1. Register Your Startup as an Employer
Before any salary goes out, your startup needs to be registered to handle CPF and tax submissions.- Apply for a CSN through the CPF Board. This is required to calculate and submit Central Provident Fund (CPF) contributions.
- Set up a CorpPass account to authorise access to CPF and Inland Revenue Authority of Singapore (IRAS) e-services.
- Complete both before your first hire’s start date, not after.
2. Set Pay Schedules and Statutory Deductions
Decide how often you pay and what gets deducted before you process a single payslip.- Choose monthly or bi-monthly pay cycles. Founders weighing bi-monthly payroll cutoffs should lock the schedule before onboarding starts.
- Issue itemised payslips under the Employment Act, showing gross pay, deductions, net pay, and allowances.
- Factor in the Skills Development Levy (SDL) at 0.25% of gross wages, capped at SGD 11.25, and CPF contributions of up to 17% employer and 20% employee for staff under 55.
- Budget for Foreign Worker Levy (FWL) if hiring non-local employees.
3. Build Your Payroll Structure and Reporting Setup
Your payroll structure needs to match what IRAS expects to see at filing time.- Map out gross pay, allowances, deductions, and net pay as a fixed template, not a one-off calculation each cycle.
- Confirm IR8A and Auto-Inclusion Scheme (AIS) e-filing requirements with IRAS before your first reporting deadline.
- Get your payroll reporting structure right early. Retrofitting reports after a compliance gap is harder than building them correctly from day one.
4. Choose How Payroll Gets Processed
This is where most startups default to software without weighing the alternative.- Manual spreadsheets work for a handful of employees, but error risk climbs fast past that.
- Automated systems reduce calculation errors, and HR automation extends that accuracy across onboarding, leave, and benefits, not just pay runs.
- For lean teams without dedicated payroll staff, managed payroll execution shifts CPF accuracy, SDL calculation, and IRAS filing to a team that already handles it daily.
5. Collect Employee Data and Run Your First Payroll Cycle
Before disbursement, every employee record needs to be complete.- Collect NRIC or FIN numbers, tax residency status, and bank details for GIRO transfers.
- Input timesheets, bonuses, and base salary into your payroll system or process.
- Generate GIRO files and confirm disbursement timing with your bank before the pay date, not on it.
6. Plan for Foreign Hires and Cross-Border Pay Early
If your team includes foreign talent, work pass categories shape payroll from day one.- Employment Pass candidates generally need to meet the current MOM qualifying salary, starting at SGD 5,600 for most sectors and SGD 6,200 for financial services before the 2027 increase
- S Pass candidates generally need at least SGD 3,300 for new applications from 1 September 2025, with financial services at SGD 3,800.
- Work Permits cover semi-skilled roles, typically in construction or manufacturing.
Who Owns Each Step (and What Runs Once vs. Every Month)
Setting up a payroll system isn’t one task with one owner. Some steps happen once; others repeat every cycle and need a clear owner from day one.| Step | Frequency | Typical Owner |
| 1. Register CSN and CorpPass | One-time, before first hire | Founder or finance lead |
| 2. Set pay schedules and deductions | One-time setup, reviewed annually | Finance lead |
| 3. Build payroll structure and reporting | One-time setup, reviewed at each IRAS filing cycle | Finance lead + payroll processor |
| 4. Choose how payroll gets processed | One-time decision, revisited as headcount grows | Founder or operations lead |
| 5. Collect employee data and run payroll | Every pay cycle | Payroll processor (in-house or outsourced) |
| 6. Manage foreign hires and work passes | Per hire, ongoing | HR or operations lead |
