Tips When Doing Payroll for Your Small Business in Singapore

Tips When Doing Payroll for Your Small Business in Singapore – Did you know that some small business owners don’t do payroll for their company’s employees? Of course, We are pretty sure they have a good reason (or more) why they don’t pay the workers.

It is understandable why many small businesses don’t do payroll for their employees, but there’s no good reason not to pay your workers. If you’re a small business owner, payroll is an important part of running your business. You could save a lot of money by not making it. Now that’s pretty compelling, right?

But we’re curious as to what these reasons are. So, we have created this list below containing some tips on doing payroll for business in Singapore. By the time you’re done reading this article, you’ll know if you’ll be doing the payroll or if you need to outsource it.

Choose a payroll system

You will find many payroll systems out there. It’s simple to use and has many features to help you manage your workers efficiently. It has great features that allow you to do payroll for your small business in Singapore and some other features, like automated time tracking.

Invest in HR software

If you’ve just started a new business, you’ll want to invest in good HR software. HR software is the one that will help you keep track of the employees’ information, such as their full names, address, and phone number.

Also, it will help you in other ways, such as creating employment contract forms and also employee rules and regulations. There are many HR software out there, but I recommend using the system for its easy-to-use interface.

One more thing you can use to do payroll for your small business in Singapore is payroll accounting software. There are so many accounting programs out there that it’s hard to set a standard price since they all offer different packages at different prices.

Set minimum wage

You will find that there are different minimum wage rates for different business sectors. And it’s important to set that rate for your own business. Having a firm minimum wage helps your workers out since they won’t have any problems asking for more pay if they’re doing hard work or if the work is underpaid.

Train new employees

You might have heard or read about the importance of training your workers. This is especially true if you employ people who are brand-new to the workforce or people doing the same kind of job for the first time. They will need more help than someone who has been doing that work for a while now.

Also, it’s easy to forget some things when you’re teaching someone how to do a certain task. So, try to take notes regularly and review them with your workers after they’ve experienced doing their tasks in real life.

Be familiar with the payslip format

Payslips should be in PDF format and will be used by the HR Managers or Payroll System to print out when it’s payday. You can also use this system to let your workers know how much they will be getting paid. The payslip should include the worker’s name, how much they worked, and any additional information you want to include.

You can find the payslip template online, making it easy for you to design it yourself. Also, some companies revamp this payslip template so that it conforms to the Singaporean government standards.

Let the employees know when they will get paid

It would be best to tell your workers when they should expect their pay. This way, they will know if they expect to receive a paycheck on payday or if they should wait a little bit more to get that money. It also helps you out because you’ll be able to prepare for how much money to give out when it’s time to receive their payment.

Know your taxation rates

When it comes to paying your workers, you have to understand that you’ll have to pay them more than they’re asking for. The amount of taxes and other deductions that you’ll have to pay for their salaries vary depending on each employee’s salary.

Calculate income tax for your employees

To calculate income tax, there are two things that you need to know:

First, you need to know the number of hours for a normal workday for your employees. The number of hours will differ depending on the type of business you’re in. A normal workday is from 8 am to 5 pm or later, but it might be longer or shorter depending on the business and the sector.

Second, the income tax you need to pay per employee depends on how much money they earn. The rate for heavy earners is 1 percent and for light earners is 20 percent.

Pay your employees on time

As an employer, you should never miss a payday. This is because missing that day means you’ll have to pay for the late payments that your employees will be receiving. Also, it will create many problems and questions from your workers that you may not be able to answer.

However, there are cases when employers don’t make payments on time due to certain reasons. But don’t worry – if this happens to you, tell your employees what’s going on and how long it’ll take before receiving their payment.

Tips When Doing Payroll for Your Small Business in Singapore –
Final takeaway

As a business owner, you are responsible for paying your workers. So make sure that you know the proper steps in doing payroll for your small business.

If you’re having a hard time doing the payroll yourself, remember that there are other options that you can opt for, like hiring an accountant or outsourcing it to an HR company or software.

As long as you have determined the amount of money you need to pay them and let them know about it well beforehand, everything will be fine.