Payroll software helps to computes the salaries of employee each month. The employee might also be paid by the daily rate, hourly rate or even by monthly fixed salary. Employee may also have some kind of deductions and additions each month such as overtime pay, advance payment, daily allowances, medical claim as well as some kind of special allowance, etc… Also, the unpaid leave of employee, lateness and also early leaving pay should also be deducted from their salary.
Each month, payroll software must able to generate pay slip for employees. The payroll software should have the useful management reports such as report of Monthly Salary Summary, Reports of Overtime Payment, Taxation Report, Annual Report, and also the monthly Reconciliation Report.
Also, different countries also have their own set of computation for provident funds and for taxation. So payroll system must comply with regulation of local government for salary calculation.
Payroll in Singapore must be complying with the regulation of Singapore government as mentioned below.
CPF or CENTRAL PROVIDENT FUND:
Every employee who is a permanent resident of Singapore must even contribute the CPF to CPF board. Moreover, CPF amount includes employer contribution and the employee contribution. There are various some different percentage for calculation that is based on employee salary and age.
Ethnic Funds such as CDAC / SINDA / MBMF / ECF:
It is mainly based on employee ethnic group where you may see a need of the ethnic fund require to be contributed by employee. The amount of contribution will get deducted from employee salary each single month and the fund directly move to pertinent ethnic group welfare. Also, ethnic funds such as SINDA are meant for the Indians and the CDAC is meant for Chinese, MBMF for the Malays and ECF for the Eurasians. Moreover, contribution amount may differ depends on employee salary.
SDL such as SKILL DEVELOPMENT LEVY:
It levy should also be paid for various employees working in the Singapore. Recently SDL is about 0.25% for the salary up to about S$4500. The amount should be paid by employer to SDL board. This SDL board generally uses the fund to offer the subsidy for the employees training programs and also upgrade skills. Generally, there are various different training courses that are run by the vendors of SDL approved. The company may also be able to get about 90% subsidies from the SDL board though a company sends employees for the training.
Leaves such as Annual Leave, Child care Leave, Medical Leave and Maternity Leave:
There are specific kind of leaves that are mandatorily offered as the employee’s benefit. Annual leave such as 7 days, the Medical Leave which is of 14 days, even the Child care Leave that is of 6 days for the Singaporean & about 2 days for the non Singaporean as well as Maternity leave for 60 days.