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
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.
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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
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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
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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 |
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 |
9 | INC_D_3B | INCOME D(3):Entertainment Allowance | Entertainment Allowance |
10 | INC_D_3C | INCOME D(3):Others Allowance | Hand phone 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 |
30 | DED_4 | DEDUCTIONS :Donations (Mosque Building Fund | (Note : 50% of MBMF contribution goes to here) |
31 | DED_5 | DEDUCTIONS :Donations (Insurance |
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
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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
- Go to Personnel -> Manage Employees -> Employees.
- Click on the employee name that you wish to manage.
- 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