HR services, often provided through HR outsourcing, typically include:

• Recruitment and downsizing of employees

• Maintaining personal records

• Creating employment contracts

• OHS services (including organizing training)

• Managing schedules, leave, and dismissals

Comprehensive payroll services should cover:

• Salary calculation and processing

• payslip preparation and distribution

• Leave management

• Medical insurance administration

• Mandatory Provident Fund administration

• Tax returns and filings

• Final payment calculations

• Consultation on HR policies

• payroll services for small business

Small business owners often outsource payroll to save time and gain peace of mind. By partnering with a full-service provider, most of their payroll responsibilities – wage calculations, government compliances, reporting, etc. – are taken care of for them.

By outsourcing payroll, small businesses reduce the risk associated with internal HR turnover and avoid the challenges of maintaining an in-house payroll system.

Since employees are often a company’s most valuable and costly resource, it’s crucial to optimize work schedules. Effective rostering should align with task demands to ensure efficiency.

Considerations for Effective Staff Rostering:

• Does scheduling meet manpower demands at specific times?

• Is shift scheduling flexible to accommodate ad hoc changes?

• Are staff work preferences collected through self-service?

• Are we able to conduct integration with other business systems?

Effective rostering can help companies stay competitive and responsive to changes, benefiting both the organization and employees.

Best Practices Include:

• Reducing administrative burdens

• Lowering payroll costs

• Minimizing unplanned overtime

• Avoiding penalties for regulatory breaches

• Enhancing productivity and employee satisfaction

A robust payroll system can save time and enhance calculation accuracy. To get the most out of your software, ensure your provider offers critical payroll system features. such as:

• Tax filing and regulatory compliance

• Accounting integrations

• Employee portal and mobile app for self-service and manager services

• Direct deposit options (Trustee & Bank)

• Unlimited payroll runs

• Advanced reporting and insights

• Additional HR tools (e.g., budget forecasting, FTE calculations)

• Strong customer support logistic

HRMS, or Human Resource Management System, is a cloud-based solution that centralizes payroll data, making HR operations, such as payroll, time, and attendance, efficient and hassle-free.

Insourcing Payroll:

Definition: Insourcing payroll means that a company manages its payroll functions internally usingits own resources and staff.

1. Control: Companies maintain direct control over payroll processes, data, and systems.

2. Customization: Insourcing allows for tailored payroll processes that fit the specific needs of the company.

3. Internal Knowledge: Employees involved in payroll have a better understanding of the company’s culture, policies, and employee needs.

4. Potential Challenges:

   • Efficiency and Motivation: Employees may experience decreased motivation and efficiency as they spend time on tedious administrative tasks.

   • Human Error: Increased risk of mistakes in payroll due to potential lack of specialization and training.

   • Confidentiality Issues: Higher risk of sensitive salary information being leaked, especially in cases of staff turnover.

Outsourcing Payroll:

Definition: Outsourcing payroll involves hiring an external service provider to manage payroll processes and related tasks.

1. Focus on Core Business: Companies can concentrate on their core competencies and strategic initiatives, allowing for better resource allocation.

2. Professional Expertise: Outsourcing partners often have specialized knowledge and experience, which can lead to more accurate and compliant payroll processing.

3. Technology and Efficiency: Access to advanced technology and systems that may not be cost-effective for an organization to develop in-house.

4. Cost Management: Ability to control staffing costs and invest in IT resources without the burden of maintaining an internal payroll department.

Payroll outsourcing services involve delegating the management and processing of a company's payroll functions to a third-party service provider. This can include a range of tasks, such as:

1. Calculating Employee Wages: Computation of salaries, wages, bonuses, and deductions, ensuring that all calculations are accurate according to employment contracts and relevant laws.

2. Tax Compliance: Managing tax withholdings, calculating applicable taxes, and ensuring timely payment of payroll taxes to government authorities. This also includes filing necessary payroll tax forms.

3. Benefits Administration: Handling employee benefits such as medical insurance, Mandatory Provident Fund contributions, and other perks which may be part of an employee’s total compensation package.

4. Record Keeping: Maintaining accurate records of payroll transactions, employee hours, leaves, and other payroll-related information.

5. Direct Deposits: Facilitating the direct deposit of employee wages into their bank accounts.

6. Reporting: Generating reports on payroll expenses, MPF contributions, and other payroll data for management and compliance purposes.

7. Compliance Management: Ensuring that the company adheres to local employment and tax laws, which helps mitigate the risk of audits or penalties.

8. Employee Self-Service Portals: Providing access for employees to view their payroll information, print pay stubs, and manage personal details.

PROs

• Save your IT investment in HR system

• Save your in-house administration workforce

• reduce human error in miscalculations

• reduce salaries information leaking

• ensure compliance with up-to-date rules and regulations

• access HR experts for HR advise

• use of HR technology provided by outsourcing partner

CONs

• Data Accessibility: You may not have instant access to HR information and data, unless like Lili Outsourcing – HROTG is our own developed system and our clients can grant access to their HR data and information at anytime anywhere with high data protection security measurements.

• Punctuality: Late response and service delivery. Like Lili Outsourcing, our team is committed to response to our clients enquiries and needs with the timeframe set and agreed under SOW by both parties.

• Communication Issues: Miscommunication between the company and the outsourcing provider can lead to errors in payroll processing or misunderstanding of specific needs. Liked Lili Outsourcing, we set up clear SOW and SOP to sign off between both parties and have regular communications with our clients to avoid any unnecessary errors occurred,

• Hidden Costs: While outsourcing can reduce certain costs, there may be unexpected fees for additional services or changes in the contract. Liked Lili Outsourcing, our service fees are clearly stated on the service agreement without any hidden costs to our clients.

• Transition Challenges: Moving from in-house payroll to an outsourced solution can be complex, requiring time and resources to ensure a smooth transition. Lili Outsourcing, we offer our project team to assist our clients to import their employees personal data, payroll and leave history into our HR system .