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Buying Payroll System in Singapore

Buying Payroll Software in Singapore? Here’s Everything You Should Know

from  Unit4 Prosoft November 9, 2021 | 5 min read

Whether your business employs less than 50 employees or manages a large workforce, getting payroll software in Singapore can be a big help. This technology skips any part of the manual payroll process, allowing you to compensate your employees accurately and with great ease.  

Unlike traditional payroll systems, online payroll solutions manage, organise, and calculate employee wages automatically. There’s no need to manually run the payroll by hand, giving your HR more time in other valuable areas for your business.

More About this HR Technology

At its simplest, payroll software is an on-premise or cloud-based solution that automates all the requirements for running payroll. Some of the standard functions found in payroll systems include:

  • Employee self-service portal. This software feature puts all of your employees’ payroll data at their fingertips. Through this portal, employees can access their pay stubs, W-2 forms, paid time off balance, and more.
  • Deduction for withholdings. Payroll administrators can calculate deductions for withholdings, such as taxes, insurance and retirement contributions directly in the system.
  • Tax filing services. Most payroll solutions offer online tax filing services for IRS forms, such as W-2s, 940, and 1099s.
  • Direct deposit. Your employees don’t have to worry about losing their checks because their money goes directly into their bank accounts.
  • Reporting. Many payroll systems provide a comprehensive view of budget, taxes, workers’ compensation and other payroll data.

How Does an Online Payroll System Work?

Payroll software integrates with other business systems to ensure a better payroll management process.

For example:

When a time and attendance system is integrated with a payroll solution, it’s easier to calculate the days and hours employees worked in a specific payroll period.

The software integration eliminates the idea of going through disparate systems, which can prolong the payroll processing, cause data errors, and lead to inefficiencies.

How Much Do Payroll Solutions Cost?

Like other HR solutions, payroll software also has a base price and additional costs. Payroll system vendors in Singapore charge an extra fee per additional employee per month.

Type of expenses

Price range

Basic flat rate

S$10-S$150 per month

Additional rate

S$4-S$15 per employee per month

The good news is that most payroll software providers offer a free version of their software. You can request a 14-day demo or use the system for free within the 7-, 15-, 30-, or 60-day trial. Some software solutions are even offered 100% free, however, free versions have many missing features.

Tips for Choosing the Best Payroll Software for Your Business

1. Know Your Business Needs

The first step to selecting a payroll system is understanding what your business needs. You can’t simply check for software features without first knowing the sort of features you will need.  

Here are a few questions you can ask yourself to get a better sense of your needs:

  • What is the size of my business?
  • How much can I pay for a payroll solution?
  • Do I employ salaried workers or hourly wage earners?
  • Are my employees getting paid weekly, bi-monthly, or monthly?
  • Are my employees paid when they work overtime? Do they receive bonuses?

2. Identify the Features You Need

Once done assessing your business, identify the features that suit your needs. Suppose you currently have 30 employees but plan to hire more people next year. A payroll solution that can accommodate your projected HR growth will be ideal.

payroll software singapore

It’s also good to have a payroll system that’s easy to use, has security features and other essential tools, including automatic payroll, online salary payments, reporting and analytics, time-off management, garnishment payments, and more.

3. Consider Software Integrations

Look for flexible payroll software in Singapore that allows integration. Not only does payroll integration ensure smooth payroll processing, but it also benefits your business in many ways. Below are a few benefits of using an integrated payroll system:

  • Save money on labour and administrative costs
  • Electronic storage for records and documents
  • Easy access to up-to-date employee data
  • Better and accurate reporting

4. Check Compliance with Current Legislation

Payroll non-compliance leaves you at risk for financial loss. If you’re a first-time offender, you must pay a fine of between S$3,000 and $S15,000, and face six months of imprisonment. If it's a subsequent offence, the fine ranges from S$6,000 and S$30,000, and the imprisonment lasts up to 12 months.

payroll system singapore

For this reason, you must choose a payroll system that stays current in the ever-changing tax laws. Your software should automatically compute provident fund (PF), professional tax (PT), employee state insurance (ESI), and labour welfare fund (LWF), among other things.

Summing It Up

Thanks to payroll software, you ensure spot-on and on-time employee compensation while boosting the morale and overall productivity within your organisation. Add up the benefits of optimising your processes and protecting your business from compliance risks.

Speaking of payroll systems, Unit4 Prosoft HRMS offers the same benefits. Our human resource management system has a payroll module that helps HR teams manage the pre-payroll, actual payroll and post-payroll activities with great speed.

Learn more about our ProSoft HRMS Software here.

Unit4 Prosoft

Unit4 Prosoft have been serving customers in Asia for 30 years and is trusted by over 1,000 businesses across the APAC region in the manufacturing, healthcare, retail, construction, and professional services industries. Unit4 Prosoft HRMS has modules that support every aspect of your HRMS programs and allows you to manage people’s entire hire-to-retire cycle with a central control center and database. Your people get the flexibility and freedom to have what they need—how, when and where they need it.