Even though most, if not all, of the initial organizational and payroll configurations are completed by your implementation consultant, the following information helps you understand how your Singapore Payroll is set up.
Singapore Legal Entity Setup for Payroll
Legal entities are created by entering your organization's tax and banking information in Org Setup > Org Payroll Setup > Legal Entity. If you logged in with the English (United Kingdom) culture setting, the Legal Entity tab is called Organisation. Legal entities serve two functions:
- Provide accurate payroll reporting to the Singapore tax authorities and other government agencies
- Identify the bank account that the organization uses to make direct deposit payments to employees
On the Legal Entity screen, your organization's information is entered in the following sub-tabs: the Address tab, Customer Funding Identifiers tab and the Payroll Parameters tab. Because Singapore employers aren’t required to withhold wages for tax purposes, there is no need to enter any information in the Tax Authorities tab.
The identification number issued to organizations operating in Singapore, such as the Unique Entity Number (UEN), should be entered as the legal entity's Federal/Business ID Number. This number needs to match the setting in Organizational ID Type in the Payroll Parameters tab.
The Customer Funding Identifiers tab is where you set up the bank account used to pay employees. For more information about funding for Singapore payroll, see Configure the Funding Bank Account for Singapore Payroll in the Dayforce Implementation Guide.
The Payroll Parameters tab records information that is required to remit employer and employee contributions, such as the CSN. See The Payroll Parameters Tab in the Dayforce Implementation Guide.
The CPF Submission Number (CSN) is used to make your contributions to the Central Provident Fund (CPF) Board. The CSN is included in the CPF submission file that you generate each month in Dayforce to make your monthly CPF contributions. Dayforce supports CSNs for both mandatory and voluntary CPF contributions.
You must enter the CSN in Dayforce at the legal entity level in the Payroll Parameters tab in Org Setup > Org Payroll Setup > Legal Entity. In addition, if your organization uses multiple CSNs, you can report multiple CPF contributions by pay group by entering these additional CSNs in the Payroll Properties tab in Pay Setup > Pay Group for each pay group.
Singapore Pay Groups
Pay groups are a way to group employees with the same pay period. To pay employees, they must be associated with a pay group. Pay groups are set up in Pay Setup > Pay Group, with the payroll country set as Singapore.
In a Singapore pay group, payroll can still be calculated for employees with a primary address outside of Singapore.
For more information about how Singapore payroll is funded, see Configure the Funding Bank Account for Singapore Payroll.
Singapore Earnings and Deductions
The Singapore Payroll feature records one-time earnings (such as one-time bonuses or commissions) and generated earnings that are calculated during the payroll process.
Because Singapore employers aren’t required to withhold wages for tax purposes, the statutory deductions are employer and employee contributions to CPF, Self-Help Groups, and various government levies. You can enter memo deductions, pre-statutory deductions, and post-statutory deductions in Dayforce.
- A pre-statutory deduction is a deduction that is taken before the statutory deductions are calculated and applied.
- A post-statutory deduction is a deduction that is taken after statutory deductions are calculated and applied.
Statutory deductions are calculated automatically based on the tax definitions in employee records and also, in some cases, by the deductions set up as payroll elections. See Set Up Employee Contributions for Singapore.
Each earning and deduction in Payroll Setup > Earnings and Deductions is set up by your implementation consultant, based on a tax compliance rule that defines how statutory contributions are applied to an employee's wages in Singapore. There are also system deductions for Singapore payroll that are available by default in Dayforce.
For more information about how to create a generated earning, see Create Generated Earning Definitions in the Dayforce Implementation Guide.
For more information about how to set up a deduction, see Create Deductions or Configure Deductions in the Dayforce Implementation Guide.
As a payroll administrator, you might need to maintain these earnings and deductions in Payroll Setup > Earnings and Deductions in the following ways:
- Create new earnings or deductions.
- Update the deduction rate in the Parameters tab.
- Assign the appropriate earnings and deductions to a pay group, or to a new employee in their People record.