Introduction
Creating Voluntary Contributions in the system is one way for the company to deduct certain amounts from the employer or employee’s salary.
Before doing the payrun, the admin must add the Voluntary contributions to each person on the Update Pay Information page. To add/create voluntary contributions, please follow the step below:
How to add Voluntary Contributions
The Payroll Admin can use the system to record any Voluntary Contributions made beyond the standard statutory amounts. For example, if there are additional contributions on top of the usual CPF, CDAC, SDL, SINDA, ECF, or MBMF contributions, these can be entered as voluntary contributions for the extra amount.
If you add a voluntary contribution, it will also show on the pay elements page on payroll.
The difference between creating a pay element and adding voluntary contribution is that for voluntary contribution, you can indicate if the contribution is from the employee or the employer.
Step 1: Head over to .
Step 2: Choose .
Step 3: Click on tab at the top.
Step 4: Choose sub-tab. This is where the admin can create a voluntary contribution.
Step 5: Complete the Element ID, Element Name, and choose whether it is an Employee or Employer Contribution.
Step 6: Click on .
This section lists all the voluntary contributions that can be added to an employee’s pay details before processing the pay run.
How to add Voluntary Contributions to the Pay Information Page of a Staff
Follow the steps below to add voluntary contributions to an employee’s pay details before running the payroll.
Step 1: Go to the module.
Step 2: Click on .
Step 3: Under the tab, locate the name of the staff and click the pencil icon under the Actions column to open the Update Pay Information page.
Step 4: Scroll down and look for the Other Voluntary Contributions section located below the Working Hours and OT section.
Click the dropdown arrow to view the available details.
Step 5: Choose the Contribution Type — either Employee Contribution or Employer Contribution.
- If you select Employee Contribution, it will appear as a deduction pay element and will be visible in the employee’s payslip, indicating that the contribution is deducted from their salary.
- If you select Employer Contribution, it will not appear as a deduction but will be shown at the bottom part of the payslip instead.
Step 6: Next, select the Contribution Name from the list. The options shown here are based on the voluntary contribution setup you’ve created in the Configuration section.
Step 7: Click on the Add button. Once added, a table will appear at the bottom of the section displaying the Contribution Name and Type you have selected.
Step 8: Enter the Amount for the contribution.
Step 9: Click Save to apply the changes and you will get a confirmation on the upper right part of the screen.
Once the voluntary contributions for either the employer or employee have been saved, you may run the payroll as normal. The contributions will appear in the payslip after it has been generated.
- The Employee Contribution appears under the Deduction side in the Payslip.
- The Employer Contribution appears at the bottom part of the payslip, following the Contribution Name you selected.
On the CPF file, the added voluntary contributions will not show. This means that the company must pay the contributions directly to CPF.
Lastly, the bank file will consider the Total Net Pay of the employee. This means that the Voluntary Contributions are considered and taken against the salary of the employee.