Singapore: Generating payroll for New Employees and Terminated Employees

Before generating the first payroll for new hires or the last one for terminated employees there are some special settings that you need to set up otherwise the payroll will be incorrect.

 

  1. Adjust the Contract Date

    – The contract date should be updated to the correct hired date and/or termination date.
    – You can update the contract of the employee by going to the employee profile and clicking on Contracts.
    SG contract hired date

    SG contract termination date

     

  2. Generating Payroll

    – When generating payroll for new hired employees or terminated employees, the pay period must always be the whole month or period.

     

    .

    Example for Newly Hired Employees:

    – If the regular pay period is from the 1st of the month to the last day of the month.
    – And the employee is hired and starts on December 15.
    When generating the payroll, they should be included for Dec 1-31 pay period and NOT create a special Dec 15-Dec 31 one for them.

    The following is a screenshot of a payslip for a new employee that started on the 15th of December.
    The pay period is set from Dec 1-31

    sg payroll 1

    sg payslip for new hires

     


    And here’s a screenshot of the same employee but with the payroll period set to December 15-31

    sg payroll 2

    sg payslip 2

    On the second example you can see that the employee was paid the full month salary (which is probably not the intended outcome).

    The reason why he is being paid on the full monthly salary is because the system is thinking that the employee has worked the full contract period (from December 15-31). Where as if the pay period is set to December 1-31 and the contract that the employee has starts on December 15, the system will automatically deduct the days he didn’t work (1-15).


    .

    Example for Terminated Employees

    – If the regular pay period is from the 1st of the month to the last day of the month.
    – And the employee was terminated on January 10th.
    When generating the payroll, they should be included on the January 1-31st pay period and NOT create a separate
    January 1-10th pay period for them.

    Here’s a screenshot of a payslip of an employee terminated on the 10th with the pay period set from Jan 1-31, 2016

    sg payroll 3

     

    sg payslip 3

    And here’s a screenshot of the same employee terminated, but with the payroll period set to January 1-10th:

    sg payrolls 4

    sg payslips 4

    Same as with the new hires, the reason why the employee is being paid on the full monthly salary is because the system is thinking that the employee has worked the full contract period (from January 1-10th). Where as if the pay period is set to January 1-31 and the contract of the employee ended on January 10th, it will automatically deduct the days he didn’t work.

     

 

If you have any questions, feel free to email support@payrollhero.com

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