My background: I formed a company with another American in 2004. He was PR, for the first two years I was EP, then PR. When we started, we paid only the two of us. In our heyday, we paid about 16 people, some as employees, some as contractors. We never used an accountant and we never used any kind of payroll software. Such software is absolute overkill unless you are offering a smorgasbord of employee deduction opportunities... medical insurance, retirement plans, stock options, etc.cattleherder wrote:I've set up a business a couple of months ago, three guys in total, currently two are on the payroll. First money came in, and so we can pay ourselves finally.
None of us is a PR or a citizen of Singapore, so no CPF contributions. So it should be very simple, paying ourselves. No special allowances, nothing, just the salary, according to the MOM requirements.
I had a conversation with an accounting company we work with, who initially quoted a very sensible S$50 per person + S$100 for the CPF account activation. Upon learning that we don't need the CPF, the lady started asking what else we need, and I am awaiting a quote. "Oh, so you missed the payroll date, so we need to make modifications." While these guys know what they're doing, and they helped us greatly with the employment passes and the initial setup, their modus operandi seems to be similar to that of inkjet printers: entry fees are cheap, then they charge you premium. I'm expecting them to ask for a few hundreds, which, honestly, makes no sense. Additionally, they use their own software so they will not update my Xero account (not a big deal but still a bummer).
I am looking at a past topic about payroll software and I did some reseach about alternatives.
1. Does the payroll compliance warrant paying an accountant?
2. What kind of contributions are there?
3. Is it a big issue if we missed the payment date? It's only for one month. Our job offers to ourselves (taken from templates) say that the pay day is "no later than 7 days". We obviously won't sue ourselves but I am wondering if it's an issue.
4. Any feedback on Sage Payroll (price not published), QuickHR (only S$5 a month!), SimplePay Xero plug-in (S$14 per employee per month), Talenox (S$40 per month under 5 employees)?
I forgot about the SDL... but it's calculated pretty much the same as CPF with a minimum, a percentage, and a cap. Since we had two PR's, we paid everything (as I recall) through CPF. Even if not, we setup electronic pay accounts for government payments (we also paid GST), and once payroll was determined, a per employee calculation was made for CPF and SDL... I think that Sage could be programmed to compute deductions like that.cattleherder wrote:Got a quote, and questioned it.
The accounting company claims that every company is now obliged to pay so-called Skill Development Levy. I googled it and apparently it's very easy to calculate: https://www.cpf.gov.sg/employers/employ ... ment-levy-(sdl%29.
She also claims that every month, the wages are to be reported to the MOM or something like that. Is she bullshitting me?
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