The payroll starts once a Singapore company hires its first employee. For this purpose, the company must register as an employer followed by the registration of the employees with various funds and authorities. The payroll is usually handled by the Human Resources (HR) department, however, it is not uncommon for businesses to hire accounting firms in Singapore to perform these tasks, especially considering they can save important amounts of money by not creating an entire in-house department.
Payroll processing implies respecting specific regulations, however, compared to other jurisdictions it is worth noting that Singapore imposes fewer requirements for employers. For example, there is no obligation for companies to withhold taxes for the salaries they pay to employees, they are only required to withhold the contributions associated with the wages.
Payroll setup in Singapore also implies:
It is important to note that paychecks must contain specific information, such as the date of payment, the basic salary and the net amount, as well as the contributions (the amount and the percentage).
If you need payroll services, our accountants in Singapore are at your service in order to ease the tasks associated with the processing and payment of salaries. We also provide consultancy services in order for you to simplify payroll procedures.
Some of the most important steps when opening a company in Singapore are related to its registration with several authorities in order to pay the mandatory contributions as an employer.
In order to be able to pay the taxes on salaries and the social contributions related to each employee, a Singapore company must register with the Central Provident Fund (CPF) as an employer. Then, once the company starts hiring employees, it must also register them with the same fund.
It should be noted that the same procedure is available for foreign companies hiring employees in Singapore, therefore branches and subsidiaries have the same obligations are domestic ones from a payroll point of view.
When using the services of our accounting firm in Singapore, the payroll process, including the registration with the CPF can be handled by us so that you focus solely on the business operations.
The registration of employees for payroll in Singapore implies filing several documents with the CPF, however, these are slightly different for Singapore nationals and foreign citizens. While Singapore citizens will only need a copy of their IDs and the National Registration Identification Card for permanent residents, in the case of foreign citizens, the following additional papers are required:
For detailed information, our accountant in Singapore is at your service.
You can read about payroll in Singapore in the infographic below:
Apart from the salary, Singapore employees are also entitled to other benefits among which:
All these types of incomes must be included in the payroll in Singapore. The salary is calculated for a full month’s rendered services.
As mentioned above, a Singapore company must contribute to specific funds, among which:
When hiring foreign workers with S passes, the employer is also required to pay specific levies for each employee.
Singapore has specific regulations when it comes to payroll and our accountants can guide you through the legal requirements that must be met in order to respect them.
Apart from our payroll services, you can also rely on us for audit services in Singapore.
In 2017, specific statutory reporting requirements were enforced for Singapore companies. Employers are now required to file employment income documents electronically if they have more than 10 workers. The documents must be filed by the 1st of March each year for the previous year.
Singapore companies with foreign employees must also file Form IR21 for tax clearance purposes upon commencement, relocation, or termination of the work contract. The form must be filed at least one month before the change takes place. In the case of relocation, the form must be filed only if the employee will work abroad for at least 3 months.
Our accounting firm in Singapore can file all required documents with IIRAS in due time in order to avoid penalties.
From a taxation point of view, it should be noted that:
- the first 20,000 SGD earned as a salary are not taxed in Singapore;
It is also worth noting that foreign employees are not required to make social security contributions in Singapore.
Among the services provided by our accounting firm in Singapore there is payroll administration from the beginning of the activities, which refer to the setup of the corporate bank account from which all payments will be made. Also, representation with the Singapore financial authorities is also offered in order to have all formalities in place from the beginning. Later, all relations with these authorities will be handled by the accountant representing your company.
We can also advise on various employment-related matters, such as the creation of compensation and benefit schemes for employees. You can also rely on us for assistance in the payroll of foreign employees and guidance on the provisions of the Employment Act.
Also, if you have any questions about our accounting services in Singapore, do not hesitate to write to us.
Payroll is one of the services that require a lot of attention as it needs to be managed on a monthly basis. Salaries, overtime, sick leave as well as vacations must be verified and considered when administering the payroll. Also, the fact that each employee has its own salary and benefits, can make it quite difficult for an accountant to handle such a large volume of work. This is where an outside accounting firm can be of help.
With the help of our payroll services in Singapore, our accountants will pay attention to all the details and specifications of each employee by handling the monthly payroll. Also, ensuring all documents associated with this task will be filed on time, thus removing the risk of being subject to fines imposed by the local authorities.
Through our monthly payroll services, your company will benefit from accurate and updated data input into the accounting system, and the issuance of the payroll statement and generation of paychecks.
Our Singapore accountants will also handle the creation of all payroll reports, as well as the preparation of annual statements related to employees’ salaries and employer’s contributions with the purpose of obtaining various benefits.
Also, if you need audit services in Singapore, we are at your service with tailored assistance in such matters.
Starting with 2017, the Singapore Inland Revenue Authority requires employers to file electronic employment income statements. This requirement is available for companies with at least 10 employees. The statements must be filed by the 1st of March every year.
Companies with foreign employees are also required to obtain tax clearance which implies filing Form IR21 one month before the worker leaves the company temporarily or permanently. This requirement is also in place for foreign employees relocated to posts in other countries.
Payroll is one of the most sensitive and time-consuming tasks in the accounting department, and if you need assistance, our accounting firm in Singapore is at your service.
Payroll implies handling a large volume of documents, thus imposing a company to create an entire department to respect all provisions of the law. This is where an accounting firm in Singapore can be of help as it has the necessary infrastructure to take over or set up from scratch the payroll in a business without going through the additional procedures.
Our accountants in Singapore will make sure all employment contracts are duly recorded, all monthly paychecks are issued on time, all salaries are prepared in accordance with the status of the employee in the respective month, as well as the filing of documents with the IRAS in due time.