5 Frequently Asked Questions about Payroll Outsourcing

Payroll processing is one of the time-consuming and complex tasks in a business. If you are new to this process, then the whole process can be pretty confusing. We have penned down a few of the most important and most frequently asked questions on payroll processing.

Can I Outsource My Company’s Payroll Functions?

This is one of the most common queries that most businesses have. If they find it difficult to handle payroll processing in-house, the best solution is to outsource it to an agency that has experience in it. This is a very effective measure as you need not spend time on payroll functions but rather can focus on your core business functions. This will prove to be highly b beneficial in favor of your business down the lane.

Should I Use Payroll Software?

Payroll software is a good solution for businesses to keep a track of their employees’ salary and taxes and ensure smooth transactions. Since the automated systems take care of most of the tasks, you don’t have to break a sweat doing everything manually. This simplifies the whole process and allows you to concentrate on other business aspects.

What Is the Need for Filing Form IR21?

When non-Singapore citizen employees cease employment with an organization in Singapore, plan to leave the country for over 3 months or opt for an overseas posting, it’s essential to get tax clearance for that employee. The employer has to file IR21 form and withhold all dues for the employee for the purpose of tax clearance. This is applicable for all work pass holders, which also includes PEP (Personalised Employment Pass) holders.

What Are the Forms Needed for Reporting Employee Income?

All employers have to declare the earnings of the employees by filing the needed tax forms given by the IRAS (Inland Revenue Authority of Singapore) for the employees hired in Singapore before 1 March every year. These forms are IR8A, Appendix 8A, Appendix 8B and Form IR8S.

What Are Third-Party Liabilities?

Third party liabilities mean holding employee’s share of payments for retirement plan investments, insurance premium, and other benefits. The employee decides the amount to be withheld for the payments.

What Is Worker Compensation Insurance?

Worker compensation insurance means the policy to pay for an employee’s medical care in case if he or she is injured or facing health issues while at work. The payment is done to the employee based on the worker’s compensation law.

These are some of the frequently asked questions about payroll processing.