The February 2022 Blue Marble newsletter is focused on frequent problems with global payroll reporting, employee benefits in Singapore and managing multiple payroll vendors and systems.
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Frequent Problems with Global Payroll Reporting
As a company expands into new countries, there can be a rush to get employees hired and start payroll. Often it seems easier to find a local vendor to manage the in-country payroll, since they know the requirements and deadlines for the specific country. But as the company grows and adds new countries, this piecemeal approach to payroll becomes a large problem for the organization. Over time, using multiple vendors and data sources across several countries creates a gap in data, no standardized processes, and lack of reporting.
This is a frequent problem that multi-national companies face – they have a process that is so segmented that when they need reporting or want to get a handle on costs, it can take months to get the real picture. Lack of reporting is one of the main reasons companies decide to consolidate payroll processes or switch vendors. The idea of switching systems and vendors can seem daunting, but if you don’t have access to real-time payroll data, your company could be losing thousands to errors, compliance fines, or even fraud.
So, what should you look for when searching for a new global payroll solution? To start, you need all your countries on one platform – using multiple systems is the root of the data issues and only causes more pain in the process. Consolidating global payroll allows you to view all countries in one place, view costs in real-time, and identify errors before the payroll run takes place. With one platform you also have real-time reporting capabilities across all countries and currencies – that sounds like a dream!
Now factor in your US payroll – what system are you currently using, and can you integrate with your global payroll solution? That is the gold standard of multi-national payroll – one system of record for employees in every country. Accurate, monthly global payroll reporting is the key to managing costs across the organization and ensuring compliance in each country. Having access to customized reporting for your organization is a game-changer – no more wondering what is happening in each country – you have it right in your payroll solution.
Blue Marble has changed the way companies manage global payroll with a cloud-based platform to manage employees across 150+ countries. Our customized reporting tool lets you create the reports you need for your organization in real-time – no more waiting for each vendor to provide the data you need each month. If you are struggling with reporting (or lack of reporting) we can help. Talk to our team to get started and simplify global payroll reporting in 2022.
Employee Benefits in Singapore
Global People Strategist
Singapore has an Employment Act that provides terms and working conditions for all types of employees. The Employment Act covers any person who has entered into a contract of service with an employer and regulates the relationships between employers and employees.
The funds for medical benefits come from the employee salary. Businesses are required to make contributions to the social security savings scheme, the Central Provident Fund (CPF), of 17% of the employee salary. There is also a national medical savings scheme that employees must contribute to, and employers are also required to provide entitlements and healthcare benefits to their employees.
Here are some of the medical benefits employees are entitled to in Singapore:
- Sick Leave and Hospitalization Leave
The Employment Act of Singapore states that employees who have worked for at least 3 months are required to get paid sick and hospitalization on an annual basis. The hospitalization leave is to be verified by a medical practitioner. Singapore employees get up to 2 weeks paid sick leave each year if hospitalization isn’t necessary. If hospitalization is needed, employees get 60 days paid leave each year, including sick leaves. - Stay-Home Leave
The Employment Act states that an employee is allowed to rest at home and be counted as being hospitalized. However, the stay-home leave has to be certified by an approved public medical institute. - Fees Reimbursement for Medical Consultation
For any employee that has worked for at least 3 months, employers have to reimburse the medical consultation fees. Government or company-verified doctors, dentists, and specialists qualify. Employers do not have a legal obligation to pay for medical consultation or sick leaves if the employee visits the doctor on public holidays, rest days, annual leave, or non-working days. If the employee doesn’t submit a medical certificate after taking sick leaves or medical consultation, then the employer is not obligated to reimburse the amount. - Paid Time-Off for Medical Appointments
The Ministry of Manpower states that employers are encouraged to be flexible in providing paid time off if an employee has to visit the doctor for important medical appointments. The employee should inform their supervisor in advance to accommodate the work schedule. - Work Injury Compensation Act (WICA)
Contract-based employees and foreign workers are covered under the WICA. If an employee suffers an injury or gets infected with a disease as a result of the job, then the employer is liable to face all monetary damage. The act protects employees even if they stop working for you, if the work is canceled, and if an accident happens during an official foreign visit. The employer is entitled to provide medical leave wages, cover the medical expenses, and also offer compensation for permanent incapacity or even death.
To learn more about statutory benefits in Singapore, visit Global People Strategist
Managing Multiple Payroll Vendors and Systems
Skye Graham, Sales Executive
One of my new clients was facing tough challenges managing employees across multiple entities in Canada and in the US. There were different payroll systems and processes across each country and entity, and some payroll was done in-house as well. With multiple vendors, different systems, and no standardized process across the organization, payroll was a logistical nightmare.
This is a common scenario for companies that acquire new companies in different locations, so we wanted to identify the main concerns and solve the biggest challenges for their team. They had to work with unions, flexible shifts, and different employment types, so their payroll was more complicated to begin with – not to mention the multiple entities and systems and processes. They had no reporting or consolidation across the organization, so lack of data was also a concern. Using multiple vendors caused communication delays and issues, as well as different payroll processes for each team.
We started with consolidating all of the US and Canadian payroll into one aggregated system using our Paylocity and Blue Marble technology. With a single sign on across both countries and multiple entities in Canada, the data is accessible in real-time. Reporting is now aggregated across both countries, so they can run custom reports when needed and see payroll costs across entities and countries as well. The cloud-based platform also provides a standardized process for running payroll, and any regulation changes are automatically updated within the platform.
They have transformed their payroll from a complicated, multiple system, disparate process to an aggregated and simplified payroll across multiple entities and countries. Their team can easily manage payroll without communication issues or lack of data and ensure compliance across the organization. If this scenario sounds familiar to you and your team, talk to us – we have the global platform and technology to streamline your processes and take the headaches out of your US and global payroll. Click here to learn more
Author: Blue Marble
