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GP SGP : Retro Setup Change to Include Retro Wages in The Calculation of Base Amount On Which CDAC, SINDA, ECF, MBMF and SDL Must Be Calculated In The Current Month (Doc ID 1955661.1)

Last updated on FEBRUARY 06, 2019

Applies to:

PeopleSoft Enterprise HCM Global Payroll Singapore - Version 9 to 9.1 [Release 9]
Information in this document applies to any platform.

Details

ISSUE 1. SDL CALCULATION DOES NOT INCLUDE RETRO WAGE

A recent clarification obtained from the Singapore Workforce Development Agency (WDA) indicated that Skill Development Levy (SDL) should be calculated on the combined eligible gross earnings of the current   month inclusive of retrospective payments/ salary adjustments.

Currently, the system calculates SDL for the current earnings and retro earnings separately. After this change, the SDL will be calculated on the overall eligible gross for the current month inclusive of retro. SDL will not be forwarded as a delta from prior month separately. If the combined gross earnings for the month exceed the maximum earnings ceiling for SDL of SGD 4,500, then the SDL calculation will be limited to that extent. In other words, the SDL will not exceed SGD 11.25.

The above rule applies for other community deductions or Self help group funds (SHGs) like CDAC, SINDA, ECF and MBMF as clarified by the CPF Board.

ISSUE 2. SDL IS TIED TO CPF WAGES BUT EARNINGS THAT CONTRIBTE TO SDL DONT NECESARILY TO CPF

A new Segment accumulator SDL TOT WG SEG is being delivered to calculate the base amount on which SDL must be calculated. A new accumulator is being delivered, as earnings on which SDL is payable, need not necessarily contribute to CPF.

Customers are required to configure the Segment accumulator SDL TOT WG SEG to include/exclude such earnings for calculating the base amount for SDL calculation.

 

Bug Release Subject
18815793 9.1 SDL CALCULATION FOR TRANSFER CASE IS WRONG
18777918 9 SGP9: INCORRECT STATUTORY & ETHNIC FUNDS FOR MID-MONTH PAY ENTITY TRANSFER

This Patch fix should be applied by customers before the Jan-2015 (start of fiscal year) payroll processing as the Retro Process Override setup ‘SGP RETRO’ has been changed effective 01st January 2015.

After this change, any retro triggered for 2014 pay periods while processing 2015 calendars could cause the delta amounts for CDAC/SINDA/ECF/MBMF/SDL to be forwarded from 2014 pay periods into 2015 calendars. However, these delta amounts should not be processed with the current payroll.

A manual adjustment is required to offset the delta amounts for CDAC/SINDA/ECF/MBMF/SDL forwarded from 2014 pay periods into 2015 calendars. This will ensure the delta generated from the prior period is negated and the correct SDL value from the current month will be reported.

 

Actions

 You need to apply the critical P1 patch / GP Update whenever their legislative fixes are posted.

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