Outsourcing your payroll tasks can be a feasible choice in the context of Singapore, considered a key center for global trade. The city-state has a very positive outlook towards international business, and setting up an office here has its benefits. The country has a low corporate tax rate of 17%, which is one of the key reasons why so many global companies look forward to setting up an office here. Also, companies get to benefit from a single-tier territorial tax system, which implies that incomes sourced from outside the country are generally not taxed separately. International businesses can also benefit from the network of DTAs that can make it easier to operate here with additional tax burdens.
How Can Payroll Outsourcing Assist You?
The availability of a skilled local workforce and concentrated bureaucracy creates a profitable proposal for doing business in Singapore. However, companies must comply with a set of key governing regulations, especially when it comes to payroll management. In this context, outsourcing the payroll tasks to a Singapore-based service can be a further beneficial proposal. A competent service not only accomplishes all aspects of payroll compliance but also provides expert tax consultation when required.
Ensuring a Compliant Business
The key law that dictates the various aspects of payroll management is the Employment Act (EA). Companies need to ensure that the month-to-month operations are EA-compliant, or risk facing penalties from the authorities. A suitable payroll outsourcing singapore service effectively ensures that the salaries are distributed within 7 days of the last pay cycle, which is a mandatory requirement for companies.
The law requires all companies to pay full salaries at least once every month, and a failure to do so can also draw strict consequences. Essentially, you need a trusted service that can handle the wide range of tasks implied by payroll management, from EA to income tax compliance. Also, companies are liable to fulfill different levies like the SDL and the FWL, which are handled by the designated service.
