The days of paper paychecks are long gone. With the rise of technology, companies have moved towards electronic payments and many businesses no longer even issue paper checks. This is a good thing for both employers and employees because it saves time, money, and eliminates mistakes that often happen when processing payroll by hand. But before you make the decision to install software designed to handle your company’s payroll needs, there are some things you should consider first.
- Does the payroll software meet your needs?
When it comes to choosing the payroll software in Singapore that best suits your needs, you have one important question: does this program meet my requirements? You need a system which is reliable and robust enough for your business. If not, then all of its features are useless because it will never actually work in practice.
Choosing an effective payroll software in Singapore can be difficult as there’s such a wide range available on different platforms with many differing prices. You may want to shortlist payroll software systems first and go through their features and customer reviews before deciding to purchase for your business.
- Check your recordkeeping practices.
When you switch to payroll software, there are a few things that will change. You might want to rethink how you keep your records when it comes time for taxes and other filings because the new system may not do what’s expected of it. As an employer, some key documents require storing on file such as employee forms or tax deposits. However, with these adjustments in mind, make sure any data is stored digitally so nothing falls through the cracks at filing season.
- Establish your employee wages.
When you pay your employees, there are many different things to consider. You have two options for how much they get paid: an hourly rate or a salary. Generally speaking, the latter is less taxing on payroll because it’s just one fixed amount each month that doesn’t fluctuate with hours worked each week like wages can do based on their exempt status from overtime regulations. For this reason alone, most people opt for salaried positions over hourly ones if possible so make sure to weigh both before making any decisions and don’t forget about setting up exemptions as well!
Some details in which employers may differ when paying out salaries include whether they offer bonuses during busy seasons such as Christmas time; what percentage of health insurance costs are covered.
- Choose a specific pay period.
If you are switching from a biweekly to monthly pay period, check your employees’ current hours and make sure they will be compensated.
When setting up the payroll software for new hires, you’ll have to set-up their pay periods so that it’s consistent with how frequently we’re paying them now. For example: if your company is currently using bi-monthly payments then this would also mean every two weeks instead of four-week intervals each month.
- Be well-versed with tax rates and other dues, including their deadlines.
You have to be careful about taxes if you are an employer. You will need to withhold income tax from employee wages and contribute toward unemployment, social security, medical insurance, as well as pay your own share for these things.
In addition to income taxes, it is important for you as an employer to know when your payroll taxes are due. It can be difficult if you have employees on different schedules because not all employers will have the same tax dates so make sure that this information is entered into any software processing them. This will help in calculating how much of each tax owed and save time figuring out what’s left over from a paycheck or updating withholding rates if necessary.