As a business owner, you should always look for ways to optimise your company’s performance in the most efficient way possible. Many businesses, especially new ones, face a challenge: spending too much time processing employees’ payments. While late payment is not necessarily a crime in Singapore, it can result in employees having low morale and a bad impression that reflects negatively on the business. All these feelings can lead to the company suffering long-term damages and even being involved with legal cases. As such, it is simply easier and better for everyone that payments are made on time.
However, payroll is a complex process, involving many procedures that require the business owner or HR team to ensure compliance with tax and legislative laws. This responsibility is no doubt time-consuming, preventing you or other employees involved from focusing on essential tasks.
If your business is facing such a predicament, it is a good sign that you should consider outsourcing your payroll services. In this article, we look at some of the benefits you can seek to gain.
Save Time and Concentrate on Other Tasks
As we have mentioned above, one of the most significant benefits of outsourcing your payroll services is freeing up time to achieve the company’s core goals and objectives. The time you would initially spend to oversee, and process employees’ payments can now be used efficiently and productively to propel your business forward. Most of the time, business owners or HR professionals have to look forward to spending long hours during each pay cycle to complete this administrative task. Now, you no longer have such worries and burdens.
Minimise Compliance Risks
Regardless of which country your business is based in, a business must adhere to many rules and laws when it comes to hiring and paying employees. In Singapore, we are mainly looking at the Employment Act, which dictates that employers who submit late payments are subjected to a fine from $3000 to $15,000, a jail term, or both. For small businesses, these are risks and penalties that they simply cannot afford to deal with. Therefore, to ensure that your business has a good track record in consistently paying employees on schedule and to avoid any non-compliance mistakes, you should allow a third-party team of professionals with the experience and knowledge to take care of your payroll management.
Achieve Payroll Continuity
Let’s say the employee responsible for managing the payroll system suddenly resigns or is unable to come to work? This can lead to delayed payments, and the business owner has to quickly find ways to solve the problem, which is a huge hassle. On the other hand, outsourcing payroll services help ensure payroll continuity each month, even when employees are away from work and any unexpected situations arise.
Enforce Data Security and Protection
At a time when companies are increasingly vulnerable to cyberattacks committed by criminals, business owners should take extra steps to keep their sensitive and restricted data like payments and other financial records secured at all times. This is challenging for in-house employees to maintain as data security needs to be controlled on a regular basis, not to mention that in-house processing has a higher risk of falling victim to theft and fraud online, and companies may not have sophisticated and appropriate tools to deal with data protection.
This is why payroll outsourcing providers like Tianlong Services can provide peace of mind as we not only see that your data and information are kept in a highly secured cloud-based server, but also perform regular backups to keep up with evolving cyber threats.
You know what they say: time is money. Since outsourcing payroll services enables you and your employees to save time, the company can also save up on money. This applies particularly to new businesses that have plans to expand in the future. As your workforce grows, you may need to spend money on hiring more HR professionals, alongside investing in more advanced payroll software. By outsourcing payroll services, you can expect a lower wage bill, increasing your company’s profits.
Looking for a reliable and professional payroll outsourcing provider? Tianlong Services has got you covered by assigning a dedicated payroll account manager to each company and using the latest payroll software to get the job done effectively and efficiently. We also operate as an accounting provider, consulting on chart of accounts and offering the best accountants for various businesses. Whether you plan to outsource your payroll services, outsource accounting in Singapore, or both, feel free to contact us at +65 8809 9315 to find out more.