Setting up Pay Run Inclusions

Pay Run Inclusions comprise of additional pay items that are set up against an employee and then automatically included in the pay run. The specific items include:

• Additional earnings
• CPF adjustments
• Deductions
  • Bulk updates to employee deductions
• Employer liabilities
• Expenses
• Tax adjustments
  

These can be set up to include a specific start date and end date (otherwise it can repeat indefinitely). To set up a Pay Run Inclusion for an employee, choose the relevant employee from the employee list and then select Pay Run Inclusions from the left side menu. You will see the following screen:

From there, refer to the following instructions below depending on what item you want to set up.

Setting up recurring Additional earnings

Add earnings which are to be processed on a regular basis. An example of when to use this could be a regular laundry or tool allowance.

1. Click on 'Add'.
2. Select the appropriate pay category from the drop down list.
3. Select the location the earnings are to be allocated to. If the employee's default location is to be used, there is no need to make a selection.
4. Enter the number of units to be paid in each pay run into the 'Earnings (per pay run)' field.
5. Enter the rate to be applied, this will apply to the number of units entered.
6. Enter any notes if you want the employee to see them on their pay slip.
7. Select which pay runs the earnings should apply to. Options are all future pay runs (there will be no end/expiry date), all pay runs where the pay period starts before (end date will be specified) or all pay runs until the maximum amount has been reached (expiry amount will be specified).
8. Click on 'Save'.

An example of an Additional earnings records is as follows:

Setting up a recurring CPF Adjustment

1. Click on 'Add'.
2. Select the appropriate contribution type from the drop down list (i.e. Voluntary CPF or Medisave)
3. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount or a Percentage of Gross earnings. 
4. Enter any notes if you want the employee to see them on their pay slip.
5. Enter the date this inclusion is to commence.
6. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
7. Click on 'Save'.

An example of a CPF Adjustment is as follows:

Setting up a recurring Tax Adjustment

An example scenario of when to use this would be when an employee has requested additional tax be deducted from their pay.

1. Click on 'Add'.
2. Select from 'withholding' or 'clearance' (e.g. in the case or foreign employees who are ceasing employment and leaving the country). N.B. If withholding tax is deducted from an employee’s income, the employer must complete a S45 notice and pay the withheld tax to the IRAS by the 15th of the month following the payment. 
3. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount or a Percentage of Gross earnings. 
4. Enter any notes if you want the employee to see them on their pay slip.
5. Enter the date this inclusion is to commence.
6. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
7. Click on 'Save'.

An example of a Tax Adjustment is as follows:

Setting up a recurring Deduction

1. Click on 'Add' and select the appropriate deduction category from the drop down list. The business deduction categories (on the payroll settings > deductions page) will determine what the options are. There are 6 system default deduction categories consisting of;
   • Chinese Development Assistance Council (CDAC) Fund: The CDAC Fund is used to fund CDAC’s programmes and assistance schemes to help the students, workers and families from the lower income groups overcome their challenges and achieve social mobility;
   • Eurasian Community Fund (ECF): ECF is a non-profit self-help group for the Eurasian community approved by the Government of Singapore;
   • Singapore Indian Development Association (SINDA) Fund: The SINDA Fund was set up in 1992 as a community fund for the benefit of Indians;
   • Community Chest: Funds raised go towards more than 100 social service agencies supported by Community Chest;
   • MBMF - Mosque Building and religious education: The Mosque Building component is used to build new mosques, upgrade and redevelop current mosques. The Religious Education component is used to support current and future religious education needs of the Muslim community;
   • MBMF - Mendaki: The Mendaki component is used to develop educational and social programmes to strengthen and uplift Malay/Muslim families.
     
     NB: These categories are considered self help group (SHG) funds. Where a pay category has been set up as 'SHG exempt' the earning associated with that pay category will not be included in earnings for the purposes of deductions for the above deduction categories. The 6 system categories mentioned above will populate both scheduled pay runs and adhoc pay runs if there is a pay run inclusion created for the employee.
2. Enter the deduction amount to be applied. It can be a Fixed amount, a Percentage of gross earnings, or Varied amount based on earnings (for MBMF deductions 'Varied' is the only applicable option) ;
3. Choose a frequency option. You are able to select from:
   • Pay run earnings: The deduction will be included in every pay run for the specified amount
   • Total monthly earnings: The deduction will be calculated using the month to date earnings. The 'month to date' value used for the calculation is defined as any earnings that fall within the calendar month based on the pay period end date. The range of time used is from the first day of the month to the last day of the month.
     
     For example, if there are 2 pay runs that have a pay period end date falling within March and there is a fixed amount deduction setup, the first pay run will deduct the specified $ amount, as expected and the second pay run will display the deduction record with a $0 value and note confirming the deduction has already been taken for the month, see below:
     
     
     
     If the above deduction was updated to 'Percentage of gross earnings' with the value set at 1.5%, the first pay run will deduct 1.5% of the employee's gross earnings for the pay run, in the second pay run, 1.5% of the gross earnings will also be deducted.
     
     If the deduction was updated to 'Varied based on earnings' for CDCA for example, using the below tiers and the following earnings - pay run 1: $3,000 and pay run 2: $5,000:
     
     
     
     The first pay run will deduct $1.00 (as the month to date earnings are $3,000).
     
     The second pay run will deduct $2.00. The month to date earnings are now $8,000, bringing the deduction amount for the month to $3.00. $1.00 was already taken in pay run 1, so only the difference needs to be deducted in pay run 2;
4. Select whether you want to pay the deduction manually, paid to a bank account, or paid to the CPF account. Where a self help group (SHG) deduction category is selected, only the 'paid to the CPFB option will be available as the funds must be paid to the CPF account. The 6 default deduction categories listed above are classified as SHG fund;
5. If in Step 4, you have chosen a bank account, ensure you select the relevant bank account (you will need to have been created first in the employee file > bank accounts page);
6. Enter the preserved earnings details, if applicable;
7. Enter any notes if you want the employee to see them on their pay slip;
8. Enter the date this inclusion is to commence;
9. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached);
10. Click on 'Save'.

 An example of a Deduction is as follows:

Bulk updates to employee deductions

If you have a number of employees that you are needing to update deductions for, you can do this in bulk by following the instructions within this article. 

Setting up a recurring Expense

An example scenario of when to use this would be when an agreement has been reached with an employee that the company will reimburse mobile phone expenses and will not form part of their gross wage.

To add a new recurring employee expense, click the 'Add' button on the right of 'Expenses' and complete the following details: 

1. Select the appropriate expense category from the drop down list. The list here will reflect the expense categories that have been added at a business level on the payroll settings > expenses page. 
2. Select the location the expense should be costed against. This will default to the employee's default location however you can change this to another location that the employee is attached to.
3. Assign a tax code to expense categories to cater for sales taxes that may be applied to expense claims. 
4. Enter the expense reimbursement amount to be applied per pay run.
5. Enter any notes if you want the employee to see them on their pay slip.
6. Enter the date this inclusion is to commence.
7. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
8. Click on 'Save'.

Setting up a recurring Employer Liability   

1. Click on 'Add'.
2. Select the appropriate liability category from the drop down list.
3. Enter the liability amount to be applied per pay run. You can choose to enter a fixed dollar amount, or a percentage of gross pay.
4. Enter any notes if you want the employee to see them on their pay slip.
5. Enter the date this inclusion is to commence.
6. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
7. Click on 'Save'.

An example of an Employer Liability is as follows:

Additional Notes:

1. Within the employee's Pay Run Inclusions page, you will see updates on any inclusions:

• that are set to expire once a certain dollar amount has been reached 

• that are set to expire after a particular date

2. To edit an existing pay run inclusion, simply click on the name and the settings will appear. Make the relevant changes and click on 'Save'.

3. To delete an existing pay run inclusion, hover your mouse over the inclusion so that the 'x' appears. Click on this icon and then click on 'OK'.

4. A note that has been added to a pay run inclusion will no longer appear on the employee's pay slip once the inclusion has expired. The YTD amount will still appear on the pay slip but any associated notes won't. The notes WILL still appear on any of the previous pay slips where the pay run inclusion was still active, as long as the 'show line notes' option on the Payroll settings > Pay slips page has been ticked.   

5. In order to set up recurring employee deductions, employer liabilities and expenses, the categories initially need to be created in Payroll Settings. Click on the relevant Inclusions below to find out more information on how to set these up:

• Pay Categories
• Deductions
• Employer Liabilities
• Expenses

If you have any questions or feedback, please let us know via support@yourpayroll.io