Payroll Process Makes Business Easier for Small Business Owners

When a company keeps a financial track of the sum of an employee’s salary, wages, deductions and bonuses, it is known as  payroll processing. A company practices keeping its recruited employees on the payroll and pays an amount for their disbursed work to the company for a certain period of time. Payroll processing is a time consuming task that requires accuracy. Payroll holds an important role in a company’s functions.

Payroll is important for accounting process as well. The payroll calculations are taken into account when filing the taxes. Payroll processing should be in compliance with the rules and regulations laid by the governing authorities of that respective country, for example, the Inland Revenue Authority of Singapore (IRAS) is the tax regulatory body of Singapore.

The fundamental task of payroll department is to keep the employees satisfied by disbursing accurate and timely payment after making deductions or calculating bonuses or overtime for their services provided to the company. With the advancement in the technology manual payroll processing and manual accounting process are taken over by payroll software and accounting software respectively. Many business owners are outsourcing payroll process to payroll service providers in order to get the work done more efficiently and accurately. Outsourcing payroll process is proving beneficial specially to small business owners. A considerable amount of time is saved which is then spent into strategic business planning such as client building.

The payroll outsourcing firms in Singapore provide comprehensive payroll services. The services include processing payment instructions, generating payroll and statuatory reports, filing bank payment and generating employee payslips electronically. The system assists the employees to view the payslip online. Many companies provide you with a dedicated executive to sort out payroll related queries. The person is also responsible for guiding you on the payroll policies and how to approach best payroll practices.

Payroll service providers primarily focus on processing monthly payroll, which includes

·         Crediting salaries in the respective accounts of the employees.

·         Producing pay slips and crediting into CPF and MPF accounts.

Payroll process also includes updating and adjusting salary increments. Management of deductions and, calculating allowances. Management and tracking of employee data is a mammoth task. Payroll processing includes tracking and maintaining employee data movement. The payroll services provider also helps in calculating monthly overtime and shift hours. They also assist in calculating commission based payments. Apart from this, preparing and maintaining customized reports of general ledger. One of the major assistances provided is preparing tax forms to be submitted to regulatory authorities.

Adopting payroll process is a cost saver step which ensures security. The time and money saving factors are maximized by embracing payroll process which ensures growth and success for your small business.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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