Legal aspect of payroll administration and its practical applications

Legal aspect of payroll administration and its practical applications ( with compliance on EA, CDCA, CPF Act and Employment ( Part-time employees ) Regulations )

Introduction

When a Payroll Administrator does not pay in accordance to the legislation such as the Employment Act (EA), Child Development Co-Savings Act (CDCA) and Central Provident Fund Act (CPFA), Employment (Part-Time employees) Regulations, then there is an infringement of the legislation. Should an employee lodge a complaint with the proper authorities such as the Ministry of Manpower and the Central Provident Fund Board, then the employer shall be liable for infringement of the legislation.

Conversely, what would happen if the Payroll Administrator were to overpay the employee? For overpayment, it is unlikely that there is any infringement of the statutory laws. However, the overpayment errors made could continue for years affecting the company’s bottomline. On the other hand, if there is underpayment, then on the same basis, employees may be unaware and this may continue for years. For underpayment, it does not only affect the employees when they are paid wrongly. It will also not reflect well on the employer and have an adverse impact on the financial results of the employer.

This one day workshop would ensure that administrators understand the obligation of statutory employees under the legislation. As for common law employees, the obligations under the employment contract. More often than not, if payroll administrators or compensation and benefits specialist adopt the same mode of administering the payroll for statutory and common law employees, then it is likely they may over pay or under pay. Also, in administering the leave benefits, if the same approach were to be adopted, then the same issue may arise.

This practical workshop aims to provide participants with valuable insights into best practices relating to salary and payroll administration.

 Learning Objectives:

  1. Understand the various statutory obligations on payroll administration.
  2. Differentiate between Statutory Law employees and Common Law employees (PMEs)
  3. Establish a payroll administration network to support the organization needs so as to enhance productivity and in compliance with the legislation.
  4. Comprehend payroll calculation formula/methods.
  5. Know the difference between statutory and contractual obligations.
  6. Understand the difference between entitlement and privilege.
  7. Comprehend what types of leave benefits that should be encashed.
  8. Know the differences between consolidated and unconsolidated wage structure.
  9. Know the differences between allowances and reimbursements.
  10. Know the various statutory leave schemes under the Employment Act and the Child-Development Co-Savings Act.
  11. Know the differences between ordinary wage and additional wage under the Central Provident Fund Act.
  12. Understand how to calculate payroll and its related payment.
  13. Know the part-time regulations under the Employment Act.

Course Outline:

A competent Payroll Administrator / Compensation Specialist must have the skills and knowledge in the following:

1. Introduction and the nature of employment law on payroll administration 

  • Scope and influence of employment law in administering payroll
  • Linkage of compensation to payroll administration
  • Components of payroll administration

2. Understanding Salary Structure

  • salary structure and total salary
  • consolidated salary versus non-consolidated salary
  • definition of basic salary
  • definition of gross salary
  • definition of salary
  • definition of wages
  • definition of income
  • definition of remuneration
  • definition of allowances
  • definition of reimbursement
  • definition of advance salary
  • definition of withholding salary

3. What constitutes salary

  • Minimum salary
  • Basic salary
  • Gross salary
  • Overtime payment
  • Bonus payments
  • AWS
  • Reimbursement
  • Productivity incentive payment
  • Travelling, food or housing allowances

4. The Legislation on Payroll Matters

  • scope of the Employment Act in relation payroll administration.
  • scope of the Child Development Co-Savings Act in relation to payroll administration
  • scope of the Central Provident Fund Act in relation to payroll administration
  • scope of the Employment (Part-time Employees ) Regulations in relation to payroll administration

5. Legal Compliance and Practices

  • definition of salary
  • definition of rate of pay
  • working hours
  • shift duties
  • rest days and public holidays
  • public holidays for PMEs (flexibility for employers)
  • computation of overtime pay
  • calculation of overtime payment for non-workmen
  • salary period and time of payment
  • payment on dismissal and resignation
  • authorised deductions
  • notice period
  • annual leave entitlement
  • maternity benefits
  • child-care benefits

6. Calculation of payroll related income and statutory payments

  • Takes no-pay leave
  • On reservist training
  • Starts employment after the first day of the month
  • Ceases employment before the end of the month.
  • Payroll statutory contribution
  • Central provident fund ( Ordinary wage and additional wage )
  • Skill development levy
  • Foreign workers levy

7. Payroll Statutory Reporting

  • Auto inclusion scheme of the IRAS
  • Form IR8A
  • Form IR8B
  • Form IR8S
  • Tax clearance of foreign employee who ceases to :
  • work for the employer in Singapore
  • on overseas positing
  • leaves Singapore for any period exceeding three months
  • duration for keeping records

8. Tripartite guidelines to itemised payslips preparation

  • Guide to itemised payslips preparation
  • Category of employees where employers are bound to give payslips

Methodologies

Lecture and case study.

Who should attend?

Human Resource Practitioners, Payroll Administrator, Compensation Specialist

Workshop Registration: Legal aspect of payroll administration and its practical applications

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