Payroll Outsourcing

5 Common Payroll Compliance Mistakes

To keep any business running smoothly, payroll compliance is one of the biggest factors to handle precisely. Several mistakes are often spotted in payroll that can lead to the downgrading of your business. Strict adherence to a fixed monthly schedule of fair monetary disbursements to employees and updation of provident funds, gratuity, bonus pensions, etc., contribute to a healthy payroll system. Let us get a close look at some common payroll mistakes to better avoid them:

#1 Careless Documentation

Improper documentation of employee data can lead to major mistakes in monetary disbursements. Keeping manual records of information like working hours, leaves etc., are prone to mistakes. Payroll outsourcing services can be a great way of keeping clean records and fair payroll. Professional payroll services providers use advanced technology that stores error-free records and make efficient salary calculations.

#2 Improper Classification of Employees

A properly functioning business should have every working employee classified under a certain category that determines the legal requirements of their salary structure. Misclassifications, like listing a part-time employee as a temporary employee, can lead to legal lapses and have the business face harsh tax penalties.

#3 Delayed Disbursements

One of the most common payroll mistakes companies make is delayed payment of salaries to the employees. Under the Payment of Wages Act, 1936, businesses can provide their employees with timely disbursement of monthly salaries. Delays due to unavailable timesheets and employee records can be fixed by payroll outsourcing if your company doesn’t have the right provisions.

According to reports, the median monthly income in Singapore in 2020 had declined by 1% from that of 2019. 

#4 Faulty Tax Filings

Not adhering to a fixed timetable for the mandatory payroll compliance of Professional Taxes (PT) and Tax Deducted at Source (TDS) can cause your company to face heavy late payment penalties. It is important to deduct TDS and file Income Tax returns on time.

#5 Inadequate Security

Not maintaining proper safety protocols while storing employee information can lead to payroll fraud and data theft. Investing in a proper security system to preserve confidential data is a must.

Wrapping Up 

Dealing with monthly payroll compliance issues? It’s time to hire the payroll outsourcing services of GOHRBPO. From managing employee data and attendance to processing payroll and expense claims, we handle it all. With our unmatched quality of work, we have become one of the best Singapore payroll services providers.

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