Payroll and HR Software System

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Payroll refers to the process by which an employee gets compensated in form of salary, sometimes by shares, commission and other benefits .

Payroll deals with employees’ compensation while human resources takes care of employee relations and engagement.

A streamlined payroll process can be split into three stages — Pre-payroll, Pay run and Post-payroll.
Pre-payroll
Defining payroll policy : Payroll Basics, Pay Structure, Compensation policies Gathering input data : Attendance, Leave, Expense Claims, Allowance, Overtime Input validation : Seek necessary approvals after cross checking
Pay run
Draft Payroll : Validated data flows into the payroll system to process the payroll. This process results in net pay generation after statutory and necessary deductions. Approved Payroll : Necessary approval is obtained as per the company policy.
Post Payroll

Statutory compliance: CPF, Foreign Worker Levy, SHG, SDL payment.

Salary Payment & Payslip : Salary payment should be made by bank/cash/Cheque within 7 days after the completion of the month. Publish itemised payslip to employee self-service portal or hard copy.

Report Generation: Payroll Summary, CPF Summary & File Generation, Bank Summary & File Generation, Variance Report & reconciliation.

Payroll Book-keeping: Ensure that all salary and reimbursement data is kept archived for at least 7 years.

Income Tax : IR8A,IR21(to seek tax clearance when foreign employee ceases employment or posted overseas),Appendix A, Appendix B

Payroll outsourcing is the process of engaging an external vendor to handle the administrative and compliance functions of paying employees. It includes

Employee Onboarding,

Updating employee P-File,

Attendance/Time sheet Generation

Calculation of - Statutory compliance,

Overtime(if any),

Reimbursements

Bonuses/AWS,

Additions/Deductions(if any),

Submitting draft payroll for approval,

CPF File Generation

Bank File Generation

Payslip Generation & distribution,

Payroll summary & report submission

Income Tax file generation & IR21

Book-keeping

Offboarding

It varies from organisation to organisation. It depends on several factors, such as number of employees, whether a company has time to handle the complexity of the manpower laws regarding employment. In many cases, the time and cost of setting up and administering a local payroll cannot be justified, so the payroll functions are outsourced to a Payroll expert.
Companies choose to outsource payroll for several primary reasons:

Cost savings by avoiding the need to use in-house resources to comply with complex payroll requirements

Ease of ongoing administration of payroll through changes in personnel, reduction or increase in compensation structure and filing of reports to government authorities

Avoiding costly mistakes and tax compliance penalties Depending on their needs, a company may customize the payroll services that they outsource, while retaining control of other aspects.

Payroll processing inside your business is a time-consuming and tasking process. Keeping track of benefit deductions, new hires, allowances, paid and un-paid leave as well as CPF,IRAS,MOM reports can be frustrating tasks. Each month significant man-hours are spent preparing payroll and ensuring timely payslip distribution. Outsourcing payroll allows stakeholders to concentrate on their core business and frees up the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately benefit the overall organisational growth. Regardless of the number of people employed by your business, attending to payroll demands a great deal of time and attention to detail.
To add on to the already complex process, multiple currencies, multiple pay frequencies, complex commission & allowance determination, termination, different OT & Pay Structures and multiple pay periods requires the business owner to input critical amounts of data and double-checking for any keying errors. These time consuming repetitive clerical tasks should not be the precious hours taken away from a key management’s daily productivity. Employers only need to make contact with their outsourced payroll specialist by approving attendance & draft payroll once each pay period

Following are the few key factors to consider prior to outsourcing, to minimize any issues with service quality:
Types of services offered – basic or full on package
Security measures of confidential employee and payroll data
Cost involved for running payroll per employee/month, and any different pricing for ad-hoc payroll or higher volume.
Assistance on year-end tax forms generation /IR21 generation.
Assistance on visas and work permits application, avoiding delays or refusals.
Meets all manpower laws/legal compliance pertaining to employment of both local and foreign employees.
Advises the client of required notice periods, termination rules and severance pay
Advises the client on available grants and government paid leave claim submission.

Adoption Leave – 12 weeks
Annual Leave – starts from 7 days/year.(depends on the employment contract terms)
Child-Care Leave – 6 days/Year
Extended Child-Care Leave – 2 days/Year.
Maternity Leave – 16 weeks
Paternity Leave – 2 weeks
Shared Parental Leave – 4 weeks of your wife’s 16 weeks of maternity leave, subject to your wife’s agreement.
Sick Leave(outpatient) – 14 days
Sick Leave(hospitalisation)-60 days.(inclusive of 14 days outpatient sick leave)
Unpaid Infant Care Leave – 6 days/year
Apart from the above, leave like Un-paid Leave, Marriage Leave, Compassionate Leave, Garden Leave, Sabbatical Leave , etc depends on the employment agreement.
To know more about the leave eligibility & entitlement - click here

Managing talent within the organization, brand building, enhancement of corporate culture, the human resources department aims to bring out the best in employees, thus contributing to the success of the organization. The primary responsibility of the human resources department is to attract ,hire, engage and motivate talents
The HR department is also responsible for motivating employees by developing compensation packages that may include holiday or bonus awards, benefits and salary increments. HR also develops training programs and ensures that employees follow a general direction by reminding them of the organization’s goals and culture.
I am confident to say that at least 80% of the learning will be completed during our one-to-one interaction. This methodology will give you 100 percent success if you do additional exercises.

Many payroll activities are related to HR issues so the payroll and human resource departments must co-d ordinate shared functions. This includes recruitment, salary increases, bonus payments, benefit deductions, leave management and firing employees. The human resources department must be sensitive to the time devoted to payroll processing because as the champion of employee relations, they’ll face issues directly if salaries aren’t processed correctly and on time.
The payroll and HR departments are also privy to confidential employee data, including financial information, NRIC numbers, family particulars and home addresses. The two departments must work together to ensure that this information managed securely and doesn’t fall prey to unauthorized individuals or companies

Generally Payroll functions are covered by either the finance department or human resource department in most organizations. Essentially, payroll is numbers driven and deals with people and calls for knowledge of people management, pay policy and tax laws. Thus, many experts believe it should be positioned individually as a standalone department with deep finance and HR ties.

There are legal requirements associated with the maintenance of records and safe-keeping. Policies should be in place on where the P-files are stored and who has the authority to access them. Essentially, P-Files are kept for up to 7 years after the cessation of employment in Singapore.