You are paying salary in multiple payroll batches within the same pay cycle (e.g. paying Double Pay or Bonus separately from monthly salary). You want to make sure the related MPF contribution is correct.
Payroll batches with the same MPF Contribution Date are regarded by Backstage as belonging to the same MPF contribution cycle.
Upon preparing each payroll batch, Backstage will allocate the outstanding contribution to the current payroll batch, as calculated by:
Total MPF Contribution — MPF contribution from Posted payroll batches =
Outstanding MPF contribution
Example 1 :
Bouns HKD 5,000, Basic Salary HKD 15,000 --> Total relevant income = HKD 20,000, i.e MPF = 20000 x 5% = HKD 1,000
1st Payroll Batch = Bonus payment of HKD 5,000
2nd Payroll Batch = Basic Salary HKD 15,000 + Outstanding MPF contribution HKD 1,000
As 1st Payroll Batch not meet the minimum contribution requirement, the employee contributes nothing in this batch.
Example 2 :
Bouns HKD 10,000, Basic Salary HKD 15,000 --> Total relevant income = HKD 30,000, i.e MPF = 30000 x 5% = HKD 1,500
1st Payroll Batch = Bonus HKD 10,000 + Outstanding MPF contribution HKD500
2nd Payroll Batch = Basic Salary HKD 15,000 + Outstanding MPF contribution HKD 1,000