When you're setting up the payroll module for the first time, here are the things you need to take note of.
Note: You can click on the links throughout this article to find out more about particular topics.
Step 1: Check Key Information
In order for payroll to work properly, the following information is required. Please ensure that all details have been filled out correctly.
For the company
Under Company > Company Profile:
Registered Address
Logo
Country
Currency
Sector
For each employee
Under My Employees > Personal > Profile & Personal Contact Details
Date of birth
Race
Religion
Under My Employees > Personal > Residency
NRIC/FIN *Note that Nationality needs to be set by Admin under Career Progression in order for this field to work
Under My Employees > Personal > Bank details
Bank details
Under My Employees > Employment > Employment Details
Country of work
Currency
Under My Employees > Career Progression
Nationality
Work pass type and sub type
PR effective date
Rate of pay
Basic pay
Joining date
Step 2: Add Pay Types
The default pay types such as basic salary, CPF contribution, etc. will already be in the system, so you don't need to set these up.
All CPF, SDL, SHG contributions will be automatically calculated and added to each employee's payroll.
The basic salary will also be automatically calculated, taking into account any leave that the employee has taken.
If you have any other pay types that are applicable, you can add them in two ways:
From the Pay Types Gallery
By creating a New Pay Type
1. Adding pay types from the Pay Types Gallery
When adding Pay Types, you can first look at our Pay Types Gallery to see if it already exists.
Go to Payroll > Pay Types > From Gallery.
You can search for a pay type using the search bar, or filter by type.
To add a pay type, click on the "+" button. You will be taken to the "Create Pay Type" screen where some fields will be pre-filled for you.
For each Pay Type, be sure to fill out the following information:
Fill in the name and a short description for the pay type
Select whether it is an Addition (to add to pay) or Deduction (to deduct from pay)
For example, commission is an Addition, while unpaid leave is a Deduction
If you select Addition, you will be prompted to select whether it is in the Gross Rate. This will impact the leave pay calculations (if using gross rate) as well as the unpaid leave calculations. Find out more about payroll formulas here.
Select whether it is CPF Payable
If you select Yes, you will be prompted to select whether it is under Ordinary Wages or Additional Wages
Select whether it is SDL Applicable
Select whether it is SHG Applicable
Select the Tax Type (same as in IR8A form)
2. Creating New Pay Type
If you don't see what you want in the Pay Types Gallery, you can click on New Pay Type to create one from scratch.
For each Pay Type, be sure to fill out the following information:
Fill in the name and a short description for the pay type
Select whether it is an Addition (to add to pay) or Deduction (to deduct from pay)
For example, commission is an Addition, while unpaid leave is a Deduction
If you select Addition, you will be prompted to select whether it is in the Gross Rate. This will impact the leave pay calculations (if using gross rate) as well as the unpaid leave calculations. Find out more about payroll formulas here.
Select whether it is CPF Payable
If you select Yes, you will be prompted to select whether it is under Ordinary Wages or Additional Wages
Select whether it is SDL Applicable
Select whether it is SHG Applicable
Select the Tax Type (same as in IR8A form)
Editing Pay Type
If at any time you wish to edit or delete a custom pay type, you can click on the pencil icon to edit, or the bin icon to delete.
System pay types cannot be edited or deleted. They will not have the pencil or bin icon showing.
Adding Pay Type to Payroll
Once the Pay Type is set up, you will be able to add it to a particular employee's payslip by clicking on the "Add new pay type" dropdown menu in each payroll.
Step 3: Configure Payroll Settings
Go to Payroll > Settings.
Choose the leave pay formula you wish to use, and how you wish to key in overtime hours.
Step 4: Create and Run Payroll
When you're ready to run payroll, you can follow the steps outlined in this article.