As the issuance of itemised payslips becomes mandatory come 2016, businesses, especially SMEs, need to have a payroll system in place that complies with the guidelines set by the Ministry of Manpower (MOM), National Trades Union Congress and Singapore National Employers Federation.
Under the guidelines, each employee must receive a payslip at least once a month, which shows his basic salary, allowances, deductions, overtime hours and pay for the salary period, as well as the bonuses, rest day or holiday pay and net salary.
The mode of payment for the salary and the business owner’s Central Provident Fund contribution should also be indicated.
Entrepreneurs who hire extra hands during seasonal spike in demand for their products and services also need to administer payslips to their temporary workers. The payslip should contain the basic rate, whether they are paid per hour, day or piece, and the total number of hours or days rendered or pieces produced.
SMEs realize they would need help in preparing the detailed payslips every month, as well as in computing the wages down to the last working day of a regular employee who has resigned and the output of extra workers hired during a salary period.
Get it right the first time.
It shouldn’t be difficult to comply with this legal requirement as early as now with the help of a feature-packed payroll solution like iSuperPay. As it automates payroll management, iSuperPay handles varying pay rates and computes overtime claims per hour or day. It even calculates the pro-rated salary of a new employee or the final pay check of one who resigned.
The system is capable of handling mass adjustments, multiple pay runs per period and back payments, plus it comes with a report writer. The SME can customise the pay periods and pay items as well as the criteria for reports, and even the access rights to suit its needs.
iSuperPay prepares the payroll like clockwork and disseminates itemised payslips through email, which can be printed if employees prefer to keep hard copies. Using this system, SMEs can very well release the payslips within seven days after the last day of the month, which is the period set in the guidelines.
There are more benefits to this system, on top of promoting progressive workplace and good Human Resource (HR) practices. Experience lower HR-to-staff ratio as the payroll system gets the work done fast and accurately with less manpower. It streamlines the process and sets up a centralised system where all employee data and functions can be found.
iSuperPay enables employees to access their information and personally update their records, which eliminate duplication and errors in HR data. Also, it provides self-service functions where employees can request for leaves or check applicable benefits as the need arises. As the system is web-based, all these can be done anytime, anywhere. Managers can also view and approve leaves and other requests online.
All in all, the system increases business efficiency by providing the whole organization with a one-stop shop for all HR and payroll processes.
SMEs who want to go a step further can opt for an integrated HR and payroll system – the iSuperSuite HRMS. Besides payroll, it processes leave applications and updates balances automatically, manages attendance and work hours with its time clock component, handles requests for claims and manages other HR tasks like tracking employment history, training records, awards and professional certifications, family information, etc.
For a hassle-free way of preparing itemised payslips and issuing these via email, SMEs can utilize payroll software. Then it should be easy to observe the MOM’s mandate on this good employment practice.