Success In the Payroll Management Business

Vincent Gabriel

Description

This book was originally written as a guide to payroll clerks, executives and managers to be used together with payroll software, some thirty years ago, as part of the efforts of a company to get uses for its software. The book achieved its aims.

Payroll management is now only a very small part of the Human Resource Capital Department. Payroll in fact is being outsourced to those who want to work from home. It is to this group of self employed that this book is addressed to.

Sujets

• Entrepreneuriat
• Business
• Economics
• Employabilité, métiers et formations
• Home-Based Businesses

Informations

• Publié par: eBookIt.com
• Date de parution: 21 octobre 2013
• Nombre de lectures: 0
• EAN13: 9789810777548
• Langue: English

Extrait

Success In The Payroll Management Business
Vincent A. Gabriel
Aug 2013
Published And Distributed Rank Books
ISBN 978-981-07-7754-8 Copyright © 2013 Vincent Gabriel
Typeset and Cover Design: Rank Books
All rights reserved. No part of this publication may be reproduced or copied in any form or by any means – graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems – without written permission of the copyright holder.
Condition of Sale This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the copyright holder’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser.
Disclaimer The author disclaim all liability and responsibility for loss caused to any person by any act or omission to act directly or indirectly as a result of material contained in this book.
Printed in Singapore
Preface
This book was originally written as a guide to payroll clerks, executives and managers to be used together with payroll software, some thirty years ago, as part of the efforts of a company to get uses for its software. The book achieved its aims.
Payroll management is now only a very small part of the Human Resource Capital Department.
Payroll in fact is being outsourced to those who want to work from home. It is to this group of self employed that this book is addressed to.
About the author
Vincent A. Gabriel has a wide experience in the wages/expression aspects of human resource management.
He has written a “Guide to the Employment Act” which has gone into two editions. He has authored the Monthly Variable Component of the Essential Employment Guide.
He has taught the laws related to the employment of foreigners for a number of years
About the approach
The most remarkable change in the handling of the operational details of the HR department is in payroll management.
In the midst of high costs firms are outsourcing this function to their former employees or equally skilled professionals. For my part I want to thank the many HR professionals who have helped me put this book together.
Chapter One
Is This Type Of Self-Employment Something I Want?

Synopsis
•  What does the Payroll Management Business involve
•  What it means for me
Tutorial: The employment contract                   The “For Service” contract
Introduction
The fierce competition has driven prices down and to survive many organisations outsource their non-core activities to people like you. This book is written to help you get a foothold in the billion dollar business of outsourcing but we will focus only on payroll management that is outsourced.
Core of the Payroll Management Business (PMB)
In addition organisations expect you to be reliable. Hence in each chapter is included a tutorial to help you with some depth on the current HR practice.
Technology of the PMB
The technology referred to, frees the HR team from the routine tasks and gives time to the HR executive to provide the personal touch to the HR events like attending to grievances or ‘perceived injustices’.
Confidentiality
Much of the work of HR especially in the area of payroll is still considered confidential and the HR team must learn to respect every worker’s private space especially in payroll matters. Look at the case study below and notice what can go wrong when confidential information is circulated.

Case Study
At a recent interview my interviewer told me that she had obtained my CV from her friend, a HR manager in another company. I was very surprised. Is the passing of confidential document without the owners’ consent ethical?
Ms Shocked
Response
Good HR practice requires the CVs to treated as confidential documents the way their owners want them to be.
Perhaps the HR department of the other company wanted to do the applicant a favour by passing her details to another prospective employer. If this was so the HR person should have got the consent of the owner of the CV.
Each job application has the terms ‘write in confidence’ the implied legal relationship is that confidentiality would be maintained. Hence the HR person’s circulation of the CV to another person is a direct breach of this confidence.
You are expected to be on-time since wage and salaries must be paid by the 7 th of the following month. (This is provided by law)
You have to harness electronic communications to get the data you need to prepare the payroll on time.
Tutorial: Chapter One
Synopsis

1)   What is the Employment Contract?
2)   Characteristics of Contracts of Service or the Employment Contract.
3)   Check list of items that should be included in the employment contract
4)   Implications of the Employment Contract
5)   Summary
Introduction
The payment of wages in Singapore is governed by the terms of employment between the employer and employee. Employers give an employee whom they want to employ an Employment Contract duly signed.
What is the Employment Contract?
Employment Contract
Simply a letter for contract of service and the employer agrees to accept the services done by another person (called the EMPLOYEE) and to pay the employee a SALARY.
Other examples of Employment Contract
Some employers choose to call their employment contract.

1)   letter of employment
2)   employment agreement
3)   apprentice contract
Characteristics of Contract of Services
T ermination/notice period is provided for both employer and employee.
Entitlements to employee e.g. medical
                            self improvement course                             stock options
A greement to pay a sum of money (wages, salary) for the performance of services.
R esponsibilities of the employee and the designation of duties.
Contracts of Services Characteristics
T
E
A
R
Checklist of Items
Terms that should be included in the Employment Contract that affects the payroll. To avoid miscommunication between the employer and the employee the following should ne included:

1)   Date of commencement of employment
2)   Probationary period and the terms during and after probation
3)   Salary of the employee
4)   Annual increment
5)   Any bonus
6)   Other forms of allowances
7)   Hours of work
8)   Method of working
9)   Any overtime pay
10) Other types of incentive payment e.g. attendance bonus
Implications of an Employment Contract
With the employment contract the employer has the following rights and obligations:
•  The employee must give notice if he wishes to stop working.
Example 1 Mohan has been working in a restaurant for 6 months. He has accepted a higher paying job elsewhere. Mohan has to give his employer a notice period of one month as stated in his employment contract. He submits his letter on the 8 th of May and his last day is 7 th June. Payroll Guide: Salary is paid up to the last day of service, 7 th June.
Example 1 Salary to be paid up to and inclusive of the last day of work
•  The employee must carry out the duties that are assigned to him.
Example 2 John Pereira is employed as a driver of the company vehicles which includes saloon cars and station wagons. The company contracts off its delivery service to a third party. The company wants to keep John Pereira because his work performances has been satisfactory. Can the company assign John to drive the most senior manager’s Mercedes? Patrol Guide: John’s salary continues at the same rate whether he drives saloon cars or whether he drives just one Mercedes limousine.
Example 2 Salary continues if employee carries out the duties assigned to him
•  The employee must be diligent and honest.
Example 3 Tommy Tan is an excellent technician of Mercedes cars and his employer, a motor service agency has assigned him the task of scheduling the cars of valuable clients for service. Tommy accepts ‘under the table’ money and changes the schedules so that Mercedes cars of favoured clients are given priority. Tommy Tan has no legal right to these payments, even if clients give them to him without him asking for them.
Example 3 Extra payments are not the legal right of an employee
Contract of Service
Differences between a Contract OF Service and a Contract FOR Service.
A Contract of Service is an agreement of EMPLOYMENT.
A Contract For Service is an agreement made between 2 parties. One party may be an organisation and the other party, an individual who undertakes to perform a job, example paint the external walls of a building. The individual is not an employee as defined by the Employment Act.
An excellent example is YOU. You take on the outsourced job of payroll management. You are not an employee. You employ yourself.
If a dispute arises and the organisation fails to pay the individual, then the parties may refer their dispute to the SMALL CLAIMS COURT.
Example 4 The HR department wishing to provide refreshment to its employees during the morning coffee and the afternoon tea breaks contracts with Madam Lim Ah Soh. She is given a contract for service.
Example 4 Contractors for services are not employees and are not entitled to benefits given to employees
Madam Lim Ah Soh works very hard and provides drinks and food of a high quality. She puts in a full day of work from 9.30am when she comes in to make the coffee till 3.00pm when after serving the last cup of tea, she cleans the pantry thoroughly. As a result of her hard work, she is now asking for salary increase. She has been paid a flat fee of $2200 to prepare food and drinks for 52 employees. Can she claim an increase in salary? ANSWER: No. From the start she was given a contract for service so she is NOT AN employee but a contractor for services.
Summary of Tutorial
A contract of employment is expected and should include
1)   Date of commencement
2)   Ter