Infotech Launches New Enhansed Payroll Software for Singapore SME companies
Payroll System is a important software tool for any type of companies to manage employee monthly salary processing.
In addition to the calculation of salary the payroll system can able generate a pay-slip which can be issue to the employees. The employee’s salary can be directly sent to their bank account via online submission.
Many companies still using manual methods or using excel sheets to calculate employees salaries. Of course it can be done by manual but it is a tedious process every month. The payroll processing includes calculation of salaries, overtime, additions & deductions.
In addition to that the payroll managers must calculate the monthly provident fund details, any ethnic fund contributions and year end income tax submission. Further monthly pay-slip need to be given to the employees. so that the employees can check their salary particulars. And the pay-slip can be used to apply for their personal loan, credit card, etc.
In addition, companies issuing cheque / cash for salary disbursement & using other manual methods for monthly provided fund submission.
Especially the year end tax submission is a big task to the payroll managers. They need to consolidate all the 12 months salary, need to differentiate taxable & non taxable incomes. And then need to submit to the Income tax department.
In Singapore there are few mandatory monthly contribution must be made to relevant departments like CPF (Central Provident Fund), FWL (Foreign Workers Levy), SDL (Skill Development Fund) CDAC, SINDA, MBMF.
CPF: This fund is management by a Singapore government body called Central Provident Fund. The objective is, to provide retirement income & housing options to the Singapore Citizens & residents. This CPF amount varies depends on the employee’s income & age. There are different set of percentage set by the CPF board to calculate the employee’s & employer’s portion.
It is mandatory that the employee must deduct the employee’s contribution from their salary and must send it to the CPF board together with the employer contribution before 14th of the every next month. It is a basis function that any Singapore payroll software should able to compute the CPF details as per CPF board regulation and should have the online facility to send it the CPF board directly.
SDL : This SDL (Skill Development Levy) is contributed by the employer only. Currently 0.25% of the employee’s salary up to S$4,500 must be contributed by the employer. This fund is managed to provide quality training to the Singapore employee’s workforce. Now the government is offering up to 90% subsidy to the qualified skill & training programs. The payroll software should have the capable to calculate and should have the online facility to send the details to the CPF board.
CDAC, SINDA, MBMF: these are the community funds independently managed by the relevant ethnic organizations. Singapore government makes it mandatory that the entire employee’s must contribute to the respective organizations. The employer should deduct the relevant ethnic funds and must contribute to the CPF board every month. So the payroll software should have the option to calculate and online facility to contribute to the CPF board.
IR8A : It is a employer’s duty to send the employee’s yearly income to the IRAS (Inland Revenue Authority of Singapore). And the IRAS make it mandatory that the entire Singapore employer’s should contribute it via online method called Auto Inclusion. So the payroll software should able to combine the whole year’s employee’s income and should able to print out the IR8A forms which can be given to the employee’s for their reference. And the payroll software should have the Auto Inclusion online facility to send the income details directly to IRAS.
In addition to that good payroll software should have the option to print out the payslip. It must clearly show the employee’s basic salary, allowances, deductions and CPF & other ethnic fund deductions. At the end the payslip should have the net salary for the months and option to view the Year to Date details as well.
Singapore government takes proactive steps to maximize the productivity of the payroll mangers by providing cash grant for implementing new payroll software.
Info-tech tie-up with Singapore Government IDA and launched a new enhanced payroll software with up to 70% grant for Small and Medium sized companies.
- Contact Information
- Babu Dilip
- Info-tech Systems
- (65) 62973398
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.