Businesses in Singapore are ought to put their payrolls on automation with the help of advanced payroll softwares. Softwares are smart and are designed as per the MoM & IRAS guidelines ensuring compliance. But we have reports of several instances where companies hurriedly selects payroll software and later finds it to be inefficient.
The common confusion lies in understanding AIS and API capability. The payroll softwares which are equipped with both AIS and API can generate reports and users can directly submit the reports to IRAS directly within the software, but some are only AIS equipped, which implies they can only generate reports but cannot submit.
Companies compare prices but not features and capabilities and miss the crucial areas and land in trouble later, then are forced to spend double to meet the deadlines. I have discussed below some of the common reported mistakes, from which you can learn and act accordingly;
Also Read: Payslip Singapore 2025: MoM Compliance, Key Components, and Legal Requirements
Common Mistakes Reported
1. Ignoring What Business Demands
Many businesses never analyze and understand the mode of operations and hence can never know what their business payroll demands. You can simply start with basics like the number of employees, pay frequency, types of compensation, and compliance assurances required.
2. Verifying Accuracy and Compliance
Many payroll softwares traps the businesses with low prices and useless features and businesses tend to choose softwares for simple operations over accuracy and compliance. Aligning with regulations from concerned labor laws and statutory bodies is must and shall never be overlooked. You must check and verify features like automated calculations, built-in compliance checks, and know the reporting capabilities.
3. Neglecting Data Security
It’s another often reported problem, where businesses share IP or employee data with softwares without ensuring, if the software provider has robust security measures in place. You must as the foremost step, check encryption, access controls, regular backups and user support.
4. Overlooking Integration Capabilities
If it’s not synching with your existing set of operations and system, it’s a complete waste. You must settle for a software that seamlessly integrates with the business’s existing systems to help streamlining processes and reduce any need for human intervention which are prone to data inaccuracies.
5. Choosing Software Without a Free Trial or Demo
Never sign the cheque before the test drive. Make sure that you leverage free trials or demos to evaluate and understand software’s features, UI & UX, and performance insights.
6. Not Considering Scalability
Putting operations on automation simply means that a business is growing and to aptly take the operations forward they are distributing load on machines and softwares, but if the same is inefficient, it’s worthless the idea. Make sure you select software which helps you in scalability, whether your workforce is growing, implying increased complexity of the payrolls.
7. Neglecting Ongoing Support and Updates
Staying updated with guidelines from statutory labour law bodies like IRAS and MoM is a must, some software are not updated and are sold at cheap prices and if you select any such, you could land in trouble. Select a software which is updated and is also viable enough to cater-in any future updates and operate accordingly.
8. Not Prioritizing User-Friendliness
Features, compliance and integrations are must, but if the software operates in a clumsy manner, admins could encounter confusions causing inaccuracies. Verifying the workability and UI is a must and shall never be overlooked for easy and smooth operations.
Features To Look For While Selecting Payroll Software
You have multiple options for Payroll softwares in 2025 but to choose one for your needs, you have count-in some crucial features and then decide, understand below;
Also Read: Step-by-Step Guide to Completing IR8A Submission 2025
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Customer Support
Any such automation like Payroll is always attached with various aspects and no organisation can afford to address every of them. While your employees scroll through to know their leave balance, company policies, attendance and downloading payslips, there must be someone from the service provider itself to guide on any complexities and assist with solutions upfront for simple and seamless operations.
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Compliance Support
One of the crucial factors to be taken care of diligently and you must make sure that the payroll system you are paying for is helping your businesses be in compliance to the statutory rules with the local payroll. Timely and updation and implementation of the latest legal regulations related to tax laws and payroll regulations, notifying admin filing important payroll reports, and maintaining reports for the same.
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High Security Standards
Checking and verifying the security standards and levels of a payroll software can’t be ignored.
Whether you are selecting a payroll software accessed and used via the cloud or run on-premises, payroll security is a must to safeguard your IP.
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Access To Data And Features
Putting payroll on complete automation is conceived with a simple idea to organize employees and payrolls efficiently. The Payroll software which you select if is not easy to maneuver and UI is complexed then the whole agenda to adopt it could fail. An ideal payroll software must be well featured with an intuitively-structured dashboard offering multiple functions for viewing, analyzing and extracting a range of data quickly and easily.
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Integrations
Payroll software integrations with your organisation’s features and softwares will truly make it an automation software. Automating of the payroll steps starting from calculating employee wages, issuing bulk payments will only take off the lad from the manual team. The payroll software must be highly adaptive to local workforce management tools, like time and attendance management to ensure that the human effort is only limited to tap open the software only.
Top Cloud Payroll Softwares in 2025
For you to shortlist from, IO have below mentioned some of the top trending and most preferred payroll softwares in 2025
PeopleCentral
4.5/5
Features: Automated payroll, Tax filing support, Attendance & Time Records, customizable plans for different team sizes/needs
Paychex
4 / 5
Features: Automated payroll, Tax filing support
Justworks
3.5 / 5
Features: Automated payroll, Tax filing support
OnPay
3 / 5
Features: Tax filing support
Patriot
3.5 / 5
Features: Automated payroll, Tax filing support
Conclusion
Check with the service provider on what level of customer support they provide. It becomes even more crucial at the times of IRAS form submissions, in case the admin is stuck with any confusion, there are chances of a deadline to be missed, but with great support the same can be eradicated. Check your business needs, involve HR manager, Admins and account heads to gain insights on what features and programs you need in the payroll software and then proceed.
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