Why Singapore Businesses Are Switching to Payroll Software That Supports IRAS Submission & E-Invoicing

September 8, 2025
0 comments
Polly Dom
Posted in Business
0

Running a business in Singapore has never been easy, but in today’s fast-paced environment, SMEs and growing companies face even more pressure to stay compliant while running lean operations.

Between keeping up with IRAS reporting requirements, managing payroll accurately, and now preparing for the nationwide adoption of e-invoicing via InvoiceNow, business owners have a lot on their plates. That’s why many are turning to payroll software that does more than just calculate salaries. It now doubles as a compliance and financial backbone.

In short, payroll systems in Singapore are no longer just for HR, they’re also becoming a bridge between operations, finance, and compliance.

The Compliance Burden is Getting Heavier

If you’ve ever had to prepare IRAS submissions manually, you know it’s no walk in the park. The annual IR8A and IR8S forms, plus Appendices 8A and 8B, are prone to human error when done manually.

A single misstep can lead to costly penalties, not to mention time wasted on corrections. Add e-invoicing into the mix, and suddenly, businesses are juggling compliance across both payroll and accounts receivable.

The good news? Cloud-based payroll software like Million is evolving to cover these needs seamlessly. By automating calculations, record-keeping, and submission formats, the software drastically reduces the risk of errors while freeing up HR and finance teams to focus on higher-value tasks.

Why Payroll Software is Becoming a Game-Changer

Forward-thinking SMEs aren’t just looking for “payroll tools” anymore — they want business enablers.

Here’s why payroll software that supports both IRAS submission and e-invoicing is gaining traction:

1. Fewer Manual Errors, More Peace of Mind

Mistakes in payroll don’t just frustrate employees; they also create compliance headaches. Payroll software takes out the guesswork with built-in IRAS compliance features. The system automatically applies CPF contributions, income tax deductions, and ensures everything aligns with statutory requirements. No more cross-checking multiple spreadsheets at the eleventh hour.

2. Direct IRAS Submission

One of the biggest pain points businesses face is preparing and uploading forms to IRAS. Many modern payroll systems integrate directly with the IRAS system, allowing businesses to submit forms electronically with just a few clicks. That means faster processing, fewer errors, and no more last-minute panic in March.

3. Seamless Integration with E-Invoicing (InvoiceNow)

Here’s where things get even more interesting. Payroll software isn’t just about paying employees anymore—it’s increasingly linked to e-invoicing systems. For SMEs, this integration means your payroll, accounting, and invoicing can “talk” to each other. When employees’ work hours or commissions affect invoicing, the system ensures the data flows smoothly across departments.

Imagine issuing an InvoiceNow-compliant invoice that automatically accounts for the labour costs already captured in your payroll software. No duplicate data entry, no inconsistencies—just clean, accurate records ready for both IRAS and your customers.

4. Time Savings for SMEs

For small business owners, every hour saved is an hour that can be reinvested into growth. Payroll software cuts down on repetitive tasks like calculating overtime, CPF contributions, and tax deductions. Add e-invoicing automation, and suddenly, businesses are saving dozens of hours every month that would’ve been spent reconciling numbers.

5. Better Transparency Across the Board

With payroll and e-invoicing in sync, businesses gain better visibility into cash flow. Owners can see not just what they’re paying employees but also how those costs align with invoices going out and payments coming in. This kind of financial clarity is crucial for decision-making, especially in competitive industries like retail, F&B, and professional services.

Why Businesses in Singapore Are Making the Switch Now

Singapore’s business landscape is moving toward full digitalisation. From government grants that incentivise SMEs to adopt InvoiceNow, to IRAS pushing for seamless tax submissions, the message is clear: going digital isn’t optional anymore—it’s the standard.

Forward-looking businesses are making the switch early to avoid last-minute rushes and disruptions. By adopting payroll software that already supports IRAS submissions and e-invoicing, they’re setting themselves up for long-term efficiency, compliance, and scalability.

Key Misconceptions About Payroll Software (and Why They’re Outdated)

“It’s only for big companies.”
Not true. Many solutions are designed specifically for SMEs with simple, scalable pricing models.
“It’s too complicated to set up.”
In reality, most modern payroll systems are cloud-based, intuitive, and come with onboarding support.
“We can manage just fine with Excel.”
That might work short term, but with IRAS and e-invoicing requirements tightening, spreadsheets quickly become error-prone liabilities.
“It’s too expensive.”
Factor in the cost of errors, penalties, and wasted time, and you’ll find payroll software often pays for itself many times over.

The Bottom Line

Businesses in Singapore can no longer treat payroll software as a “nice-to-have.” With compliance obligations from both IRAS and e-invoicing becoming stricter, software that integrates payroll, accounting, and invoicing is quickly becoming the norm.

The shift isn’t just about ticking boxes for compliance, but also about building a smarter, more efficient business. Payroll software that supports IRAS submission and e-invoicing doesn’t just reduce errors; it helps businesses save time, improve cash flow visibility, and future-proof operations.

For SMEs in retail, F&B, or services, making the switch sooner rather than later means less stress, smoother compliance, and more time to focus on what really matters: growth.