What Does a Payroll Service Company Do?

What Does a Payroll Service Company Do?
by acefinancial

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.

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