Risk With Payroll Outsourcing (And How To Avoid Them)
Singapore payroll processing has all the potential to be a hindrance to a small business owner. It is especially true for multitasking business owners. The solution is simple; outsource payroll in Singapore.
Companies know that payroll is time-consuming and complex. It can steal your focus from the business’ core goals.
It is why many hire payroll services in Singapore to maximise efficiency and save time and effort. However, it is easier said than done.
You know that risk is an inherent part of all business decisions. And you sure have all goody-goody tales about outsourced payroll in Singapore. However, before you do so, you must investigate if there is any risk with payroll services.
After all, you are responsible for protecting your data, especially related to your business’ financials, payroll and employees. It is your job to see that you employ the right provider of payroll services in Singapore.
Here is a list of potential risks with payroll services that will help you decide whether to outsource your payroll.
Potential Risks Involved in Outsourcing to Payroll Services
Finding the right payroll services firm to care for your needs takes time and effort. Then, you have to transfer your sensitive data to them. The risk here is that it may only happen partially and create compliance-related problems.
The problem indicates that the provider is not that experience or lacks the required technologies and tools.
You can overcome it by asking them about the process. Know what it takes to transfer your data safely to a 3rd-party payroll provider.
Even when employing them, ask them about a trial or a parallel payroll run for your first payroll cycle with them. It will help you uncover potential risks involved.
Lack of Expertise
Payroll processing is a complex task. The processor assigned to you has to know the rules and regulations involved. They also need to be updated with the latest labour and tax laws changes. The task becomes even more complicated if you field a geographically distributed team.
It would help if you had an experienced payroll processor. Inaccurate payroll computations can harm your relationship with employees and make them unsatisfied or distrust you. Incorrect payroll may even attract the attention of regulating agencies. And you may have to provide a satisfactory explanation. It may even lead to a fine or penalty.
Top payroll services in Singapore maintain websites to communicate with their clients. Visit these and read customer reviews to get a bearing on their quality of service and issues raised by customers and judge the ability of the provider to resolve them.
You can also visit their social media channels for the same purpose. Read their blogs to see how they have handled the latest announcements and changes in the rules and regulations.
Poor Service Management Support
Let us assume you are managing your payroll in-house, and one of the employees or a part-timer or a contractor has an issue with the payouts. In this case, you will be able to respond quickly and resolve the complaint fast.
However, with a provider of payroll services in Singapore, there is an added layer of communication, and inevitably there are delays. The response also depends on the communication schedule you agreed on with them and their workload.
And you will have the hard task of pacifying your top performer threatening to resign unless the issue is solved immediately.
You can avoid this by knowing how their service management support works and how far you can rely on them for quick results. Check whether they can allocate a dedicated manager to you who you can contact to resolve the issue immediately.
Security of Your Data
Your business’ financial, payroll, and employee data is sensitive. You need to ensure that it is protected at all times.
On your side, you can follow the best data protection procedures and practices. You can also invest in the best antivirus software tools. However, when it comes to outsourced payroll in Singapore, you need to be cautious.
You need to understand that data breach is a significant risk with payroll services. And before transferring it to a 3rd party, you must look at the measures they have in place.
You need to know the firewall, antivirus, anti-phishing, anti-malware, and anti-ransomware tools they use to avoid a data breach. Ask them if they are insured against such an event.
You cannot hire any outsourced payroll in Singapore. You have to investigate, and understand the risk involved in working with payroll services, and engage the provider who has neutralised them. Contact us to know our customised payroll solutions.