Pay Categories - Creating & Managing

You can create a pay category by following these steps:

1. Log into your payroll platform.
2. Click the  Business menu.
3. Click the Payroll Settings submenu.
4. Under Pay Run Settings, click Pay Categories.
5. Click the Add button.

   Helpful Hint

   When you create a new business, you can select from the common pay categories we have on the platform. However, you can still create new ones that match your business needs.
   
6. Type the name of the new pay category in the Pay category name field.
7. Tick the Is Fixed checkbox if this is a fixed pay category.

   Warning

   Fixed pay categories cannot be changed to hourly/annually/daily/monthly after it has been created. If that is required, you​ will need to create a new pay category.

8. Tick the Include in overtime rate button if you want this pay category to be considered for overtime calculation.
   
9. Click the Save button.
   

10. Fields in this category include:

    • Name
    • Units - If the pay category is a fixed pay category, this field will be locked and not editable. For all other pay categories, you can select from hourly, annually, daily, and monthly.
    • Penalty loading - this is penalty loading that applied on top of the base rate and the rate loading. 
    • CPF classification - select from:
      • additional wage - includes wages which are not granted wholly and exclusively for the month or wages made at intervals of more than a month e.g. a quarterly bonus
      • exclude from CPF - income flagged exempt from CPF will not be included in any CPF calculations
      • ordinary wage - includes wages due or granted wholly and exclusively in respect of an employee's employment in that month or wages payable before the due date for payment of CPF contributions for that month e.g. monthly salary

    N.B: The CPF classification field determines whether the income is included against the ordinary wage or additional wage for CPF. This link provides some background on your employer obligations regarding CPF.

    • SHG Exempt - checking this box excludes all earnings against this pay category from SHG calculations.

    The following 'system' pay categories are configured as SHG exempt:

    • • Compensation for loss of office
      • Lump sum ex-gratia payment
      • Lump sum gratuity
      • Lump sum notice pay
      • Retirement benefits (accrued from 1993)
      • Retirement benefits (accrued up to 31 Dec 1992)

    The following deduction categories are considered SHG funds:

    • • Chinese Development Assistance Council (CDCA)
      • Eurasian Community Fund (ECF)
      • Singapore Indian Development Association (SINDA) Fund
      • Community Chest
      • MBMF - Mendaki
      • MBMF - Mosque building and religious education

    All other deduction categories will have the deduction calculated on all pay run earnings. Refer to this article for more information on configuring employee deductions.

    • SDL Exempt - checking this box excludes all earnings against this pay category from SDL calculations.

    The following 'system' termination pay categories are configured as SDL exempt:

    • • Compensation for loss of office
      • Lump sum ex-gratia payment
      • Lump sum gratuity
      • Lump sum notice pay
      • Retirement benefits (accrued from 1993)
      • Retirement benefits (accrued up to 31 Dec 1992)

    Refer to this support article for more information on the SDL calculation.

    • Include in gross rate of pay: when selected, earnings against this pay category will be included in gross rate of pay for payments such as leave being paid out.
    • Accrues leave 
    • Hide Units on pay slip: When paying employees, there may be pay categories where you do not require the number of units and rate per unit to be displayed on the pay slip. Examples include paying a commission or bonus, or the primary pay category for salaried staff. Even though the units will still be displayed in the pay run, ticking this checkbox means they won't appear on the pay slip. For e.g., if you have ticked the setting for the 'Salary' pay category, the pay run will still appear as follows:  
      
      
      
      

      The employee's pay slip, however, will appear as follows: 
      
      
      
      

    • External ID - e.g. can be used if importing timesheets. The external ID can be used to match the pay category to the timesheet. If an external id is used that has been used before you won't be able to save it if the 'unique external Id' setting is switched on. This setting is located on the Payroll settings > Advanced settings page. See here for more information. 
    • Payment classification - this is used for reporting an employee's income information to the IRAS.
    • Rate Precision - option to set rate at between 0 and 6 decimal places. 
      N.B. In regards to rate precision, please note the following:
      * Additional earnings lines (configured at the bottom of the employees' pay rates screen) can be specified to up to 6 decimal places, regardless of the pay category setting
      * In the pay run, rates may be specified to up to 5 decimal places, regardless of the pay category setting
      
      

    

11. Once you have completed the details of the pay category, click the Save button on the bottom left of the pay category box.

In addition to the base value pay category, you can create linked categories.

For example a pay category could have the base value of Permanent - Ordinary hours but have linked categories of Permanent - Overtime x 100% and Permanent - Overtime x 50% in order to cater for any overtime worked. 

When a pay category is linked to a base pay category, you only need to specify the base rate for the employee and the rate for the linked pay categories will be automatically calculated.

You can create linked categories, by following the the steps below;

1. Click on the 'Add linked category' button in the bottom right hand corner of the chosen pay category. Please note that this option will not be available if the selected pay category is a 'daily' rate.
   
   
   
   
2. You will need to enter a name for the the linked category, then press the 'Add' button. 
   Note: you have the opportunity to delete the linked pay category up until the point that it is used in a pay run. If you move your cursor towards the end you will see a figure like this  By clicking on this figure you are able to delete the new linked pay category.
3. Once the linked pay category is added you will need to complete the relevant fields.
4. Press the Save button in the bottom left hand corner.

When you create a new business, there are a number of pay categories that are pre-loaded into the system for your convenience. Among these, there are 'System default' categories that are marked with a 'System' tag, as shown below:

These system maintained pay categories cannot be deleted or replaced, although some settings (such as loading) can in some cases be edited. This is intentional to ensure the system calculates the pay categories and associated components in a specific manner.

To delete a pay category, hover your mouse over the pay category name where you will then see a red cross icon on the right hand side of the pay category. 

Click on the "x" icon where a confirm popup dialog will then appear. If you click on "Delete" the pay category will be removed from the platform.  

Note: If a pay category has been used in a pay run, you are NOT able to delete it. Additionally, no "SYSTEM" configured pay categories can be deleted.

You are able to restore a pay category by going to Payroll settings > Restore deleted items, and selecting 'Pay category' from the drop down box. A list of all deleted pay categories will appear and you can click the 'Restore' option against the pay category that you are wanting to reinstate.