Setting up an office in Singapore presents an exciting opportunity for businesses in South East Asia. Not only can you gain access to business within the island country, Singapore also connects you to huge markets in China, India, and even Australia. The Singaporean economy is very conducive for foreign entities to operate from the city-state, but companies must ensure able compliance with the governing laws.
While for a big global company, setting up an in-house HR department can be feasible, a lot of small and medium-sized companies outsource the payroll. It’s a suitable option, primarily because companies can save thousands of dollars they would have to otherwise spend on infrastructure, training, and other aspects of HR setup.
Selecting the Right Payroll Manager
All you need to do is find the right payroll services singapore, people who can be trusted with your financial data over the long run. Also, you need to see if the designated service can handle the entire task from beginning, which includes everything from the primary setup to audits and pension allocation.
Singapore has a set of governing laws that must be obliged with when you do business here. The key law is the EA or the Employment Act, which stipulates the fundamental framework for salaries in Singapore. All companies are required to disburse salaries at least once every month, complemented with itemized pay slips as either hard or soft copies.
Key Objectives of Payroll Management
Monthly salaries need to be cleared within 7 days of the last pay cycle, and overtime dues should be cleared within 14 days of the last pay cycle. The salary should consist of anything that adds to or deducts from the net income of the employee. This includes basic pay, allowances, commissions, incentives, and bonuses. Also, companies may be required to fill out pension duties besides clearing out key levies like the SDL and the FWL. Discussing these aspects with a designated service can help you make an assured decision when you outsource the job.
