Contents of this article apply to the following users
Tier: PayrollAny Users
Product: Payroll
Platform: Web
Access Level: Owner
Disclaimer
It's important to understand that splitting employee salaries across entities solely to meet foreign worker quota requirements is strictly prohibited. This is an abuse of the rules and you may be investigated by MoM for breach of work pass regulations.
As a company, StaffAny will advise customers to be compliant to MoM regulations. For more details on our terms and conditions of use, please refer here.
If you have this requirement in your business and need to set this up in our system, here is how you can do it.
Managing payroll for staff that is registered to 2 entities can get messy. However, with StaffAny's 1 Employee 2 Entities feature you can manage to run in the single pay run, the system will automatically allocate the salary, CPF calculations, bank files, and reports per entity.
This guide will cover on:
To enable the settings, head to Settings > Payroll > mark Allow Second Entity checkbox > Save.
How to set 2 entities for the employees
Navigate to My Team
Select the employee you wish to register for the second entity.
Make sure that the staff is already tagged to the first entity which is located in the Work Information card.
Scroll down and click on the Current Wage card
A pop-up modal will appear, then select the entity from the Second Entity dropdown.
Note: The second entity must be a different entity from the first, otherwise the system will not allow the data to be saved.Specify the salary amount for the second entity and click on Save button at the bottom.
Daily Rate for Salaried Workers
If salaried staff tagged to 2 entities, the formula used for daily rate is: (12 ÷ (52 x Working Days per Week)) x (Basic Rate + Second Entity Rate).
For the hourly workers
If the second entity's wage is a fixed amount, you can enter the value directly into the employee's profile. This way, when the payroll is generated, the second entity's wage will be taken from here.
If the second entity's wage fluctuates based on the hours, you can enter the amount as $0 and then adjust the value after generating the payroll using the Edit Payroll function.
Setup using Mass Edit Staff
When editing for multiple staff at once, you can use the Mass Edit Staff to speed up the process. You can download the CSV files, make edits using Excel or Google Sheets, and then re-upload the modified CSV back to the system.
Navigate to My Team
Click on the Mass Add/ Edit button and click on the CSV - Edit Staff Details
A pop-up modal will appear, you can download the file for all staff or select a few by clicking on the Select Staff tab and then download the file.
Open the CSV file, and search for the Second Entity row
Enter the Second Entity Name in the column.
Look for the Second Entity (Wage) and key in the second entity wage value.
Note: you can leave blank for the staff that is not registered on the second entity.Browse the modified CSV file or drag and drop to the Upload box.
Click on submit button
Running Payroll with Multi-Entities Staff
Navigate to the Payroll menu on the header menu
On the side menu navigate to Run Payroll
You can run payroll for staff in 2 entities within the same payrun. The system will automatically allocate the salary, pay items, CPF calculations and reporting to the correct entity.
Click on the Create Payroll button
View and Edit Payroll
Once the payroll is created, the system will automatically redirect you to the Payroll List page. To check the allocations, click the View Payroll button.
On the View payroll page, the system will automatically separate the calculations and generate 2 different payslip according to the entity.
As seen in the example use case the staff name: Dicky and Jos is registered to 2 different entities, Entity A and Entity B.
If you wanted to edit the payroll to adjust the values, click on Edit Payroll button .
In the Edit Payroll page, staff who are tagged to 2 entities will show up like this:
About pay items for multi-entity:
For the second entity, the pay item amount is based on the staff's basic rate settings and you cannot add another pay item to second entity. However, you can edit the value on edit payroll for Basic Pay. If you need to add another pay item for the second entity, please get in touch with us to discuss this further.
If you need to do a bulk update on the payroll, you can use Mass Edit Payroll:
Click on the Mass Edit Payroll button on the right and download the excel template.
In the Excel file, staff with two entities also split to two rows. The second entity wage is under the “Basic Pay” column depends on staff’s wage type setting (Salaried/Hourly). You can override the amount for each pay item for only the first entity.
Important note on filling in the amount and remarks for staff who’s tagged to 2 entities:
Row 1 - Staff X in Entity A ( first entity):
You can fill in other pay item’s amount and remarks
Row 2 - Staff X in Entity B (second entity):
Other pay item’s amount and remarks should be empty
You can update the Basic Pay (Salaried/Hourly) amount and add remarks (optional)
Save the file as Excel Workbook (*. xlsx) and upload the file.
Click on Submit
How Staff’s CPF Calculation Looks Like
Staff who tagged to 2 entities will have their CPF calculated separately for each entity. To view their statutory calculations:
Go to Payroll and click on Monthly Total & CPF on the left menu. Then set the period and business entity.
Staff who are tagged to 2 entities will show up in both business entities and will be calculated based on gross salary for each entity. For example below, Dicky is tagged to Entity A and Entity B.
How Staff's Payslip Looks Like
Go to Payroll List and click on View Payroll button
You will be directed to View Payroll page. Staff who's tagged to 2 entities will have their payslip split for each entity.
Click on View Payslip button on the right.
You will be directed to a new tab.
This is how payslip looks like for the first or main entity:
This is how payslip looks like for the second entity:
Untagging Staff from Second Entity
To remove staff from the 2nd Entity:
Go to My Team and select the staff.
Click on the Current Wages Setup card and select “No Entity” from the second entity drop down setting.
Click on Save.
Frequently Asked Questions on 1 Employee-2 Entities
Q: Does StaffAny guarantee that I will be compliant with Work Pass Regulation by using 1 Employee-2 Entities feature?
A: No software provider can guarantee compliance. While StaffAny's PayrollAny feature is designed to facilitate payment for staff across multiple entities while adhering to MoM requirements, it is not intended to relieve you of your obligation to comply with MoM Requirements applicable to your business. It is the sole responsibility of each customer to ensure that they pay their employees correctly and in compliance with all MoM Requirements applicable to their business. Please review our Terms of Service for more information.
Q: Can I change entities (first and/or second) after I create payroll? Will it be updated accordingly?
A: If you want to change the staff's business entity after you run payroll:
Go to My Team and select the staff you want to update.
If you want to change their first entity, you can update their Business Entity on the Work Information card.
If you want to change their second entity, you can update their Second Entity on the Current Wages Setup card.
Go back to Payroll and run payroll for the staff.
If you have any questions or encounter an issue, please reach out to our support team using the green chat button at the bottom right.