Getting itemised for business
One of the biggest changes to Singapore’s employment regulations last year was the introduction of compulsory itemised pay slips for all workers. Since April, 2016, all employers have had to provide itemised pay slips to their employees.
A grace period, where authorities took an educational and “light touch” approach to enforcing the new rules, ended on March 31 this year. Now, businesses – including SMEs – could find themselves liable for penalties of up to $200 per affected employee if their pay slips are not filled out correctly, or supplied at the appropriate time.
Fortunately, the vast majority of businesses appear to be in compliance.
According to new research by Justlogin, a payroll solutions provider, the percentage of businesses issuing itemised pay slips increased from 74% in early 2016, to 95% early this year.
That’s a positive improvement by any standard. Based on a survey of over 300 local entities, it shows not just that businesses are adapting quickly to the new rules, but also that they understand the value that accurate and transparent pay slips offer to staff and – ultimately – the business itself.
A GUIDE TO ITEMISED PAYSLIPS
The downside of this, however, is the fact that a significant proportion of those compliant businesses are providing manually-generated pay slips. Some 25% of businesses are still using a basic spreadsheet tool, or, worse, pen and paper, to produce their payment advice for staff. They are even double-handling everything so that copies of the pay slip are kept as part of business records, in accordance with the new rules.
“We have heard many stories from SMEs about how tedious it is to create itemised pay slips manually,” KC Kwa, CEO and Founder of Justlogin says. “This has been a huge challenge and deterrence, which prevents them from complying with the requirement.”
Automated payroll software can take much of this burden out of adhering to the new rules, and ensure both effective and efficient compliance. The best systems will be scalable from just a handful of employees to workforces numbering in the thousands. They will also be integrated into other financial recording systems, including the most popular accounting software packages.
Compliance from the cloud
Justlogin’s award-winning ePayroll system goes a couple of important steps further.
Firstly, the system is fully customisable for each individual client. Each user can create as many payroll items as they need, selecting only if it is an allowance, a deduction, or a reimbursement. It is then automatically displayed on the itemised pay slip, giving full transparency between the employer and each staff member.
ePayroll is also delivered via cloud technology as a software-as-a-service product. This means all the data is available at the click of a mouse, but there is no need to worry about losses of information through security or equipment malfunction. Users don’t need to keep up to date with ever-changing regulations. Contribution rates and all other policy changes are always taken into account from the moment they become effective.
The software also makes data analysis user-friendly and simple. With over 20 tailored reports available, users are able to review anything from monthly salaries to annual payroll expense comparison at just the click of a mouse. This makes compliance with Singapore’s changing employment regulatory system not just a simple exercise, but also a useful one in terms of gaining superior data, analysis, and insight into the organisation’s workforce expenses.
For an exclusive free trial of Justlogin’s e-Payroll solution for HRM Asia readers, connect here.