Small Biz Payroll Fumbles On Singapore Legislation

Small businesses are struggling to get their payroll systems aligned with Singapore’s new Employment Act, legislation that aims to ensure employees know how they’re getting paid and how their salary is calculated.

But the United Overseas Bank Limited (UOB) is looking to ease the struggle for Singaporean small businesses that will need to comply with the new rules by April 1 of next year.

Reports in The Straits Times on Tuesday (Dec. 1) said the UOB has launched a new payroll service for small businesses that automates payslip itemization and issuing, as well as helps business owners inform their employees of their employment and salary terms, as required by the latest changes to the Employment Act.

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UOB’s tool will also help small businesses maintain employment records, reports said.

The Ministry of Manpower will enforce amendments made to the Employment Act as policymakers look to improve employees’ knowledge of their financial status, including benefits and employment terms.

Not only will UOB’s payroll service help small businesses maintain regulatory compliance, the bank said that it can also help its Business Banking customers save 40 percent in payroll management costs by offering payroll software in conjunction with its small business accounting services.

In a statement, UOB Business Banking Singapore Head and Executive Director Mervyn Koh said the service is “cost-effective” and acts as a way to “take the hassle out of issuing itemized payslips manually and reduce both error rates and manpower costs.”