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Itemised payslips are now mandatory in Singapore. Check out the list of payroll software that you can use according to the Ministry of Manpower (MoM).
Whether big or small, all businesses need a payroll system to ensure that each employee gets what they deserve for their hard work. Whether you use manual or automated payroll management, it’s essential to comply with the Ministry of Manpower’s (MOM) payslip regulations.
Now, if you run a small company, you can go with a manual payroll system, especially if you’re not ready to buy automated payroll software. However, keep in mind that this choice can be time and energy-consuming. Your accounting department may find itself stretched thin with all the compliance regulations they need to follow if you choose to go with a manual system.
You should also remember that the bigger your business grows, the greater your need for automated processes. Payroll software can save you a lot of time, effort, and even money.
An efficient payroll process ensures that each employee gets paid fairly. The payroll process involves calculating the gross salary using timesheets and log-ins. Payroll managers will deduct the tax obligations and benefits from the gross wage, eventually resulting in the employee’s take-home pay.
Each company in Singapore has a process that works for them. While businesses have their individual preferences for their payroll calculations, these general steps are often part of the standard payroll process in the country:
In 2016, Singapore’s Ministry of Manpower (MOM) made itemised payslips mandatory to avoid future payroll disputes with a company and its employees. They now have visibility over take-home wage with an itemised payslip, including their wage computations and deductions.
This itemised payslips rule requires companies to use a general payslip template that includes all necessary details surrounding an employee’s salary. Maintaining accurate employee details is beneficial to all parties involved, with the company avoiding potential liabilities due to errors. This move also lets the government get accurate salary and tax information, should they ever need access to it.
The frequency of distributing payslips depends on the company process. Some make weekly, biweekly, or monthly payments, but as per government regulations, these payslips have to be given together with the employee’s pay.
Suppose the company cannot give an employee’s basic salary and the payslip simultaneously. In that case, they have to be delivered in three (3) working days after payment in either a soft copy or hard copy form. As per MOM payroll regulations, each itemised payslip should include the following information:
Having a standard payslip format ensures the complete collection of all relevant information. This way, all parties have access to pertinent information related to their payroll.
The payslip template also lays out the entire computation process, ensuring transparency and consistency across the board.
Every business should handle payroll management efficiently and accurately. The process deals with confidential details that responsible parties should handle with care.
Using a trusted payroll system for your business would help streamline the process. It removes the monotony of repetitive work and catches errors faster. It also allows companies to save on labour and time without sacrificing the quality of work.
Business automation is now becoming a priority for the Singaporean government. This year, Enterprise Singapore launched the Productivity Solutions Grant (PSG). The program encourages businesses to pursue automation and digitisation in their processes. Companies can receive a maximum of 80% funding support under the grant.
This program is an excellent way for businesses to embrace modernity and support one another. To qualify, companies must be duly incorporated in Singapore. Companies should also use their preferred equipment or IT solution in Singapore.
There are several of automating your payroll process. First, opt for a payroll service provider. They are companies that create the system for you, so you’ll only have to adopt the process. This process is a lot faster and easier.
Second, use a software to automate your payroll disbursement. There are several on-premise and cloud-based payroll solutions in the market. We see larger corporations adopt an on-premise solution because of its advanced security features and it can be easily customisable to the company’s needs. However, it still requires a team with an advanced skillset. Not only are you paying for the software and server costs, but you also need to sustain the manpower needed to maintain it.
Meanwhile, cloud-based solutions are a preferred choice amongst SMBs. Most software-as-a-service or SaaS platforms offer their solutions at a monthly or per user subscription rate. Companies can enjoy enterprise-level service delivery through these solutions at a fraction of the cost.
Looking for a payroll solution for your company? Spenmo offers FREE payroll disbursement for remote and on-site employees!
List of MOM Compliant Payroll Software Providers in Singapore | |
Kayaroll |
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Payboy |
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Payday |
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QuickHR |
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Ramco |
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Singroll |
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Talenox |
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Image source: Pexels
It takes a lot of planning and careful consideration when choosing the right MOM payroll software for your company. The right program can help you save on time and effort for your payroll concerns. Before picking one, make sure that it can make your job easier to accomplish rather than becoming an added burden on your accounting and HR personnel.
Outsourcing payroll management can cost quite a bit of money, so it only makes sense to be careful in making your choice. When making this decision, it’s a good idea to consult the entire company. Multiple departments will have their input as to what factors you should prioritise.
To help you out, here are a few factors that might aid in your discussions:
The budget you allocate for your payroll software can depend on your company’s size. Many payroll software providers set limits for the number of employees you can add to a system or package.
This is an important factor to consider, especially for companies with a large workforce. To ensure you have enough wiggle room when you scale your operation, try to calculate your company’s potential growth for that year. This way, you won’t hit your software limit before the year is over.
It’s also wise to choose a flexible program that can scale quickly. Your business will eventually grow, so it only makes sense to find and choose a program that can grow with you.
Some payroll software options come with different price points that depend on how often you need to use them. How frequently you pay your employees in a month may affect your software costs.
If you already have a solid payroll system, this can be easy to write off. If you are a new business and you’re still trying to find a system that works best for you, this can be somewhat costly.
If your company’s payroll frequency is still in its experimental phase, it might be worth your while to find software with a flat rate. Doing so can save you some money and allow you to tweak your payroll frequency as much as you want.
Payroll software can come in different forms. Some providers host their program through a website, while others offer a downloadable desktop or mobile application.
The type of accessibility you choose for your payroll software depends on your company’s needs. If your needs are simple, don’t choose the option that has all the bells and whistles on it if you’re not going to use them anyway.
A desktop application will suffice if you have a more traditional office setup. If you want payroll management on the go, a program that allows access on various devices is a good choice.
One of the reasons companies consider using payroll software is to make the payroll process easier to accomplish. Look for a system with a user-friendly interface with straightforward commands and a system your team can easily learn, even if they aren’t tech-savvy. You should also find software that you can customise to suit your team's needs. The software should work well for your company and its processes and not the other way around.
Payroll management deals with many sensitive information such as full employee names, addresses, and bank details. You don’t want to leave such information in plain sight and easily accessible to anyone, whether online or offline.
A data breach in your payroll software can lead to disastrous results. Identity theft is a very real and dangerous threat, and lacklustre payroll security can leave your company and your employees vulnerable to it.
Before settling on a specific software provider, ask them about their security features. Ask about their firewalls, data encryption, and two-factor authentication options. Make sure to find a program you can trust with such critical information.
No payroll management software is perfect. Just like any other computer program, you may encounter one or more issues with it in the future so you must choose a software provider with a responsive and effective customer support team.
Prompt responses should be the norm, whether by phone, chat, or email. Customer service personnel should know how to walk you through any problem you encounter and easily troubleshoot these.
Automating your accounting and payroll disbursement can give you peace of mind because you save time and even money with its use. With a payments software like Spenmo, you can manage all of your company payments including your employee salary. We list down some of its amazing features below:
✅ Bulk payroll processing at no added cost
✅ Confidential disbursements: salaries show up as a single lump-sum payment
✅ 0% FX rate markup for remote employees
✅ Unlimited corporate cards for all employees
✅ Access to an integrated payments platform: manage all business payments and reconcile them with your accounting software of choice
Book a demo to find out how you can get started with Spenmo today!
Accounting software can help you deal with your company’s bookkeeping and can help keep track of expenses, sales, and even company tax payments. On the other hand, payroll software deals with salaries, employee taxes, and other payroll concerns. Some accounting software, like Quickbooks and Xero, can do both.
Here are the primary employer responsibilities for payroll in Singapore:
You have the following choices on how to pay your overseas employees:
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