Techblog
New Payslip app to aid SME compliance with MOM itemised payslip requirements
As the new itemised payslip requirements for SMEs stated by the Ministry of Manpower (MOM) Singapore take effect from 1 April 2016, resource-strapped SMEs might find it a challenge to ensure compliance. However, there are easy-to-use automated solutions available to help small and medium enterprises meet these requirements by the given timeline.
In April 2014, the Ministry of Manpower (MOM), National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF) formulated tripartite guidelines for the issuance of itemised payslips and written Key Employment Terms (KETs) as part of changes to the Employment Act (EA).
As SMEs expressed concern over the extra administrative costs, these changes were not mandatory initially. But in July 2015, the EA mandated that SMEs had to implement these changes, along with maintaining records of past and present workers, by April 2016.
Closer to the date, SMEs continue to be busy with numerous day-to-day business concerns to set about implementing these guidelines. “We understand the pressures which small companies face when running their business,” says Andrew Lim, managing director of business group at Singtel Group Enterprise. “Many lack resources to improve their own productivity, let alone run their operations efficiently.”
Given this scenario, SMEs can turn to uncomplicated and inexpensive automated solutions such as Singtel myBusiness’ Essentials Payslip app.
As you evaluate your options leading up to the announced date of 1 April 2016 to ensure compliance, note the following essential features that should be covered by any app that automates the process.
Centralise payslip information in one online platform
Since maintaining old-fashioned paper documentation is no longer feasible given the level of detail required by the new payslip guidelines, what SMEs need is a centralised platform to store all information regarding employee payslips.
Automate calculation of pay and allowances
It would be time-consuming and error-prone to do this manually for each employee, especially the ad-hoc components of the salary package. Your solution should be able to take care of these computations competently.
Ernest Chia, a director at Complete Evaluation Pte. Ltd., rates myBusiness Essentials Payslip highly on this aspect. “The app’s ability to include overtime pay calculations is highly useful. The overtime pay function allows companies to accommodate flexi-work arrangements, which is in line with the government’s push towards greater work-life balance.”
Enable employees to quickly access and print their payslips
The current payslip guidelines are very much in the interest of employees. SMEs that keep this in mind will appreciate an app like myBusiness Essentials Payslip, which allows employees to log in, retrieve and print their payslips. This kind of transparency brings invaluable trust to the employer–employee equation.
Alan Wong, a director at Fat Hong Tea Merchants, looks forward to using the app. “This app will allow me to devote more time to managing and growing my business. My staff would also be happier as they can access their payslips quickly, and see their salary and employment details at a glance.
Archive older payslips to ensure compliance from the earliest stage
To ensure complete compliance with the new guidelines, it is important to maintain records of past payslips, even those of employees that no longer work with the company. It is critical for any solution to be able to archive information and store it for a few years.
myBusiness Essentials Payslip is able to archive this type of info for two years without additional charges. It is also easy on the pocket (currently free for five employee records) and can be accessed anywhere in the world via the web. The payslips generated by the app also come with the customised company logo, and users get to enjoy dedicated helpdesk support.
An easy-to-use, automated solution is essential for SMEs to ensure compliance with the new payslip guidelines by the stipulated 1 April 2016 date. myBusiness Essentials Payslip steps in to fulfil this need seamlessly, as:
- Small and medium enterprises need not waste time and resources storing, archiving and calculating itemised payslips as per the current guidelines.
- Employees are given access to their respective records, building trust in the employer–employee relationship.
- The app can be accessed globally, is economical and offers dedicated helpdesk support.
myBusiness Essentials Payslip is the ideal answer for SMEs with between five and 50 employees. “This is a timely solution given the government’s compliance requirements,” says Lim. “With this app, SMEs can now create, store and print payslips easily in a cost-effective and convenient manner. SMEs can use it to meet the government deadline and focus on their business with peace of mind.”