Oracle HRMS Singapore

(Basic Setup & Payroll Run Related Procedures)

12.1

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Contents
Introduction .................................................................................................................................................. 4

Creating an Organization .............................................................................................................................. 4

Defining Business Group ............................................................................................................................... 4

Defining GREs/Legal Entities ......................................................................................................................... 5

GREs/Legal Entities: Entering Legal Entity Additional................................................................................... 8

GREs/Legal Entities: Entering Legal Entity IRAS Submission Details ............................................................. 8

GREs/Legal Entities: Entering Multiple CPF Submission Number ................................................................. 8

Payroll Process .............................................................................................................................................. 9

Entering Employee and Assignment Data Related to Payroll Employee Details .......................................... 9

Person Extra Information Types.................................................................................................................. 13

Defining Organizational Payment Method ................................................................................................. 15

Payroll Description ...................................................................................................................................... 16

Assignment Details...................................................................................................................................... 17

Attaching Payment Methods ...................................................................................................................... 18

Creating Element Links for Seeded Elements ............................................................................................. 20

Elements ..................................................................................................................................................... 21

Payroll Process ............................................................................................................................................ 22

Quick Pay Run ............................................................................................................................................. 22

QuickPay Prepayment ................................................................................................................................. 23

QuickPay Results ......................................................................................................................................... 24

Payroll Run .................................................................................................................................................. 25

Prepayments ............................................................................................................................................... 27

Payroll Advice (Singapore) (XML) ................................................................................................................ 27

Sample Pay Advice ...................................................................................................................................... 29

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Multiple Assignment Processing and Reporting ......................................................................................... 30

Processing CPF Contributions using Enhanced RetroPay ........................................................................... 31

Monthly and Year-End Reporting Overview ............................................................................................... 33

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Introduction
This document outlines the configuration required to use functionality for Singapore Localization. Core
Payroll delivers the necessary basic functionality to achieve the Payroll Processing.

For brief description of Payroll Processing provided by core please refer to the following.
Oracle Payroll Processing Management Guide, Release 12.1 (Doc ID 1908533.1)

Creating an Organization

Defining Business Group

The business group represents a country in which your enterprise operates. You create it as an
organization in Oracle HRMS, but it does not represent a specific organization within your enterprise
structure, and you do not include it in your organization hierarchies. A business group enables you to
group and manage data in accordance with the rules and reporting requirements of each country, and to
control access to data.

Use the Organization window to create:

Navigation: Work Structures > Organization Description

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1. Click the organization classification for which you want to enter additional information.
2. Choose the Others button to open the Additional Organization Information window.

Following information needs to be defined under the Business Group classification:

Defining GREs/Legal Entities

The legal Employer is represented by the Legal Entity classification for an Organization. This represents
the designated legal employer for all employment-related activities.

Navigation: Work Structures > Organization Description

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Navigation: Work Structures >Organization >Description > GRE / Legal Entity >
Others

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Enter legal employer details

Enter information about the legal employer, including the legal name and Payer ID,
CPF Submission number recognized by the CPF Authority, and other CPF details.

* Enter the IRAS income tax number.

* Enter the details of the IR21 contact personnel.

Select one of the following methods in the CPF Capping Method field:

Note: For an employee with multiple assignments with different legal entities, the monthly capping for
CPF Employee Ordinary contribution is applied to all assignments instead of individual assignment.

• No Self Adjust - calculates the AW (Additional Wages) capping after calculating ordinary wages and
additional wages for the whole year. You have to submit the ES-CAPR form to the CPF board to claim
CPF refund, before the end of 6 months in the new financial year. To view employees who have overpaid
the CPF, run the AW Recalculation report, after the end of the year.

• Self Adjust - calculates the AW capping using the previous year's ordinary wages. To view employees
who have overpaid the CPF, run the AW Recalculation report, after the end of the year.

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• Self Adjust in Last Period of Calendar Year - calculates the AW capping using the actual current year
ordinary wages, if you pay additional wages only during or after December payroll.

• Self Adjust – Projected - calculates Ordinary Earnings for AW Capping as current year's paid Ordinary
Earnings and current month's Ordinary Earnings as projected for future months.

Optionally, enter further information about the legal entity, including authorized representative information.
• Select the CPF Proration Method if you want the application to calculate CPF using Calendar days or
working days/custom days. The default value is calendar days.

GREs/Legal Entities: Entering Legal Entity Additional

You use this window to record the contact information of the authorized person at the
IRAS for a legal employer.

GREs/Legal Entities: Entering Legal Entity IRAS Submission

Details
You use this window to record the IRAS archive information submitted to the IRAS for
a legal employer.

GREs/Legal Entities: Entering Multiple CPF Submission Number

You use this window to record multiple CPF Submission numbers for a legal employer.

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Payroll Process

Entering Employee and Assignment Data Related to Payroll

Employee Details
Navigation > People Enter and Maintain

An employee’s date of birth should be entered in order to assign a Payroll to the employee.

Entering Identification Information

Enter the person's identification information in the Identification region:

1. Enter the National Registration Identity Card (NRIC) number for Singaporean nationals or the Foreign
Identity Number (FIN) for non-nationals.

2. If the first character of the NRIC number is S or T (indicating a Singaporean citizen), select the colour
of the card (blue or pink).

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Following details should be entered In the Further Personal Info tab

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To enter work permit information:

Select the person's employment status in the Permit Type field. This is mandatory
for all employees, even if the person is a Singapore citizen.
Enter further details depending on the permit type that you entered. You can record
the permit category, only if you have selected S Pass as the Permit Type.

To enter CPF and tax information:

Enter the person's CPF and tax details and, for married female employees, you can
enter their husband's income tax number.

The CPF category determines how an employee's CPF contributions are calculated.

If you select CPF Excluded, no CPF payments will be calculated for this employee.

For employees covered by the 1984 Frozen CPF scheme, select one of the following
categories:
• Public Sector Pensionable / Statutory Board
• Public Sector Non Pensionable / Ministeries
• Public Sector Pensionable / Ministeries
• Public Sector Non Pensionable / Statutory Board
Adjust the CPF predefined formulas like Employer CPF Ordinary Earnings,
Employer CPF Additional Earnings, Employee CPF Ordinary Earnings and
Employee CPF Additional earnings by using the CPF Contributions element from
the Element window.
3. Select the Payees ID Type to identify an employee and for IRAS reporting.

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Person Extra Information Types
Navigation > People > Enter and Maintain >others >Extra information
You can define as many Extra Information Types as you require to hold information
about people. There is also some predefined person EITs.

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Following are the details for above the EITs

• Benefits in Kind - holds detailed information about any benefits-in-kind the employer provides such as
house accommodation, car benefits, long-service reward.

• If employees receive any benefits-in-kind and want to report within A8A file,then you must feed
the balance IR8A_MOA_351 and enter the required information within the Benefits in Kind EIT.

• If employees receive any benefits-in-kind, but do not want to report within A8A file, then you must
feed only the balance IR8A_MOA_351. You do not enter any information within the Benefits in
Kind EIT.

• If employees do not receive any benefits-in-kind, then you need not feed the balance
R8A_MOA_351 nor enter any values in the Benefits in Kind EIT.

• Furniture Expenses - holds the expenses details for the number of units of furniture
for employees. Users can no longer record any information from 2014.

• Hotel Accommodation/Home Leave Expenses - holds information relating to

accommodation and leave expenses provided to employees and their family

• IR21 Cessation Information - holds information required for IR21 reporting such as
the arrival and departure of the employee in Singapore, reason for leaving, information on any monies
withheld, the spouse and their employment information and date of their marriage

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• IR21A Cessation Information - holds information relating to the premises the employer provides for
employees such as the date on which the employee occupied
or left the premises, and if, on a sharing basis
• IR21 Processing Dates - records the date on which the IR21 was processed.
The following information types are used by the IRASLine Archive and validation process.

• IR8A Indicators - information relating to Section 45, whether the employee's income tax liability was
borne by their employer, and whether the IR8S is applicable to this 1 and only employee, if income is
exempt or remission income,and if, there is approval from IRAS and the date of approval.
Note: You must set the IR8S Applicable flag to Yes to include this employee when you run the IR8S File
process.

• IRAS Additional Information - for any other IRAS-related information.

• Further Details - information relating to retirement funds, designated pension, and name of bank.

All of these extra information types are used for your IRAS returns.

• Stock Option Exercise Information - details of any stock options exercised, including the stock option
type, company grant information, exercise price, market value at time of exercise, date of exercise, and
number of shares acquired.
Note: Before entering any Stock Option Exercise Information, you must ensure the employee has been
granted stock options first.

• Stock Option Grant Information - details of any stock options granted for the assignment, the type,
including the current market value and the number of stock options.

Defining Organizational Payment Method

Organizational payment method is the way of paying the employees. You can define multiple payment
methods for the same type. For example, you might have different source bank accounts for payments.

Enter a name for the payment method, and select the type that has been predefined for your country, for
example, there is a predefined Direct Deposit type for Singapore.

You can create as many payment methods for each type as you require. For example, if you have
different source bank accounts for different payrolls, you must create separate payment methods.

Navigation: Payroll > Payment Methods

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Payroll Description
Navigation: Payroll > Payment Methods

Following information needs to entered in the Payroll Description screen:

Name –
Period Type –
Valid Payment Methods – Direct deposit, Cash, Cheque etc

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Assignment Details
Navigation > People Enter and Maintain > Assignment

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Following information needs to entered in the assignment screen:

Position – when the position is selected, the organization and the job linked to the position are
automatically selected

Status – The assignment status by default is Active assignment. This should not be changed

Payroll – Select the correct payroll name.

Salary Basis – Under the Salary Information tab, enter the Salary Basis. Only a single salary basis will be
available, which should be entered here.

Under the Statutory Information tab, Legal Entity needs to be entered:

Attaching Payment Methods

Navigation: People > Enter and Maintain > Assignment > Others > Pay Method
For making the employee salary payments, corresponding pay methods for the individuals need to be
assigned in the Pay Method window. Only those payment methods will be available for allocation, which
have been defined as the valid payment methods for the Payroll attached to the employee assignment.

Enter the Priority as 1 and Percentage 100. For multiple payment types for an employee, the percentage
should be split correctly.
For Direct Deposit Payment type, the Bank Details of an Employee are mandatory.
Enter the Bank Name, Account Type, Bank Name and Branch Name.

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Creating Element Links for Seeded Elements
Navigation : Total Compensation > Basic > Link

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Elements

Primary Classifications for Singapore Legislation

Information Information elements can be set up for the following purposes:
representing information items that are not used in payroll
processing, holding information for use in other elements and
triggering the processing of other elements. Information
elements in Singapore may include benefits-in-kind.
Non-Payroll Payments are for reimbursements, for example,
third-party payments by cash or cheque.

Ordinary Earnings Ordinary Earnings elements represent most payments made to

an employee. These payments are usually subject to deductions
of CPF contributions and are normally processed in the regular
payroll run each period.

Additional Earnings Additional earnings are for bonuses and allowances.

Statutory Deductions Statutory deduction elements are for mandatory CPF

deductions and Community Fund deductions

Involuntary Deductions Involuntary Deductions are for Community Fund deductions

that are calculated according to the Community Fund Category
to which an employee belongs.

Voluntary Deductions Voluntary Deductions represent deductions such as

Community Chest/Share deductions or voluntary CPF
deductions, that the employee authorizes the employer to make
on their behalf before tax.

Employer Liabilities Employer Liability elements represent employer payments,

such as the Skills Development Fund Levy and the Foreign
Workers Levy.

Balance Initialization Balance initialization elements are used specifically for the
loading of initial values into balances. You would mainly use
these elements when transferring data from another payroll
system.

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Payroll Process

Processing of the Payroll can be done in two ways

Quick Pay Run: Quick Pay is used to process the payroll for one employee.

Normal Payroll Run: This is the Standard process for running the Payroll for all the employees.
Most of the times Normal Payroll run is used for processing the Payroll.

Pre requisites for the Payroll Run.

Reconcile all the manual elements entered.
Define the Assignment Set for the exclusion of employees if needed.
Define any Element Set if needed.

Quick Pay Run

Navigation: People >Enter and Maintain > Assignment > Others > Quick Pay

Open the QuickPay window and enter the following fields:

Date Paid
Date Earned – Based on the dates entered, the Period field will be automatically populated

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The system prompts to save the QuickPay definition. Select ‘OK‘. The payroll will be processed for a
single employee.

QuickPay Prepayment
After the QuickPay run is completed, the prepayments button gets enabled. Prepayment process picks up
the payment method assigned to an employee and consolidates corresponding payment methods for the
payments run.

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QuickPay Results
The results of a quick pay run can be viewed by clicking on the View results button on the same window.

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Payroll Run
Payroll Run is a concurrent request to be submitted from the Standard request submit menu.

Navigation: Process and Reports > Submit Process and Reports

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Select Single Request
Select the Payroll Run program from the list of values attached to Name field.

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Prepayments
Prepayment is a concurrent request to be submitted from the Standard request submit menu.
Navigation: Process and Reports Submit Process and Reports
Select Single Request
Select PrePayments process from the list of values provided

PrePayments process expects 4 parameters

Payroll: Name of the Payroll for which the PrePayment process has to be run
Consolidation Set: After choosing the Payroll system populates the Business Group Name Leaving this
value as defaulted
Start Date: Date From
End Date: Date To
Payment Method Override: If selected, for the entire payroll run the payment methods for all the
employees will be overridden by the payment method specified.

Payroll Advice (Singapore) (XML)

Pay Advice (Singapore) (XML) is a concurrent request to be submitted from the Standard request
submit menu.
Navigation: Process and Reports > Submit Process and Reports
Select Single Request
Select Pay Advice (Singapore) (XML) process from the list of values provided
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Sample Pay Advice

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Multiple Assignment Processing and Reporting

Multiple Assignment Processing

When Oracle HRMS for Singapore processes statutory deductions or contributions, it

calculates the month-to-date balances for each legal entity. For example, if a person has
two assignments within the same legal entity and has already paid their Community
Deductions in the first assignment, then only the difference is deducted (according to
rates tables) for the second assignment.
A cap is applied at the legal entity level, although an exception to this is the second
Community Fund contribution. This is set up at assignment level.

Multiple Assignment Reporting

All payroll reporting is performed at legal entity level. Therefore:

• If you are processing an employee with multiple assignments in different legal
entities, you must submit a report for each of those legal entities. Each report must
show the balances for that legal entity.
• If you are processing an employee with multiple assignments in one legal entity,
you only need to submit one report. This report includes a total of the balances for
each assignment.

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Processing CPF Contributions using Enhanced RetroPay
Central Provident Fund (CPF) contributions are made by both employees and Employers, and are
submitted to the CPF Board.

The amount of CPF to be paid, depends on the employee's salary, age and Work Authority category. CPF
contributions are a deduction from the employee's earnings.

Oracle HRMS for Singapore supports retrospective payment of earnings. The type of earnings being
processed determines how CPF deductions are calculated for retrospective earnings.

Oracle HRMS for Singapore supports retrospective payment of earnings. The type of earnings being
processed determines how CPF deductions are calculated for retrospective earnings.

CPF RetroPay Methods

Two methods have been defined for processing retrospective payments and CPF contributions:

Method A

Calculates retrospective CPF contributions in the current payment period. The Ordinary Wage (OW) is
based on the paid period (since CPF is liable in the current period).

Method B

Calculates retrospective CPF contributions at the time of the retrospective earning. The Additional Wage
(AW) capping is based on the amounts in the earned periods.

You can decide how you want to process retrospective payments, and have the option of using either
Method A, or Method B.

The Enhanced RetroPay process does not require you to attach any formula nor define any element sets.

Navigation: Total Compensation >Basic> Element Description> Recalculation tab > Retropay
Component

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A few points to keep in mind while processing retro payments: Feed the following balances if you want to
include the retro elements in the CPF calculations

• CPF Ordinary Earnings Eligible Comp

• CPF Additional Earnings Eligible Comp

Feed the following balances into the Retro elements if you want to include these
retro elements in the Community Fund calculation.

• SINDA Eligible Comp

• ECF Eligible Comp
• MBMF Eligible Comp
• SDL Eligible Comp
• CDAC Eligible Comp

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Monthly and Year-End Reporting Overview

Monthly Reporting
CPFLine Report - shows employer/employee CPF deductions and other contributions
for which the CPF Board is a collecting agent, for example, Community Fund
contributions and the Skills Development Levy.

Year-End Reporting
• IR8A - Return of Employee's Remuneration. Shows employees' salary, bonus or
other income.
• A8B - Details of gains or profits from shares exercised.
• IR8S - Employer's/Employee's Contributions to CPF or Other Approved Pension or
Provident Fund. Shows employees' and employers' earnings.
• Appendix 8A A8A - Value of Benefits-in-Kind. Shows total of any benefits-in-kind
paid to employees.

At the end of every tax year, an employee will be included in the IR8A magnetic tape,
regardless of whether they are still an active employee, or a terminated employee. The
only exception is for employees whose IR21 (Earnings Reporting for Non-Resident
Employees who will be leaving Singapore) has been run. Employees who do not have
payroll processes, or have earnings information with a zero value, will also be excluded
from the IR8A process.

Following Documents provide the detailed information on above Reporting Procedures.

Oracle HRMS for Singapore Supplement (Doc ID 316284.1)

Refer Section : Payroll Statutory Deductions and Reporting

Singapore - EOY - Oracle HRMS Process to Report Employees’ Yearly Remuneration - Form IR8A/S and
Appendix 8A/S for Year 2008 (Assessment Year 2009) (Doc ID 259259.1)

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