Calculating Voluntary CPF Deductions
Voluntary CPF deductions are set up without pre processing formula. They use an amount element for EE and ER deductions using formulas for each calculation. CPF FM VOL PAYEE and CPF FM VOL ER formula, there is a post processing formula for each calculation CPF FM VOL EMPY and EE CPF FM VOL EMPYER. However, as eligibility will be by individual assignments, they have no generation control.
There are two voluntary CPF deductions:
CPF VOL ER — Employer Voluntary CPF.
CPF VOL EE — Employee Voluntary CPF.
The CPF VOL ER deduction is used for Voluntary CPF contributions made by the employer. The deduction uses an Amount calculation rule, where the amount is calculated through a formula CPF FM VOL ER.
The CPF VOL EE deduction is used for Voluntary CPF contributions made by the employee. The deduction uses an Amount calculation rule, where the amount is calculated through a formula CPF FM VOL PAYEE.
The maximum amount of Voluntary CPF for a person is the difference between the CPF Annual Limit and the amount of mandatory contributions made in the calendar year.
When the sum of YTD’s of CPF ORD EE + CPF ORD ER + CPF ADD EE + CPF ADD ER + CPF VOL EE + CPF VOL ER exceeds the CPF annual limit for the year. a warning message states that the CPF has reached the maximum limit and any additional contribution beyond will be considered as over contribution.