Payroll Software – Tax Compliance

Payroll impacts taxation submission. Therefore, a good payroll software needs to enable companies to comply with tax filing requirements with ease. Here at Opensoft, our payroll software is customised for Singapore companies, and the software is updated every year according to IRAS’ recommended payroll software controls standards. By using our payroll software, companies are assured of full compliance with tax filing requirements.

Our payroll software is designed for flexibility of data entry, while at the same time define the boundaries for the data entry so that IRAS compliance is ensured.

Treatment of non-taxable payroll items

In our payroll software, remuneration components are not automatically tagged as non-taxable items. This is because tax exemption rules can change and having fixated non-taxable items in the software can cause errors in generated tax forms if the company fails to upgrade their payroll software to the latest edition.

Thus, companies using Opensoft payroll software are not locked in for unnecessary updates. However, many of our clients still choose to upgrade their payroll software because each new version of our payroll software brings loads of enhancements, such as quicker data entry, improved user interface, stronger security and data protection technologies.

Tax reporting of CPF contributions

The Opensoft payroll software is also capable of automating the tax reporting of CPF contributions such as:

a) Compute excess employer CPF contributions and auto-populate to item d7 of Form IR8A;

b) Exclude any excess/voluntary employee CPF contributions from the Employee’s Compulsory Contribution to CPF in Form IR8A; and

c) Auto-complete Sections A and B of the Form IR8S due to the excess employer’s and employee’s CPF contributions.

This is a big time saver for employees, and sets the company ready for auto submission anytime.

Compute CPF contributions

Another big advantage of using our Singapore-edition payroll software is that the software is specifically customised to process CPF contributions. Compulsory CPF contributions are automatically computed based on prevailing CPF rates, age group and residence status.

Rules for CPF contributions can be quite complicated for manual calculations. Companies with workforce of twenty or more employees should ideally stop manual payroll processing and migrate to a good payroll software to process CPF contributions. The Opensoft Payroll Singapore edition for example is a mature payroll software that many Singapore companies rely on today, thanks to the countless number of updates over the years.