The Ministry of Manpower (MOM) of Singapore has formed a new rule regarding the issue of payslips to the employees of SMEs based in Singapore. The government has made it mandatory to generate Singapore payslips for all employees working in an organization namely payroll software Singapore.
Payroll software Singapore makes sure all the employee data including the salary details are well-maintained and can be accessed by the authorized people anytime. This further gives a clear report to the government regarding the number of employees in an organization, their salary details, and more importantly the amount the organization has to remit to the government as their contribution to the Provident Fund (CPF).
According to the Ministry of Manpower’s new rule, the Payroll software in Singapore must generate ePay slips for all employees. The organizations using an efficient Payroll system will already have the data required in their software. At the most, it requires some additional data that we can do using a small update to the system. For organizations not using a Payroll system, this is going to be major work.
A competent ERP with the integration of Accounting, Payroll, HRMS, and other business processes like the POS for retail and wholesale, travel system for travel businesses, or the operations for the construction or manufacturing businesses will have to be installed in such organizations. Since compliance is mandatory, all SMEs have to get the system up and running and issue itemized pay slips to all the employees of their organization from 1st April 2016 onwards.
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Key Employment Terms for Payroll Software Singapore
The Ministry of Manpower gives mandatory to provide the Key Employment Terms or KETs in writing in order to minimize employment disputes. Once, both the employer and employee have their mutual terms in the paper signed by both parties, there is little scope for dispute unless there is a marked deviation from the agreed terms. The MOM also give confirmation that they will impose a heavy fine on employers who do not comply with the norms.
Considering the cost of implementing a payroll system in Singapore, the MOM website gives these options to SMEs. So, they can generate the payslips Singapore directly from the government website. They can also maintain hard copies of hand-written payslips. The MOM is also conducting 2-day seminars and workshops for the employers. It is important to make sure they understand what they need to finish or do and what should they do.
Payslips Singapore aims to describe the wages or work results that employees get. Salary is a mandatory component that companies must fulfill as an industry. Manually managing company salaries will make the company overwhelmed and difficult to handle. That’s what makes companies need Singapore payroll software to make it easier. Singapore payroll software is one of the software that can help companies in distributing employee salaries, calculating taxes, and managing employee attendance.
Read more: 7 Best Payroll Software in Singapore & Indonesia
The Itemized Pay Slip
Under the amended employment act, it is mandatory that the employer gives an itemized bill along with the salary or within 3 days of paying the salary. It can give the Payslip as a soft copy or a hard copy which can also be a hand-written copy. The itemized Pay slip must contain the following details:
- Employer’s Full name
- Employee’s Full name
- Date(s) of payment of salary. Multiple dates are relevant when the employee has multiple payments. It could be some pending payments or accrued bonuses.
- It must clearly mention the basic salary. Also, the details regarding the pay per hour for the hourly employee and the total hours or piece.
- The period of salary payment.
- Details regarding the allowances paid. For example, travel allowance, uniform allowance, etc.
- Any additional pay like the bonus, holiday pay, etc.
- Any deductions including the CPF contribution of the employee, loss of pay on account of leaves, etc.
- Overtime hours (if relevant)
- Overtime pay (if relevant)
- The period for which overtime is paid if it is different from the salary period. (if relevant)
- Net salary paid
Payslips of the last 2 years of an ex or current employee is mandatory for the employer to make. It is mandatory to keep 2 years of payslips of ex-employee and keep them for a year since they leave. Since this was mandatory for all organizations except SMEs, the current rule applies basically to them for the time being.
Cloud-based ERP for Payroll Software Singapore
The SMEs can adopt cloud-based Payroll software solutions to comply with the MOM’s latest ordinance and at the same time benefit further from the digital data that will be available to them using this software. Though it is not mandatory to maintain the employee details in a digital form.
A simple Payroll model with employee details, terms of employment, salary details, government mandates for each employee, etc. Integrating all that with accounting can improve the salary disbursement and HR requirements of SMEs. Using this data, the SMEs can also generate various comparison reports that they can use for appraisals, accounting, and budgeting.
Payroll software Singapore is one of the software models that companies must have. The obstacle that companies experience when they don’t use the Singapore payroll system is the difficulty in managing employee salaries. A large number of employee salaries makes companies need Singapore payroll software that is integrated with company accounting.
Cloud-based implementation will be more cost-effective for SMEs as they don’t have to invest further in setting up a system. The cloud-based software is exclusively for handling employee data. Instead, the person in charge of HR can just input the data into the software using a browser over a secured internet connection.
Cloud-based solutions will ensure the government’s compliance with the data input. It will also generate the required payslips to be given to the employees and consolidated reports to the government. If the government does a modification then the vendor will do the mandatory changes later. Cloud-based Payroll system solutions can be made accessible on the mobile platform also which makes it easier for the HRMs to access the data from anywhere, any time of the day.
Singapore payroll software is also able to calculate and distribute various taxes that employees have. In addition, Singapore Payroll Software is also able to manage employee attendance such as leaves, absences, and incoming data. This is what makes large companies in Singapore use Singapore payroll software a lot when managing their companies.