Payroll is the one service clients notice immediately when it goes wrong. Salaries must be right and on time, and statutory payments must be made by their due dates, every single month.
For a firm running payroll for many clients, the answer is a fixed monthly cycle that everyone follows.
Due dates and thresholds change. Check the current rules for each client's location and situation.
The monthly cycle
Cut-off for inputs. A fixed day by which each client sends attendance, leave, new joiners, leavers, salary changes and one-off payments. After the cut-off, changes go to next month.
Process and check. Run payroll and compare it with last month. Investigate anything unusual: a large change in net pay, a missing employee, a new allowance.
Client approval. Share a payroll summary and get written approval before any money moves.
Pay salaries. Prepare the bank file and payslips.
Statutory payments.
- India: TDS on salaries by the 7th of the following month; PF and ESI by the 15th; professional tax as each state requires.
- Singapore: CPF contributions (and the Skills Development Levy) by the 14th of the following month.
Close the month. Save the approvals, payment proofs and returns with the month's records.
Year-end work
- India: Form 16 for employees, quarterly TDS returns (24Q), and collecting investment declarations and proofs for tax computation.
- Singapore: IR8A and related forms through the Auto-Inclusion Scheme by 1 March.
Common pitfalls
- Late inputs from clients, followed by "small" changes after approval.
- Joiners and leavers handled outside the cycle, causing missed full-and-final settlements.
- Statutory registrations for new employees (UAN, ESI number) not done on time.
- No record of approval, so disputes become your word against the client's.
Pricing
Payroll is usually priced per employee per month. Watch for clients whose inputs always arrive late or change after approval: they take more time, and it's fair to say so.
How MSMEPulse helps
MSMEPulse includes monthly payroll templates for India (with TDS, PF, ESI and professional tax) and Singapore (with CPF and SDL), with each step as a task and the client's inputs and approval on a document checklist. For your own team, MSMEPulse payroll runs the calculation, payslips and statutory reports for both countries.
