BSI Article: SSS adds new class of salary deduction in January 2021

We the taxpaying middle class - and payroll software makers, and users - once again get a reminder of the changeability of payroll parameters. A year and a half after the most recent change in payroll computation rules, we get a major new change to SSS deductions. This one dropped on us last December 7th - the 79th anniversary of Japan's attack on Pearl Harbor.

The Social Security System has promulgated a revised contribution table (see below), to take effect on day 1 of 2021. Click here to see SSS Circular No. 2020-033.

If this was merely a case of increased Employer/Employee Contributions or newly established salary ranges, effecting the new contributions would have simply been a download of a new SSS Contribution table, without any need to modify computerized payroll software algorithms.

Unfortunately, this won't be the case with Circular No. 2020-033.

Photo: Kelly Sikkema

Circular No. 2020-033 introduces a totally new class of contributions for both the employee and employer: the Mandatory Provident Fund. This therefore requires new algorithms in computing pay and corresponding SSS Contributions and the new Mandatory Provident Fund Contributions.

There will be no choice for anyone in the payroll field. If you're doing your payroll manually, you'll need to overhaul your spreadsheet models by January 1, 2021. And if your payroll is computerized - regardless of who your payroll app supplier is - you are well advised to scramble: you'll need to get your payroll database structures modified and expanded; and you'll need to rewrite your algorithms, processing modules, and reports.

The SSS reports, Employee Ledgers, Pay Registers and other reports where SSS contributions appear - all of these will have to be modified. The Annualization modules, and the tables and reports on these will also require modification.

With this latest change, ALL payroll software offerings by ALL payroll software vendors will need to undergo many modifications and rewrites. Therefore, if you are a using any payroll software solution at all, from any software vendor at all, you will have to upgrade your current license to respond to this new SSS development.

Balmori Software wants to assure our customers that we are already at work rewriting our SURE! PayMaster to address this latest regulatory change.

We shall be able to offer an upgrade that addresses the new SSS rules in sufficient time for our clients to be able to comply by 2021 January 01. Stand by for that upgrade announcement in about a week.
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Automatically and securely email payslips direct to your employees

SURE! PayMaster's QuickSend module

SURE! PayMaster has a new optional feature that will increase your data security and further reduce the man-hours you devote to the payroll process - permanently.

We call it the QuickSend module; and it will let you automatically email encrypted (password protected) payslips directly to employees.

At last, this aspect of payroll can be fully paperless. And swift.

No more need to print out payslips. No more need to stuff them into envelopes and then seal those envelopes for confidentiality.

No more need to rely on a cadre of trusted clerks to distribute the payslips to all company workers every payday.

But, really, not consuming paper or printer ink, and not expending the man-hours that the physical printing and distribution processes consume - these are the least of SURE! PayMaster QuickSend's benefits.

With QuickSend automatically emailing the payslip directly from HR to the employee's email inbox, you can stop entrusting the handling of payslips to clerical intermediaries.

By eliminating intermediaries, you improve pay information confidentiality. Workers' pay becomes nearly impossible to pry into, hence there will be less grist for the company rumor mill, less discontent in the ranks.

Although your payroll officers can email pay slips individually if they have to, QuickSend can also do "wholesale blasts," thus reducing the delivery of pay slips to all employees to mere seconds.

Another benefit is that employees will never again have to block off time to troop to the company paymaster just to get their pay slips, and then sign for these on a logbook.

These archaic rituals are another time-burner; and it's made worse by having to be done sequentially, forcing people to line up and burn yet more time.

Multiply these few minutes per employee by your total employee population, and you'll appreciate how eliminating them gives you back hundreds of man-hours of productive employee time.

And if your firm has multiple locations, emailing pay slips directly to employees eliminates a whole set of protocols, and man-hours, that the printing and distribution of physical pay slips entails.

Of course speeding up the conveying of payslips to your employees will also improve morale: nobody ever complained about getting his payslip sooner rather than later.

Call now for a proposal to enhance your SURE! PayMaster with QuickSend.
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