Override Self-Help Group Contributions

Singapore organizations are required to deduct monthly amounts from their employees' wages and remit them to their employees' respective self-help group (SHG) funds. An employee might opt out, or contribute a different amount that is not based on the CPF rates. In these cases, you need to configure the employees' record to override the SHG rate calculations for these employees.

Before You Begin: The employee has been set up in People for SHG contributions. See Set Up Employee Contributions for Singapore.

Opt Out of SHG Contributions

When the employee has obtained approval from their SHG funds to opt out of contributions, update the SHG settings in the employee HR record in People.

To configure the record of an employee who has opted out of SHG contributions:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. In the employee's new tax definition record, locate the opt-in checkbox for the SHG and clear it.
4. For the Mosque Building and MENDAKI Fund (MBMF), your employee might decide to opt out of some components of the fund but not others. You can set up your employee's choice using these options:
   • Select Opt Out MB if your employee contributes to MBMF but has opted out of the mosque building component. Then, if applicable, in MB Stop From Date and MB Stop To Date, you can select how long the employee has chosen to opt out.
   • Select Opt Out MF if your employee contributes to MBMF but has opted out of the MENDAKI funding component. Then, if applicable, in MF Stop From Date and MF Stop To Date, you can select how long the employee has chosen to opt out.
4. Click Save.

Contribute a Fixed or Reduced Amount for SHG

When the employee has obtained approval from their SHG funds to contribute a fixed or a reduced amount, update the SHG settings in the employee HR record in People so that you can enter a fixed amount for the monthly SHG contribution.

To configure a fixed amount for the SHG contribution:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You might need to enter an end date for the currently active tax definition record if it is no longer valid.
3. In the employee's new tax definition record, select the fixed amount option for the SHG:
4. • Fixed Amount for CDAC for Chinese Development Assistance Council fund (CDAC).
   • Fixed Amount for MB for the mosque building component of Mosque Building and MENDAKI Fund (MBMF).
   • Fixed Amount for MF for the MENDAKI funding component of Mosque Building and MENDAKI Fund (MBMF).
   • Fixed Amount for SINDA for the Singapore Indian Development Association (SINDA).
   • Fixed Amount for ECF for the Eurasian Community Fund (ECF).
4. Click Save.
5. Click Payroll > Payroll Elections.
6. Click Add to enter a new start date for this payroll change.
7. In the employee's new payroll election record, select a system deduction code that is appropriate for your employee's SHG. The name of these system deductions follow this format: "VOLUNTARY" followed by the acronym of the SHG. For example, VOLUNTARY CDAC. See Overview of Adding Deduction and Earning Elections.
8. Important: You should only use the system deductions and not any custom deductions that you've created.
8. In Schedule, select how often the contribution is made.
9. Enter a fixed amount in the Parameters section.
10. Click Save.

Contribute an Amount More Than the SHG Rate

When the employee has chosen to contribute more than what is expected towards their SHG fund, update the SHG settings in the employee HR record in People to enter the extra amount.

To configure a larger SHG contribution:

1. Go to People, open the employee profile, and click Payroll > Payroll Elections.
2. Click Add to enter a new start date for this payroll change.
3. In the employee's new payroll election record, select a system deduction code that is appropriate for your employee's SHG. The name of these system deductions follow this format: "VOLUNTARY" followed by the acronym of the SHG. For example, VOLUNTARY CDAC. See Overview of Adding Deduction and Earning Elections.
4. Important: You should only use the system deductions and not any custom deductions that you've created.
4. In Schedule, select how often the contribution is made.
5. In the Parameters section, enter an amount that is the difference between the set monthly rate and the new monthly amount the employee wants to contribute. For example, if the monthly rate is $10 and the employee wishes to contribute $20 each month, enter the $10 difference.
6. Click Save.