Payroll in Singapore is a serious business; everything needs to stack up and, your processes can be subject to inspection at any time. If things aren’t done properly, then, fines and even penalties may be imposed by the government. In general, employer-specific payroll entails that the correct records are kept and that the correct amount of money, including tax, has been paid to the relevant parties. You can lessen the likelihood of errors and penalties by understanding some key aspects of payroll. Let’s see things that you should consider when running company payroll in Singapore.
Payroll processing requires an understanding of governmental minimum wage rules, some local authorities have a minimum wage that is higher than what the government mandates. The higher charge will apply if this is the case. When dealing with your company payroll in Singapore it’s crucial to keep in mind that minimum wage regulations apply to all employees, furthermore, several jurisdictions mandate paid rest breaks and have regulations requiring you to pay employees by a specific deadline.
Hiring new employees
When your business grows and you need to recruit a new employee, you must register them to a designated government body shortly after they start working for you. The government agency will confirm that your employees are legally permitted to work in the country and provide you with the relevant tax forms. Usually, if the employee is working directly for you and not, a contractor then you will be responsible for filing the correct information yourself.
Employer and employee liabilities are the two types of employment liabilities that determine whether the act is your responsibility or, that of your employee. If your employee works directly for you then, normally, you will be responsible for withholding finances and paying government and local employee taxes, as well as your own amount, as an employer. You must also file your taxes with the appropriate government agency, if you don’t follow the rules, you could face civil and criminal fines. Click here for info on structured finance, which is popular today.
Keeping proper records
Most financial governing bodies require that you maintain certain records for both exempt and non-exempt employees. They will also mandate how long records must be kept and where they need to be maintained. The documents you’re required to keep include: employment contracts, time cards and records that show deductions from wages as well as any additions. You also need to check with the local governing body to see if they have record-keeping requirements over and above the usual.
Remember, things change
Payroll regulations are subject to change, as is everything so keep an eye out for changes that will affect the current year as well as the following one so that you can be prepared well in advance. The hiring of new employees, salary payment schedules, lunch period requirements, pre-tax, benefit tax computations, payroll audit, pay requirements, timekeeping and payroll reconciliation are just a few of the facets of payroll change. If you are ever in doubt then, don’t be worried, just be sure to contact the administering agency or a payroll specialist if there is anything that you are unsure of.