Payroll Service by Qualified Professionals in Singapore
Payroll Service is a service which tabulates and reports employees’ remunerationfor businesses. Small and Medium Enterprises (SME), especially new business start-ups, should need this service more than bigger businesses because of the financial constraint on employing a full-time in-house payroll specialist.
By outsourcing the payroll function, businesses free up precious time and limited resources to focus on Sales (i.e. revenue generating activity) and other core functions. Moreover, Payroll Consultants’ expertise in handling payroll matters would enable businesses to comply strictly with the regulations of Ministry of Manpower (MOM), Central Provident Funds (CPF) and Inland Revenue Authority of Singapore (IRAS). Most importantly, businesses should gain some cost savings compared to hiring a permanent or part-time staff to perform this function.
Itemized Pay Slips Required by MOM
Employers must issue itemized pay slips to employee with effect from 1 April 2016. The pay slips must be given within 3 working days of payment.
Pay slips must include the following items, if applicable:
- Employer’s Full Name
- Employee’s Full Name
- Payment Date
- Basic Salary (and Basic Rate of Pay, if applicable)
- Salary Period (Start and End Date)
- Other Payments
- Deductions from Salary including CPF Contribution, no pay leave and absence from work
- Overtime Pay and Hours worked and Overtime Period (Start and End Date)
- Net Salary Paid
Employees’ Remuneration Details to IRAS
In order to prepare and file the Form IR8A or IR8E (Auto-inclusion Scheme) correctly with IRAS, you must understand the taxability of each remuneration item (i.e. Salary, Bonus, Allowances and Benefits). Salary, Bonus and Allowances are quite straight forward. The difficulty lies in the Benefits-in-kind.
Some Benefits-in-kind are taxable and some are not due to concessionary treatment (i.e. tax exemption or lower tax under IRAS concessionary rules). If the Benefits-in-kind qualify for concessionary tax treatment, it means you should enter a lower or zero amount in the Form IR8E. Businesses which are not familiar with the rules may report more income than necessary or may not comply strictly with the rules and be penalized by IRAS.
IRAS is moving towards electronic filing of tax returns and other forms. As such, businesses with 9 or more staff can no longer file a paper Form IR8A in Year of Assessment 2018. It is compulsory for them to file electronically from Year of Assessment 2018 onwards. It is also a matter of time when IRAS makes it compulsory for all businesses. Can your payroll software generate the Form IR8E for electronic filing? Wish to find out how we can help?
Payroll Service and Employees’ Central Provident Fund (CPF) Contribution
Reporting of CPF Contribution has been greatly simplified or automated. Payroll software can generate the necessary files for CPF reporting most of the time. However, setting up the payroll software and knowing which payroll items are subject to CPF contribution can be a challenge. This is especially so when tax rules and CPF rules are not harmonized. Some non-taxable remuneration items require CPF contribution. Some taxable remuneration items do not require CPF contribution. An experienced Payroll Consultant knows the taxability and CPF implication and will therefore be able to guide you appropriately.
Sign Up Quickbooks Online and Payroll Software with Us
When you sign up Quickbooks Online with us, we provide you with special rates for setting up the system. In addition, you are allow to purchase our package of accounting service, corporate secretarial service, tax service and payroll service at preferential rates.
Accounting for business transactions and payroll is important to ensure that the accountability for manpower cost is accurate for decision making. When you outsource your payroll and accounting to us, you can be assured of proper accountability and reporting of both payroll and business transactions. Let our financial accountants and management accountants provide the necessary payroll and accounting services to meet your business needs.
Our Quality Payroll Service
You should seriously consider outsourcing your payroll function to us. We offer affordable fee and reliable service. You should also consider our Accounting Related Services including Tax and Corporate Secretarial Services. For Accounting Software, you can sign up Xero and Quickbooks subscriptions with us and get special rates for setting them up. Get in touch with us now via our Contact Form.