When processing payroll for employees, you will see these checkboxes showing up. These small checkboxes are either being checked or unchecked based on the pay item chosen for processing in payroll:
When a specific pay item is chosen for processing in payroll, based on the nature of the pay item, the system will automatically tick the relevant statutory checkboxes required.
Below is a quick summary of what each ticked checkbox means for the pay item amounts being processed:
If CPF is ticked - the system will include the pay item amounts in CPF (including OW & AW) calculations
If Tax is ticked - the system will include the pay item amounts in tax reporting (IR8A, IR21, Appendix 8A, and Appendix 8B forms)
If SDL is ticked - the system will include the calculation for Skills Development Levy (SDL) on the pay item amount
If SHG is ticked - the system will include the calculation for Self-Help Group (SHG) based on the SHG rates you set up for the employee from their Employee’s Profile.
Do I Need to Manually Tick the Statutory Checkboxes?
The checkboxes are automatically checked based on the employee's Immigration Status which is set when creating their profile.
The system uses this information to determine which checkboxes to tick when processing the employee's payroll.
It is important to correctly set up your employees' immigration status before processing their first payroll. This ensures that checkboxes related to their status are correctly marked during processing.
This does not mean that you cannot manually uncheck or check the checkboxes. You are still able to modify these marks as needed for your situation. 🙂