ED 53

MARKET INTELLIGENCE
MARKET INTELLIGENCE
Employers may need to
provide itemised payslips to
employees from 1 April 2014
mployers need to brace themselves for
E
several amendments to the Employment
Act (EA) with effect from 1 April 2014. While
the amendments grant employers exibility
in certain employment practices to cope with some of
these changes, they also include stiffer penalties for
non-compliance with the EA.
Among the amendments is the requirement that all
employers must provide employees with itemised
payslips. This will help workers to check if incoming
payments are correctly processed each month. And at
the same time, it will prevent irresponsible employment
practices.
With the requirement for itemised payslips for all
employees, many SME business owners are concerned
with an increase of administrative and manpower cost.
However, the Ministry of Manpower (MOM) stated that
it will be legislated by phases in a sustainable way.
It is widely agreed that manual calculations and bookkeeping
is tedious, prone to error and time-consuming.
The solution is to use a reliable system to calculate
payroll and statutory contributions. Moreover, SMEs
can save even more with the Productivity and Innovation
Credit (PIC) Scheme.
Case Study
Ms Sophie is the principal of Discovery Garden
Childcare Centre. She has an average of 41 employees
and she prepared her payroll and payslips manually
with simple Microsoft Excel spreadsheets almost two
weeks in advance of payday. Although she followed the
latest CPF, MOM and IRAS updates diligently, it was
tedious, time-consuming, and difcult to comprehend
and apply the changes appropriately.
It was always a stressful and tiring period when the pay
date is approaching each month, until she switched to
using an online payroll system - PayDay! Software as
a Service (SaaS). It is a hassle-free, secure, affordable
payroll system that is online 24 hours a day, seven
days a week.
“Now, I use PayDay! to calculate my employees’ salary
and CPF contributions automatically. I do not need to
keep track of all the latest legislation, it’s all maintained
by the system. Now I can even run my payroll just a
few days before pay date.” said Ms Sophie.
“After running payroll, it auto-generates the Bank
upload le, CPF and IRAS e-submission le. My
employees can also view their payslips immediately
on their mobile app or any internet browser. I do not
have to spend time on printing payslips and reminding
myself to do so. I am well prepared for the EA legislative
changes.” E
PayDay! is an easy-to-use, 100%
compliant web-based payroll solution,
designed to meet the payroll needs of
your small business. Visit www.payday.
com.sg and all Entrepreneurs’ Digest
readers enjoy 60 days free usage (Key
in Free Pass Code: EDRPAYDAY).
46
JAN FEB 2014
ENTREPRENEURS’ DIGEST