Payroll Services Singapore: How Are Payroll Services Benefiting Small And Medium Enterprises?

 

How Are Payroll Services Benefiting Small And Medium Enterprises?

payroll services for SMEs in Singapore

1. Payroll Services

Payroll services are a great way to manage employee information and pay them on time. There are many different types of payroll services out there, including online payroll services, mobile payroll services, and paperless payroll services. Each type of service offers its own unique set of features and benefits.

2. Small Businesses

Small businesses have been using payroll services for years, and they provide a lot of benefits to these companies. First, payroll services allow employers to track their employees’ hours worked, overtime, and vacation time. Second, they help keep records of taxes and deductions. Third, they make paying employees easier than ever before. Fourth, they offer a secure method of storing sensitive data. Finally, they make managing employee information much easier.

3. Medium Enterprises

Medium-sized businesses have been using payroll systems for decades. These systems are designed to meet the specific needs of medium-sized companies. They are often built around a single function, such as human resource management or accounting. However, some systems are designed to handle multiple functions.

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4. Paperwork Reduction Act (PRA)

The Paperwork Reduction Act was passed in 1980 to reduce paperwork and streamline government processes. The PRA requires agencies to conduct public rulemaking procedures for any proposed collection of information. Agencies must publish a notice of intent to collect information in the Federal Register. After the agency receives comments about the proposed collection, it may revise the proposal based on those comments. If the final version of the collection meets the requirements of the PRA, the agency submits the final rules to the Office of Management and Budget (OMB). OMB reviews the rules and either approve them or sends them back to the agency for revision. Once approved, the agency publishes the final rules in the Federal Register.

5. Electronic Data Interchange (EDI)

Electronic Data Interchange (EDIFACT) is a standard format for exchanging business transactions between organizations. EDI is a computer-based system that uses electronic messaging to exchange documents and data among businesses. EDI helps automate business processes and reduces errors.

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6. Electronic Funds Transfer (EFT)

Electronic funds transfer (EFT) is a term used to describe the movement of money electronically. EFT includes direct deposit, automated clearing house (ACH), and check processing. Direct deposit refers to the automatic deposit of a paycheck into a bank account. ACH refers to the electronic transfer of payments between financial institutions. Check processing involves the conversion of checks into electronic images.

7. Electronic Signature

An electronic signature is a digital representation of a person’s signature. An electronic signature can be created by scanning a physical document and converting it into a digital file. In addition, an electronic signature can be generated by typing text directly into a computer program.

Book a free trial for the accurate payroll software in Singapore.

Source: https://quickhr.co/features/payroll

 

Work Injury Compensation Act (WICA): The HR’s Guide

With the rising workplace fatalities throughout the year, HR leaders play a vital role in ensuring good safety and health practices in the workplace. This involves maintaining regulatory compliance that falls under the Workplace Safety and Health (WSH) mandatory guidelines.

One of the most important WSH obligations HR needs to prioritise is the Workplace Injury Compensation Act (WICA) that protects both employees and employers when workplace incidents happen. Here’s everything you need to know about the Work Injury Compensation Act.

What is the Work Injury Compensation Act

The Work Injury Compensation Act (WICA) establishes a streamlined and simplified system that allows employees to make claims for work-related injuries or diseases without having to engage a lawyer and commence formal civil proceedings. [1]

However, employers remain liable for claims under both WICA and common law from all employees.

In accordance with WICA, all employers are required to acquire and maintain work injury compensation insurance to fulfil the responsibilities for compensation that may arise under the legislation.

💡Note: All insurers must be approved by the Commissioner of Labour before they can offer WICA-compliant policies.

Who Are Covered under the Work Injury Compensation Act

The Work Injury Compensation Act (WICA) covers all local or foreign employees who are under a contract of service or contract of apprenticeship, regardless of salary, age role, or citizenship. [2]

However, there are some exceptions. It doesn’t cover the following:

• Independent contractors and self-employed individuals
• Domestic workers
• Uniformed personnel including members of the Singapore Armed Forces, Singapore Police Force, Singapore Civil Defence Force, Central Narcotics Bureau and Singapore Prison Service

Generally, an employee who suffers any injury from an accident arising out of and in the course of employment is eligible for compensation under the WICA.

With the advent of remote working arrangements, the Ministry of Manpower (MOM) has confirmed that employees will be able to claim compensation for an accident that took place outside the employer’s designated workplace (i.e., the office), as long as it arises out of and in the course of the employment, such as when an employee is working from home or at a client site.

Employees are also eligible to make a claim for accidents that happen outside of Singapore. This further shows that the company’s obligation to sustain a safe working environment doesn’t begin and end in the office.

Find out more here to see which scenarios are covered under WICA.

💡Note: Employees who have been infected with COVID-19 due to work activities or exposure arising out of and in the course of work will be able to claim compensation under the WICA regime. [3]

Who Can Claim for Work Injury Compensation

All eligible employees can make a claim under the Work Injury Compensation Act (WICA) if they have: [4]

• Been injured by an accident arising out of and in the course of employment.
• Been injured while on an overseas assignment.
• Contracted an Occupational Disease.
• Contracted a disease from exposure to biological or chemical agents at work.

Employees remain eligible to claim compensation even if:

• They no longer work for the employer or their work pass has been cancelled.
• The accident happened while they were on an overseas assignment.
• The accident happened while on a work-from-home or other flexi-work arrangement that they agreed with the employer.

Dependents of an employee who died due to a workplace accident can also make a claim on behalf of the employee. [2]

What You Can Claim under the Work Injury Compensation Act

Employees who are covered by the Work Injury Compensation Act (WICA) can claim for the following types of compensation benefits: [5]

• Medical leave wages – this is for days an employee was issued with medical leave or light duty, due to a work injury or disease.
• Medical expenses – this includes the employee’s hospital bills, medication and other charges, due to the work injury.
• Lump sum compensation – this is for the employee’s permanent incapacity, current incapacity or death.

The amount of compensation to which an employee is entitled under WICA depends on whether the employee suffers incapacity (permanent, current, or temporary) or dies as a result of the accident.

• Permanent incapacity is based on a doctor’s assessment after the medical condition has stabilized.
• Current incapacity may be based on the extent of incapacity at the 6-month mark as most injuries stabilise within 6 months from the date of the accident.
• Temporary incapacity refers to an injured employee being temporarily unable to perform work and earn usual wages after being placed on medical leave.

Compensation for temporary incapacity consists of:

• Medical leave wages for working days covered by doctor-granted MC, light duty, or hospitalization leave, up to one year from the date of the accident.
• Medical expenses related to work accident for medical treatment received within one year from the date of the accident, or up to a maximum of $45,000, whichever is reached first.

Click here to know more about the limits for each type of compensation.

What to Do during a Work Injury Claim

The claim process differs depending on the type of case. For fatal accidents, HR managers need to notify MOM as soon as possible and submit an accident report within 10 days from the date of the accident.

For non-fatal accidents, make sure to submit an incident report within 10 days from the date you were first notified of the accident. An employee needs to be hospitalized or given any instance of medical leave or light duty to be considered as a non-fatal accident. [6]

1. After reporting the accident, the employer must continue to pay medical leave wages and medical expenses. The designated insurer or MOM will send you a medical report form.
2. Once the medical report form has been paid and sent to the hospital or clinic, the completed report will be sent to the designated insurer or MOM.
3. Then, you'll receive the notice of assessment (NOA) or notice of computation (NOC) where the compensation amount will be included.

💡Note: If you’re waiting for payment from the insurance company, you must still pay the employee’s medical leave wages and medical expenses first, and get reimbursed later.

If they have an outstanding claim under the Work Injury Compensation Act (WICA), employers are not allowed to send their employees home against their wishes.

Key Changes to WICA in 2020

Several changes have been made to the WICA to further build a safe and responsible working environment for all employees and protect them from unfair compensation. [7]

• From 1 January 2020, the minimum and maximum amounts have been increased in respect of compensation for death and total permanent incapacity (including current incapacity) as well as the maximum limit for medical expenses.

  The range of compensation for death falls between $76,000 and $225,000. While the compensation for total permanent incapacity ranges between $97,000 and $289,000.

  The medical expenses are set at a maximum of $45,000, or up to 1 year from the date of the accident, whichever comes first.

• From 1 April 2020, the salary threshold for non-manual employees requiring work injury compensation insurance will be increased to $2,100, regardless of where they work. It will further increase to $2,600 from 1 Apr 2021.

  Employers must still acquire insurance for all manual employees, regardless of salary.

• From 1 September 2020, all employees who have been placed on light duties because of work injuries will be compensated for their lost earnings based on their average monthly earnings.

  Every employee on outpatient or hospitalization sick leave will continue to be compensated for their lost earnings.

• From 1 September 2020, employers are required to report all work-related medical leave or light duties to MOM.

Employers are likely to be affected by these changes to WICA even while many of their employees continue to work from home.

Conclusion

For HR managers, it's important to prioritize the employees' well-being by maintaining regulatory compliance with the WICA policies. Keep yourself updated with the significant policy changes and review relevant employment guidelines regarding work-related injuries. Let us all build a better world that enhances employees’ health and safety in the workplace.

Source: Work Injury Compensation Act

7 Tips to know before buying mom approved Payroll system in Singapore

 7 Tips to know before buying mom approved Payroll system in Singapore  

What is a payroll system?  

 

Payroll System is a software application that helps companies manage their employees’ paychecks and taxes. It is designed to help employers track employee hours worked, calculate wages, and generate reports about payroll.

 

1. Know what kind of product you need  

 

The first step to choosing mom approved payroll software is to understand what type of system you want. Do you need something simple but flexible? Or do you need a more robust solution to keep things organized? A payroll system should allow you to track employee information including hours worked, deductions, overtime pay, and taxes. In addition, you’ll need to consider whether you need to pay employees bi-weekly or monthly, how many employees you have, and if they work seasonal, part-time, or full-time jobs.

 

2. Look at the features of the payroll system  

 

Once you know what type of product you need, look at the features offered by each option. Payroll systems vary significantly in terms of functionality, ease of use, and flexibility. You may find some systems easier to navigate than others, but the best design will integrate with other accounting applications, offer customizable reports, and provide real time access to data.

 

To ensure you make an informed decision, take advantage of online demos, ask potential vendors about their return policies, and read customer reviews.

 

3. Compare prices of each payroll software in Singapore  

 

One of the easiest ways to save money is by comparing pricing. While the price of payroll software varies widely among companies, one thing is certain—the lower-priced systems aren’t necessarily the best choice.

 

Take into account the size of your business and how much you need to spend, as well as any discounts you may qualify for. If you don’t want to go over budget, you may want to consider investing in a low-cost entry-level version of your payroll system until you get comfortable with its capabilities.

 

If you’re looking to upgrade your current system, consider purchasing add-on modules and customization options instead of paying for a complete overhaul.

 

4. Find out who sells your system  

 

If you choose to buy a system from a third-party company, make sure that it offers support and training services. Ask questions about integration issues, what happens in case of downtime, and how long it takes to recover after an issue occurs. It would help if you also determined how often the vendor provides updates and security patches.

 

5. Consider licenses  

 

Many businesses purchase a perpetual license for their payroll software. Perpetual licenses cost less upfront but prevent you from upgrading your payroll system without purchasing additional upgrades. Check the cost of the annual renewal fees to avoid getting stuck in a cycle where you need to renew your software every year.

 

6. Don't forget security  

 

Regardless of the amount of flexibility you’d like to give your payroll software, there is no denying that it holds sensitive information. Make sure you take steps to protect your business data both now and in the future.

 

Choose a secure encryption method and implement regular backups, change passwords regularly, and create strong user accounts to reduce the risk of unauthorized access. In addition, make sure the vendor uses the latest SSL technology and that you receive notifications regarding any suspicious activity.

 

7. Be aware of changes  

 

When selecting a payroll system, it’s important to realize that it could undergo major changes as your business grows. Depending on how old your existing payroll system is, you may need to replace it completely with a newer model.

 

Even if your current system doesn’t require updating as frequently, you may want to invest in a different system once you reach a certain threshold of employees. As your business grows, you may even have to expand beyond the limitations of your original payroll system.

 

Best payroll system in Singapore   

 

QuickHR is Singapore's #1 payroll system designed to help businesses of all types and sizes to minimize tedious HR processes such as hiring, onboarding, attendance, payroll, benefits, training, and more.

 

• Starting at only $2/employee/month with up to 70% PSG subsidy - affordable for start-ups & SMEs!

• A multi-tier encrypted full-suite HRMS (payroll, claims, leave, attendance, staff scheduling & many more)

• Fully compliant with MOM, CPF & IRAS regulations

• Uncompromising dedicated support team with quick turnaround

QuickHR Payroll Software Singapore - https://quickhr.co/features/payroll

Work Injury Compensation Act (WICA): The HR’s Guide

Work Injury Compensation Act (WICA): The HR’s Guide: ᠎Find out how can you help protect your employees’ well-being when they’re injured on the job with our HR’s Guide to Work Injury Compensation Act (WICA) in Singapore.