Payroll Service is an essential aspect of Professional Employer Organisation (PEO) and Employer of Record (EOR) service.
The diagram below shows the various relationships and scope of responsibilities between the client, contract employee and PEO service provider. PEO service provider acts as co-employer and Employer of Record (EOR) for employment management, personal tax, employee management, payroll and statutory contributions purposes. This service is also known as contract staff outsourcing as the client technically outsource the employment of their staff to a service provider.
In Singapore, the our typical cope of work for Contract Staff Outsourcing and Employer of Record (EOR) service includes :
- Employment Contract Crafting and Management;
- Payroll Processing;
- Central Provident Fund (CPF) Pension Submission;
- IR8A /IR21 Personal Tax Submission & Clearance;
- National Service (NS) Claim Submissions;
- Paternity/Maternity/Childcare Leaves Submission Including Claims for Government Grants.
- Expense and Medical Claims Processing
- Provision of Monthly & Annual Payroll Reports to Management
In addition to the above, we also add value and support our clients with capabilities in HR Advisory Consultancy and Support Service in the following areas:
- HR advisory services on Singapore’s employment laws, local HR practices, compensation and benefits management;
- Advisory on local and foreign manpower hiring strategies and foreign staff quota including application, renewal and termination of employment and work passes application process;
- Update/Prepare Employee Handbook for Singapore office;
- Employment contracts management for onboarding new hires, disciplinary and termination management for departing or offboarding employees;
- Local employment compliance matters on fair employment practices, government job portal advertisements requirements, retrenchment, disciplinary, fair termination practices;
- Recruitment and Hiring strategies including writing of appropriate job description for job advertisements for new recruits;
- Manage training and development needs of outsourced contract employees.
FAQ
A professional employer organization (PEO) is a legally registered company in Singapore that can provide Employer of Record (EOR) service employer via a joint employer relationship with another employer/company/client which may not necessarily be based in Singapore. The client of the professional employer organization (PEO) service company typically hires the employee and outsources the human resource management functions to the professional employer organization (PEO) iCompany including employment engagement contract according to Singapore’s employment practices. The professional employer organization (PEO) company shall be responsible in managing the employment engagement in accordance with Singapore’s Ministry of Manpower practices, rules and regulations throughout the duration of the agreed contract period.
As the words suggest, Employer of Record (EOR) refers to the legal employer on the record, in the case of Singapore, a company legally registered in Singapore for the purpose of employment engagement, complying with local employment regulations, contribution to pension funds namely the Singapore’s Central Provident Fund (CPF), insurance policies, benefit management and Singapore work pass and visa matters if the hired employees requires work authorisation.
professional employer organization (PEO) refers to the services provided by a professional HR services firm for its clients while Employer of Record (EOR) refers to the actions and scope of work provided which include processing and paying wages, contributions to pension funds (such as Singapore’s Central Provident Fund) , and other statutory and Singapore’s employment law compliances for the jointly hired employee.
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- Quick start to hiring employees in Singapore without the need or hassle of having to set up a company in Singapore.
- Short term project work or business exploration work with no plans to continue with business presence once project has ended.
- Local companies that have no management mandate to increase headcount despite operational manpower requirements due to sudden increase in workload or projects.
- Due to COVID-19 pandemic and travel restrictions, there is a greater need to localise the engagement of local staff.