Top Payroll Features of an Employer of Record Platform in Singapore

Managing payroll in Singapore, a global financial hub with strict regulatory frameworks, can be a complex and time-consuming process. Companies looking to expand their operations in Singapore face various challenges, including navigating employment laws, complying with tax regulations, and ensuring accurate payroll processing. As a result, many businesses turn to an Employer of Record (EOR) platform to simplify their payroll processes and ensure compliance.

An EOR platform offers comprehensive payroll solutions, allowing companies to manage their workforce without establishing a legal entity in Singapore. This service is essential for businesses that want to expand quickly while ensuring they adhere to local employment laws and payroll regulations.

In this article, we will explore the top payroll features of an EOR platform in Singapore and how they can benefit businesses, particularly those with international or rapidly scaling operations.

Learn how to hire employees and contractors through an employer of record (EOR) Singapore.

Seamless Payroll Processing

One of the primary features of an EOR platform is the ability to handle payroll processing seamlessly. Payroll involves much more than just paying employees; it requires managing wages, deductions, taxes, benefits, and bonuses accurately. In Singapore, the payroll cycle must adhere to strict legal requirements, such as paying salaries at least once a month and issuing payslips with detailed breakdowns of earnings and deductions.

An EOR platform automates these processes, ensuring that employees are paid on time and that all necessary deductions, such as Central Provident Fund (CPF) contributions and taxes, are calculated correctly. This reduces the burden on HR teams and minimizes the risk of human error, which can lead to legal penalties or employee dissatisfaction.

Compliance with Singapore Employment Laws

Singapore has a well-defined set of employment laws that companies must comply with, including the Employment Act and various tax and contribution requirements. These regulations cover areas such as working hours, overtime pay, sick leave, and statutory contributions like CPF.

An EOR platform ensures compliance with these laws by automating the following key processes:

• CPF Contributions: Singapore’s CPF is a mandatory social security savings scheme that both employers and employees contribute to. The EOR platform calculates and deducts the appropriate CPF amounts for Singaporean citizens and permanent residents.
• Itemized Payslips: The Ministry of Manpower (MOM) requires employers to issue detailed payslips to employees, showing basic salary, allowances, overtime pay, and deductions. EOR platforms generate these payslips automatically, ensuring compliance with MOM regulations.
• Employment Contracts: The platform can manage both contracts of service (employer-employee agreements) and contracts for service (independent contractor agreements), ensuring the correct classification of workers and compliance with the Employment Act.

By ensuring strict compliance with Singapore’s employment laws, EOR platforms help businesses avoid costly fines and legal issues.

Tax and Social Security Management

One of the most significant payroll challenges for businesses operating in Singapore is managing taxes and social security contributions. Companies are required to deduct and report income tax, manage CPF contributions, and handle levies such as the Foreign Worker Levy.

An EOR platform simplifies these processes by automating tax calculations and ensuring that all statutory payments are made accurately and on time. Key features include:

• Direct Submission to IRAS: The platform can directly submit required tax forms, such as IR8A and IR21, to the Inland Revenue Authority of Singapore (IRAS), saving time and reducing the risk of errors.
• Foreign Worker Levy Calculation: For companies employing foreign workers, the EOR platform calculates the applicable levy and ensures timely payment to the authorities.

By automating tax and social security processes, an EOR platform helps businesses stay compliant with local regulations and eliminates the need for manual calculations.

Leave and Attendance Management Integration

Another crucial feature of a payroll platform is the integration of leave and attendance management. In Singapore, employees are entitled to various types of leave, including annual leave, sick leave, maternity leave, and childcare leave. Managing these entitlements manually can be cumbersome, especially for larger companies.
An EOR platform integrates leave and attendance data with payroll processing, ensuring that any leave taken is accurately reflected in the employee’s pay. For instance:

• Pro-rated Leave: The platform calculates leave entitlements based on an employee’s start date and adjusts pay accordingly.
• Sick Leave Deductions: In Singapore, employees are entitled to 14 days of paid sick leave and 60 days of hospitalisation leave per year, provided they have been with the company for at least six months. The platform ensures that these entitlements are accounted for in payroll calculations.

By integrating leave management with payroll, EOR platforms help businesses maintain accurate records, streamline workflows, and ensure compliance with leave entitlements.

Customizable Reporting and Analytics

One of the most valuable features of an EOR platform is its ability to generate customizable payroll reports. Businesses need access to comprehensive data on payroll expenses, tax contributions, and employee compensation to make informed financial decisions and maintain compliance.

The platform offers a variety of reports, including:

• Monthly Payroll Summaries: A detailed breakdown of employee wages, deductions, and contributions for each payroll cycle.
• Year-End Reports: Summarizes annual payroll data for tax reporting and financial planning.
• Headcount and Turnover Reports: Provides insights into workforce management and helps identify trends in employee turnover.

These reports can be customized based on department, employee category, or other criteria, and can be exported to various formats (e.g., Excel or PDF) for easy analysis. By offering detailed analytics, EOR platforms empower businesses to optimize their payroll processes and make data-driven decisions.

Mobile Access for Employees

In today’s digital age, having access to payroll information on the go is increasingly important for both employers and employees. EOR platforms often offer mobile apps that allow employees to access their payslips, update personal information, and track leave balances directly from their smartphones.

This enhances transparency and gives employees greater control over their personal data. It also reduces the administrative burden on HR teams, as employees can manage their own profiles and leave requests without needing to go through multiple approval layers.
Learn how to run payroll in Singapore.

Why Mercans is the Ideal Partner for Payroll Management in Singapore

As businesses expand into Singapore, the need for a reliable, comprehensive, and compliant payroll solution becomes crucial. This is where Mercans, a leading global Employer of Record provider, stands out. Mercans offers a robust payroll platform tailored to the specific needs of companies operating in Singapore, ensuring smooth and compliant payroll operations.

With its deep understanding of Singapore’s employment laws and tax regulations, Mercans can help businesses manage their payroll efficiently while staying compliant with local requirements. Mercans’ platform integrates payroll with HR functions, automates compliance, and provides access to advanced reporting tools, allowing businesses to focus on growth rather than administrative tasks.

Choosing Mercans means partnering with a trusted provider that has the expertise and technology to support your payroll needs in Singapore and beyond.