What is KET and Itemized payslips?
Presented by: Steve Koh
General Manager AGHRM
• Employment Act is Singapore’s main employment law. It provides for the basic terms and working conditions for employees, while balancing employers’ need to stay competitive. This act is regularly reviewed to keep pace with the changing labour force profile and employment landscape. The last review was in 2014.
• Key changes effective 1 April 2016:
– Issuance of Payslips
– Key Employment Terms
– Keeping of Employee Details
• Objective for these changes:
– Allow employees to better understand their regular salary components, as well as employment terms and benefits.
– Help the employers to prevent misunderstandings and minimise disputes with their employees
Solutions
Services
•Provides end to end HR management solutions
•Comply to payroll requirements in Singapore, Malaysia and Indonesia
•Setup and configure solutions based on customer requirements
•Train and support installations
•Manage employees’ information
•Process monthly payroll in Singapore and Malaysia
•Submit bank details
•Submit monthly CPF and annual IRAS reporting
•Assist in other claims (e.g. maternity, childcare, IR21, NS)
• Incorporated in 2006 in Singapore • Development and operations are
based out Singapore
• Till date, we have over 400
corporations using our solutions in more than 12 markets in Asia-Pacific • SPRING, appointed HRSS provider
and pre-approved ICV integrated solutions
• IRAS, supporting payroll software • Inland Revenue Board of Malaysia,
compliance to MTD (Monthly Tax Deduction) China Australia Indonesia Singapore Malaysia Philippines Hong Kong India Korea Taiwan Japan •France •United Kingdom •United States Company Profile
•
Objective:
– Assures employees about their regular income as well the main benefits they enjoy by working in the company.
– Develop trust between employers and their employees.
•
Who should receive the key employment terms in writing?
– All employees who have a continuous employment of at least 14 days should be provided with key employment terms in writing.
Employers are encouraged to provide the key employment terms in writing to their
employees before the commencement of work, as far as possible. If not, employers should provide the terms no later than 14 days after the start of employment.
•
Items to be included:
– Contracting parties (Name of employer and Name of employee)
– Job title and main duties and responsibilities
– Date of commencing employment
– Duration of employment (Only for employees on fixed-term contract)
– Daily working hours, number of working days per week and rest day(s)
– Salary Details
• Salary period
• Basic salary per salary period
• Fixed allowances/deductions per salary period
• Overtime payment period
• Overtime rate of pay
• Other salary-related components (e.g. bonuses, incentives)
– Leave entitlements (e.g. annual leave, outpatient sick leave, hospitalisation leave, maternity leave, childcare leave)
– Other medical benefits (e.g. insurance, medical, dental benefits)
– Probation period
– Notice period for termination of employment initiated by either party
• Format - Employers could issue the payslip in hard and/or soft copies Itemised Payslips Employer Name Staff name Payment period Payment Details
Overtime units Overtime amount
Deduction Details Nett amount
•
Duration of storage
– For current employees: Latest two years.
– For ex-employees: Last two years, to be kept for one year after the employee leaves employment.
•
Types of records:
– Employee records
• Employee details
• Leave details
– Salary records (same as itemized payslips)
Banks Accounting Solutions
Government Agencies
Singapore
Malaysia Indonesia
KET
• Online Document
Centre
Itemised Payslips
• Automatic
generation of
payslips
• ePayslips
available to staff
via email, web,
mobile
Employee Records
• Stores unlimited
records of pass
employees
• Comprehensive
employee details
• Includes leave
management
Case Study #1 - Background
Company A provide landscaping services and has been
operating for over 10 years. 3 years ago, they had about
40 employees
Since then, they went into cleaning services and
expanded to 300 staff in 3 years’ time.
However, their HR processes could not keep up. HR team
grew from 1 to 3. But everything was manual.
Case Study #1 – Payroll Process
Time Management
•Staff clock in/out using punch card
•Before payroll processing, HR needs to collect all punch card from 10 worksites
•Compute OT/allowances
Leave
•Leave is tracked using an Excel spreadsheet at HQ. •Staff applies using paper forms.
•HR needs to collect these forms and update balance.
Payroll
•Payroll is processed using MS Excel •Payslips are issued on upon request
•Bank transfer are keyed in manually into the bank website
Problem Faced
Payment rules are interpreted by the person doing the computation.
Biased computation. Resulting in unnecessary payments and staff unhappiness
The final draw, funds embezzlement!
One of their HR staff was caught siphoning funds from other staff to her own account.
Case Study #1 - How did AGHRM help ? Staff Clocks in/out Human Resource, Finance Senior Management AGHRM P E R SO N N E L A T T E N D A N C E LE A V E P A Y R O LL •resource utilization monitoring Staff Clocks in/out Staff Clocks in/out Automatic Sync of data
• Automatic OT, Allowance
computation based on predefined business rules
• Comprehensive payroll reports
• Audit trail
• Bank file generation
Benefits
a. Automate their HR processes
b. Standardise payment rules
c. Stronger management control
Overtime & Allowance Computation
•
Flexible Rule configuration
•
Common Types of allowances:
• Overtime • Daily • Weekly • Shift Allowances • Transport/Meal allowances • Public Holiday
• Auto Lunch Hour Deduction
• Etc.
•
Support rules for selected
employee group
•
Summary Report
•
Variance Report
Payroll Reporting
•
Reconciliation Reports
Solutions
Services
•Provides end to end HR management solutions
•Comply to payroll requirements in Singapore, Malaysia and Indonesia
•Setup and configure solutions based on customer requirements
•Train and support installations
•Manage employees’ information
•Process monthly payroll in Singapore and Malaysia
•Submit bank details
•Submit monthly CPF and annual IRAS reporting
•Assist in other claims (e.g. maternity, childcare, IR21, NS)
Price: $5,001 & above
Employees: 50 and above Modules • Personnel • Payroll • Leave • Claims • Attendance • Appraisal Price: $3,400 Employees: 50 Modules • Personnel • Payroll • Leave • Claims Price: $2,000 Employees: 20 Modules • Personnel • Payroll • Leave (admin) Our Solutions
Supported grants:
a. ICV - $5000 per
voucher
b. PIC – 60%
subsidy for cash
option
Managed
Payroll Services
Our ServicesPackages starts from
•
$300 per month
To help SMEs improve and optimise HR operational efficiency, SPRING Singapore has
appointed a common pool of HR service providers to offer SMEs shared access to HR
systems and services.
*Reference channelnewsasia 22Apr2015
Overview
Funding Support
SMEs can receive funding support of up to 70% of qualifying costs including
a. a one-time set up cost
b. monthly subscription cost capped at 12 months
Participating SMEs must commit to the subscription of these services for a
minimum period of 12 months.
Questions
