Talenox now supports multi-currency payroll processing for your employees! This feature will come in handy for companies who have employees that wish to be paid out in different currencies.
This article will be highlighting the following:
Steps on how to enable the settings for multi-currency processing in the system
Each step of payroll processing with multi-currency
Viewing multi-currency payslips and payroll reports
Enabling Multi-Currency Settings in Talenox
There are two settings that you will have to enable to ensure that multi-currency will be calculated for your employees in payroll and payslips:
1) Enable the "Currency Conversion Settings" option under the Company Details page
Head to Profiles > Company Details > Payroll Details > Currency Conversion Settings, and select the "Enabled" option to activate multi-currency in payroll processing.
2) Add your employees' preferred currency under their Job Cards in the system
Head to your employee's profile and under their Current Job Details > Currency, you'll be able to select the currency your employee would like to their salaries to be paid out by.
Note: The currency selected will also be presented in payslips accordingly.
Processing Payroll with Multiple Currencies
The steps to processing payroll in Talenox will essentially be the same. However, the currency and rates shown in the system can be adjusted as needed.
Take a look below at the differences in payroll processing at each step of the way:
1) Step 3 - Select Pay Item
Each pay item type will now be showing in the employee's preferred currency stated in their Job Details page:
2) Step 4 - View Summary
The Summary page will show the respective currencies and the total amounts for each - laid out clearly:
3) Month Total page - Payroll Summary tab
The payroll summary tab will be broken up and presented according to the currencies paid out to each employee.
You can choose to toggle between displaying Singapore Dollar (SGD) or opt to display the employee's preferred currencies instead. You'll just need to toggle between the viewing options.
There is also the option to "Edit Rates". This allows you to adjust the currency conversion rates for each specific currency used in the system.
By default, we utilise rates from Fixer if you do not manually customise the currency conversion rates in Talenox in the Month Total page.
4) Month Total page - CPF Summary tab
The CPF Summary will be calculated and displayed according to the SGD.
Statutory contributions are calculated for employees based on the conversion rates under "Edit Rates" section before being deducted from employee salaries accordingly.
This ensures accuracy in calculation for an employee's statutory contribution, even if employees want their salaries to be paid out in a foreign currency.
Viewing Multi-Currency Payslips and Payroll Reports
Employee salaries and deductions will be displayed in the employee's preferred choice of currency.
Statutory Funds will be displayed in SGD for more accurate presentation to the employee.
Payroll Reports downloaded from Talenox will be generated in a zip. file that will contain several excel spreadsheets.
These spreadsheets are generated according to:
Employee's preferred currency
Conversions from foreign currency to SGD
For example, if a company has a mixture of employees who are paid in either USD or SGD, the payroll reports generated would be as such:
Payroll Report only for employees paid in SGD
Payroll Report only for employees paid in USD
Payroll Report for employees paid in USD, converted to SGD
NOTE: We currently do not support multi-currency bank files at the moment, so if you do export the bank file for an employee who is paid in a foreign currency, the bank file will reflect the payment in SGD automatically.
For disbursement of salary in foreign currency, this would have to be arranged for outside of Talenox for the time being.
Hope this is clear! :)