The Ministry of Manpower (MOM) announced a new ruling that it makes it mandatory for all Singapore SMEs to issue full payslips to their employees. However, after consultations with business owners, the ruling was deferred. This gives businesses more time to react to the ruling, and make adjustments to their systems to meet the requirements.

What is the MOM ruling’s impact on SMEs?

According to a recent Straits Times article, the biggest worry is that providing full, itemised payslips will further add to rising manpower costs, driving up expenses for SMEs. Although the majority of SMEs currently issue simple pay stubs reflecting salary and CPF deductions, 9 out of 10 SMEs do not provide fully itemised payslips as per MOM’s standards.

What should a full payslip include?

MOM requires full payslips to reflect a comprehensive breakdown of an employee’s salary. This should include basic salary, overtime pay, allowances, bonuses and deductions made towards CPF and approved donations. 

Problems with processing full payslips

The payslip process can become complicated in cases of ad-hoc or part-time employees who are paid in a non-traditional manner. Some SME owners also point out that preparing full payslips for employees who are close relatives or friends seems unnecessary.

Payroll software is an additional expense that SMEs will have to consider. HR would also require additional time and resources to create and issue MOM-compliant payslips.

So the question is, what can you do to make your payslip process more cost and time efficient?

Smart Payslip Processing with Singtel’s MecWise Payroll App

One way of saving time and money on payslip processing is through using a software solution such as Singtel’s MecWise Payroll. 

Requiring no upfront capital investment, MecWise Payroll is a fully automated payroll solution that allows SMEs to create fully itemised payslips within a fraction of the time required by traditional payroll software or manual payroll processes.

What does MecWise Payroll do?

MecWise Payroll is easy to use, with a guided setup wizard that requires no programming or technical knowledge. Once it has been set up, MecWise Payroll fully automates the payroll system, consolidating all the payroll information into one database and offering the following features:

• Calculations of different pay components such as bonus, advance pay, monthly variable component (MVC), etc.
• Submissions to CPF Board, IRAS and Bank GIRO through built-in templates (no manual computation required).
• Easy retrieval of historical data with customisable pay options.
• Regular, automatic updates of all the latest statutory regulations and taxation laws.

To help SMEs to be compliant to the Ministry of Manpower requirements on issuance of itemised payslips and maintaining of records, myBusiness has introduced Essentials Payslip solution that allows SMEs to quickly and easily create and manage employee payslips. Get a FREE 5 users license version. 

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