperative for any organization to be successful. Below are four precautions that you must take for a better and well-managed payroll process:
- Timely disbursement of paychecks – Timely payment of salary is essential to keep up the morale of your workforce and maintain your reputation. Delayed payments can affect your employees’ expense plans or GIRO arrangements. Some of the critical reasons for delays are overworked staff, lack of automated software, and discrepancies due to manual errors. The bitter truth is unhappy employees tend to lose confidence in their organization.
- Compliance with payroll regulations – Singapore Government is strict about complying to the tax laws, failing which can mount to penalties. As per the rules, the Government can impose a fine of up to $15,000, and/or a six months’ imprisonment. Additionally, you must update your payroll software every year according to IRAS’ recommended control standards. Often, overburdened resources in the payroll process tend to overlook these statutory regulations. The Singapore Government can impose inquiries and penalties on organizations. Another point worth mentioning is the CPF payment. Rules for CPF contributions are too complicated for manual calculations. Without automation, it leads to manual errors and over or underpayment, ultimately impacting your revenue. Dedicated payroll service providers stay updated on the regulatory developments and ensure the compliance of their clients.
- Accurate employee details – All the relevant information of employees must remain up to date and accurate. Any incorrect data can result in payment error. For instance, organizations may have employees working under various categories – contract staff, full-time, part-time, freelance and so on. Depending on this classification, employees would have different shift patterns and salary packages. Any error in this information could lead to a discrepancy in salary disbursement. Other relevant data such as leave records, salary changes, promotion details, etc. should be updated real-time.
- Maintain proper payroll records – As per the Singapore Government, tax submission forms to IRAS annually. Any organization that does not maintain an appropriate payroll management system has to pay a hefty price for it. Organizations should keep proper records and accounts of their business. These should be handy to be determined readily.
How Deskera’s cloud-based HRMS system can enhance your payroll process
Deskera is a market leader of cloud-based integrated software suite and the no. 1 choice of SMEs in Southeast Asia. Deskera HRMS tool helps businesses avoid the long and tiring manual process of payroll management. With an integrated HRMS system you can automate your entire payroll processing -calculations for wages, bonuses, and other forms of compensation. The system allows you to organize employees into groups as per the designations and pay scale for uniform payroll calculations. Accuracy and timeliness in payroll keep your employees happy.
Payroll processing involves calculations, disbursal, pay slip generation and payroll management. Additionally, overtime and leave calculation, attendance reconciliation, claim reimbursement, and payslip distribution are a part of the payroll process. With Deskera’s integrated HRMS app enterprises can automate this cumbersome and error-prone process. Quick preparation of payroll and better time management helps businesses to enhance their productivity. Since the HRMS suite maintains a centralized database, all payroll and HR data are stored securely for existing and ex-employees.
SMEs can stay compliant with region-specific regulations and tax laws. Deskera keeps updating its software as per the latest regulatory requirements. Therefore, you can calculate the tax and retirement pension of employees as per the updated rules. You can also automate CPF calculation, IRAS calculation, and e-submission files. By automating these routine tasks, you can quickly capture all the information required to prepare your payroll process. As a result, resources can utilize their time in other productive work.
Having a good payroll management system ensures that the payments are made accurately and timely in compliance with the local regulations.