Background

Singapore employers need to either file their employees' employment income online (companies with more than 7 employees) or issue their employees with a summary of their employment income (IR8A form) for the previous year by 1 Mar of each year.

Items to consider:

  • Identify Company Paid items for the year
  • Identify Payroll Elements to be used for declaration
  • Classification of Payroll Element for Tax declaration
  • Check For Any Missing Personnel Tax Compulsory Information
  • Skip Year-end Process for Employee with IR21 declared

  1. Identify Company Paid Items for the year

Purpose:

Check and verify what pay elements are used by company for the year. Use this information to decide which payroll element will be used for tax declaration.

 

1.1 Go to PayrollàReportsàPay HistoryàClick on Summary

1.2 Select the Year 2019, Select Month up to December , Click Search

 

 

 

2. Identify Payroll Elements to Be Used For Declaration

 

Purpose:

Check and verify relevant payroll elements are assigned as tax items for declaration

 

2.1 Go to Payroll -> Reports-> Pay Item/Element Listing

 

Salary being allocated in IRAS for tax declaration

 

3. Classification of Pay Items for Declaration

 

Purpose:

To assign Pay Element for Tax Declaration

 

3.1 Go to Payroll -> Manage payroll -> Payroll Element

3.2 Select the company to manage and the following screen will appear

 

 

3.3 Click on the Element name to view the details of the element.

 

 

Select the IRAS field to map to the relevant field in the IR8A form. Below is a list of common pay items and how they are mapped to the IR8A fields for your reference.

 

No

Code 

IRAS Field

Common Pay Items Mapped to this Field

1

INC_A_1

INCOME A: Gross Salary, Fees, Leave Pay, etc

Salary
OT1.0, OT1.5,OT2.0
Annual Leave Pay, Leave Encashment
No Pay Leave, National Service
 Etc.

2

INC_B_1

INCOME B:Bonus non-contractual

Bonus, Performance Bonus , etc.

3

INC_B_2

INCOME B:Bonus contractual

AWS

4

INC_C_1

INCOME C:Director Fee


5

INC_C_2

INCOME C:Employee CPF Borne by Employer


6

INC_D_1

INCOME D(1):Gross Commission

Commission

7

INC_D_2

INCOME D(2):Pension


8

INC_D_3A

INCOME D(3):Transport Allowance

Transport Allowance
 Car Allowance

9

INC_D_3B

INCOME D(3):Entertainment Allowance

Entertainment Allowance

10

INC_D_3C

INCOME D(3):Others Allowance

Hand phone Allowance
 Housing Allowance

11

INC_D_4A1

INCOME D(4a):Gratuity

Gratuity

12

INC_D_4A2

INCOME D(4a):Notice Pay

Notice Pay

13

INC_D_4A3

INCOME D(4a):Ex-gratia

Ex-gratia

14

INC_D_4A4

INCOME D(4a):Others


16

INC_D_5

INCOME D(5):Retirement benefits


17

INC_D_6

INCOME D(6):Employer Pension/CPF outside Singapore


18

INC_D_7

INCOME D(7):Excess/Voluntary CPF By Employer

Voluntary ER CPF 

19

INC_D_8

INCOME D(8):Gains/Profits from Share Option


20

INC_D_9

INCOME D(9):Benefits-in-kinds


21

INC_E_1

INCOME E:Gains/Profits from Share Option before 01/01/2003


22

INC_F_1

INCOME F:Employee Income Tax borne by Employer


23

INC_G_1

INCOME G:Section 45(applicable to non-resident director)


24

INC_H_1

INCOME H:Exempt Income/Income subject to Tax Remission


25

INC_I_1

INCOME I:Cessation Provision applicable


26

INC_J_1

INCOME J:Remarks


27

DED_1

DEDUCTIONS :Employee Compulsory Contribution (CPF/Pension)


28

DED_2

DEDUCTIONS :Employee Voluntary Contribution to CPF


29

DED_3

DEDUCTIONS :Donations (Mendaki Fund, Community Chest, SINDA, CDAC, ECF, others tax exempt donations

CDAC, MBMF, SINDA, ECF
 (Note : 50% of MBMF contribution goes to here)

30

DED_4

DEDUCTIONS :Donations (Mosque Building Fund

(Note : 50% of MBMF contribution goes to here)

31

DED_5

DEDUCTIONS :Donations (Insurance


 

https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable--What-is-Not/

 

Note:

  • If all Bonus & AWS are paid in 2019, just set “Report at Current Year” so that the system will report the bonus in 2019 IR8A Form.

 

  • If Bonus & AWS is paid in 2020 and to be declared in 2019 IR8A Form, you will need to indicate it as “Report at Previous Year”.

    4. Check for Any Missing Personnel Information

 

Purpose:

Check and verify relevant payroll elements are assigned as tax items for declaration

 

 

4.1 Go to Payroll - Reports -Year End Tax Compulsory

4.2 Select 2019, Click on Process

4.3 If there are asterisk “*” listed, you will need to update the relevant information accordingly in the respective personnel screen

 

 

 

Update Employee Details

 

  1. Go to Personnel -> Manage Employees -> Employees. 
  2. Click on the employee name that you wish to manage.
  3. Click on Contact menu item on the right hand side.

4.    Update the information according and select the Contact type as Primary

 

 

 

NOTE: 

In case the employee does not have a fixed address, please indicate your company address to this employee. This is to ensure there is an address available. If the employee is using a foreign address, please ensure that the postal code is up to 6 digits. Indicate ZERO infront if it is less than 6 digits.

 

 

5. Skip Tax processing who had IR21 Declared

 

Purpose:

Any employee that had Skip Tax Declaration checked will not be processed for year-end submission as their tax had already been declared.

 

5.1 Go to Personnel -> Manage Employee -> Employees

5.2 Pick an employee

5.3 Go to Statutory Tab

5.4 Tick on Skip Tax Declaration for those already submitted IR21. Once done, click Save 

 

 

Applicable Roles:

  • Payroll Administrator
  • System Administrator

Supported on:

  • Web portal only