HR teams in Singapore are no longer handling only hiring and performance reviews. They are also under increasing pressure to manage tax reporting under the IRAS Auto-Inclusion Scheme (AIS). What used to be a once-a-year task has evolved into a year-round responsibility that requires accurate payroll records, CPF tracking, and seamless employee data management.
As IRAS continues to digitise tax processes and tighten compliance enforcement, many businesses find that the traditional spreadsheets and manual systems they have used for many years simply can’t keep up. That’s why successful companies are migrating to HRMS in Singapore (human resource management system — a software suite for coordinating and executing key HR functions, from recruitment to payroll). By centralising payroll and automating statutory filings, these comprehensive solutions keep your HR operations aligned with AIS requirements.
Understanding HRMS in Singapore and IRAS
In Singapore, tax compliance falls heavily on HR — and your HRMS directly affects how well you meet IRAS requirements. If you’re still managing your payroll manually or if your employee data and pay records are spread across disconnected and outdated tools, you are effectively increasing your risk of reporting errors, late submissions, and non-compliance. Here’s how poor payroll processes can put your business at risk:
| Compliance area | What can go wrong | Regulatory consequences | How HRMS in Singapore can help |
| Taxable and non-taxable income | Misclassifying allowances, benefits-in-kind, or compensation components | Leads to inaccurate tax reporting, which may trigger audits or penalties from IRAS | Standardises pay element categorisation and applies consistent tax treatment across employee records |
| CPF contributions | Errors in calculating Mandatory or Voluntary CPF contributions | Affects taxable income declarations and may result in discrepancies between CPF and IRAS filings | Automates CPF calculations based on employee age, citizenship, and wage components using the latest statutory rules |
| Tax clearance (Form IR21) | Incomplete or outdated payroll data submitted in the IR21 form | Can delay the final payout for foreign employees and breach IRAS tax clearance requirements | Pulls real-time data into IR21 forms to ensure accurate final tax computations before employment termination |
In short, an effective IRAS-compliant HRMS in Singapore is a risk mitigation strategy. It supports tax reporting by:
- Generating employee income data in the correct formats for submission
- Maintaining a clear audit trail for allowances, bonuses, and benefits-in-kind
- Ensuring that all benefits are properly classified and reported
This level of integration ultimately simplifies your year-end reporting while also helping your HR team stay compliant throughout the year.
⚠ Quick recap
Who needs to comply with AIS?
- Mandatory for: Employers with 5+ employees or those who’ve received a Notice to File from IRAS
- What you must report: Salaries, bonuses, commissions, directors’ fees, and benefits-in-kind
Under the AIS, employers must submit employee income information electronically through IRAS’ myTax Portal. To do this, you’ll need to generate IR8A forms (and Appendix 8A/8B or IR8S if applicable), validate them using IRAS’ validation tool, and upload them by the March 1st deadline.
An IRAS-compliant HRMS in Singapore can simplify all of the above, turning your payroll data into AIS-ready formats without you having to manually map income components or calculate statutory deductions.
HRMS vs. manual workflow
Manual processes may get the job done, but at what cost? Let’s compare.
| Process | Manual workflow | With HRMS in Singapore |
| Data collection | Multiple spreadsheets and manual updates | Centralised, real-time data tracking |
| CPF and benefits tracking | Prone to errors, must be updated manually | Auto-updated with current rules |
| IR8A / IR21 preparation | Manual compilation and formatting | Auto-generated and IRAS-compliant |
| Submission validation | Requires external IRAS validation tools | Built-in format checks and field requirements |
| Audit trail | Scattered or incomplete | Automatically recorded and accessible |
Try Adaptive Pay’s HRMS in Singapore
Do you need help integrating payroll, HR, and submission workflows so you stay IRAS and AIS-compliant? Schedule a demo today with Adaptive Pay. Call them at +65-6708-9398.
