Author: acefinancial

What Does a Payroll Service Company Do?

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From preparation of employee payslips to calculating final payment of resigned/terminated employees, and preparation of annual income tax forms to annual leave calculations, there are many reasons why companies should outsource their payroll services to a qualified company.

Handling payroll processes pose serious challenges to the business of all sizes. Tackling payroll taxes, time & attendance and worker’s compensation can be daunting even for the most experienced and hardworking leaders.

Business leaders who happen to find themselves in situations where they feel overwhelmed with payroll processing or tax calculations can benefit a whole lot more with payroll services in Singapore. These companies are designed to remove the stress from the payroll and related processes by offering intuitive solutions to business of all sizes, and in all sectors.

So, the question then becomes, what does a payroll service company do?

Payroll service firms work with businesses to make sure that employees get timely payments every time and that the legal obligations of the employer are met. Since they concentrate on human resource and payroll tasks, these firms take the stress out of the process, thereby allowing leaders to focus on their core competencies.

But payroll is not all about writing checks and organizing payments through direct deposit. Payroll services take care of a range of duties, including:

  • Keeping tabs with employee attendance and time
  • Creating and adjusting direct deposit accounts
  • Calculating final payment for resigned/terminated employees
  • Calculating annual leave/entitlements and deductions
  • Submitting CPF, SDF, and donations to the CPF Board electronically
  • Preparing the annual income tax forms for employees
  • Calculating payroll taxes and making sure the deductions are correct
  • Actively tracking the relationship between workers’ compensation premiums and actual payroll

Integrating benefit plans

One of the primary duties of a payroll firm is to simplify the process of monitoring employee time at work and attendance. Most companies achieve this through a combination of the clock in or punch in the option to employers. In some instances, employees may use fingerprint scanners or secured badges to clock in. In other cases, they sign into an online account to check-in at the start of the day and check out at the end of work.

Reasons to choose payroll service companies

Choosing payroll services in Singapore is the best way to streamline the payroll process and cut out the need to hire an in-house payroll department. Many leaders also decide to outsource this function because payroll companies provide the best in accountability and legal compliance. When leaders collaborate with payroll experts, they can rest easy knowing that any filing or pay mistake will be uncovered and corrected quickly. Outsourcing is the best way to offer employees with reliable and efficient payment services while reducing liability concerns.

Payroll functions consist of complicated legal obligations. Outsourcing the need to an outside firm can help companies save money on legal fees, and place compliance in the hands of people who are well-versed with these processes. Payroll companies understand the need to do an accurate job because otherwise, they won’t have a business. So, leaders can always count on them to stay up-to-date with new tax laws related to employee payroll.

Conditions for Singapore GST Registration You Need to Know

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GST refers to the tax levied on the importation of goods and is collected by a country’s customs authority. In some countries, GST is referred to as VAT which stands for value-added tax. The following is a discussion of the various registration conditions.

For Compulsory Registration

How liable you are for GST registration in Singapore is solely dependent on the value of your taxable turnover. It basically means the value of goods and services that the GST terms as taxable for you. Registration is a must under the following conditions.

A Retrospective View

In case your taxable turnover is $1 million or more at the end of the calendar quarter. You have to monitor your taxable turnover at the end of every twelve months to determine if it exceeds one million dollars and if so go ahead and register for GST. A GST registration calculator can help you greatly in monitoring your registration liability.

A Prospective View

In case that your taxable turnover is expected to exceed one million dollars, you need to have all the right documentation to support your forecast value. The documents include signed contracts or agreements, quotations accepted by customers, confirmed purchase orders received by customers, invoices of customers with fixed monthly charges and income statements showing that the taxable turnover tax of the past 12 months is close to $1 million and is still increasing. However, you are not entitled to make GST registration if your forecast for the next 12 months shows that your taxable turnover will not exceed one million dollars. You could make an assessment based on the market conditions or business targets.

Exceptions for GST registration

You are not required by the law to do GST registration in the following situations when your taxable turnover is mainly from zero-rated supplies. You can also choose to apply for an exemption from the registration. It should be noted that you are liable for GST registration under the retrospective view but not under the perspective view but only if the following conditions have been met. If you are sure that your taxable turnover will not exceed one million dollars for the next 12 months, if the taxable turnover is projected to be lower due to unavoidable circumstances such as large-scale downsizing of business and if you have all the right documents to back up your claims.

If you are not liable for GST registration you may also choose voluntarily to register, but only after you have considered the issue very carefully.

Notification Period and the Right Time for Registration

It is a requirement for you to make GST registration in Singapore within 30 days from the time that you become liable to make a registration. The effective day for registration is highlighted below.

For a retrospective view, you will be liable to make a registration on the first day of the third month following the end of the calendar quarter. On the other hand, for a perspective view, you will be liable for a registration on the 31st day from the forecast day. Late registration has very serious consequences including backdating and heavy fines.

Surprising Benefits of Incorporating Your Company in Singapore

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When you decide to register your company in Singapore, you are implying that you are ready to make this a serious business. Getting your company incorporated here complete with the best corporate secretarial services Singapore is already enough to attract the attention of potential investors because they know how serious you are about making your company succeed. Read more

A Complete Guide to Singapore GST

by acefinancial acefinancial No Comments

Out of all the countries around the world, Singapore is famous for having the most business-friendly environment. According to many studies, Singapore will stay as the best place to do business even until 2030. This should be enough reason to convince you to do a GST registration Singapore. Read more