Singapore Payroll Services
Premia TNC offers payroll services to meet the needs of businesses in Singapore looking to streamline their in-house operations as well as assist businesses in complying to the legislation requirements under the Employment Act. Whether it is managing the payroll of your entire staff, protecting the confidentiality of your data or ensuring compliance to the related legislation, our team of professionals will be able to support and provide value-added services at an affordable rate.
What do our payroll services cover? Some examples of such services are the computation of employees’ monthly salaries, bonuses, deductions and processing of yearly IR8A. In addition, we include tax clearance (IR21) filing for non-Singapore Citizen employees. Our payroll software system also generates pay slips in accordance to statutory requirements*.
Scope of services includes but is not limited to the following:
- Compute and process the payroll for the employees on bi monthly or monthly basis
- Assist companies in generating payslips using in-house payroll system
- Process gross to net salary and applicable CPF, CDAC, MBMF, SINDA, ECF as well as SDL calculation
- Computation of CPF for various allowances
- Computation of bonuses and pay for various scenarios
- Computation and paying of overtime work
- Computation of incomplete month for new and resigning employee
- Payment in lieu of a notice of termination
- Payment for work on a rest day or public holiday
- Payment for annual or sick leave
- Deduction of pay for absence from work or unpaid leave
- Compilation of monthly payroll summary reports
- CSN Number registration with CPF Board
- On-line submission for monthly CPF contribution
- On-line updating of company and staff particulars
- Yearly IR8A preparation including that of resigning or past employees
- AIS preparation and submission including that of resigning or past employees
- Filing of tax clearance (IR21) for non-Singapore Citizen who ceases employment, goes on an overseas posting or plans to leave Singapore for more than three months
- Advisory on payroll related matters such as early termination, redundancies, NSmen service pay and maternity leave.
Statutory Requirements
It is compulsory for companies to issue pay slips to their employees. Some of the statutory requirements include:
- Printing and distribution of itemised* pay slips
- Online submission to CPF Board by stipulated deadline
- Prepare and submit year-end tax forms (IR8A) and relevant appendixes
- Online submission to IRAS for year-end tax returns
- Filing of Form IR21 at least one month before cessation of work, start of overseas posting or leaving Singapore for more than three months
From 1 April 2016, all employers must issue itemised pay slips to employees covered by the Employment Act. Below are some of the detailed requirements such as what items need to be included, and when/how to distribute the pay slips:
* Itemised Pay Slips
| When to give | How to give | |
| Together with payment to employee | Soft copy or hard copy including hand written | |
| Items to include | ||
|
The payslip must include the items below, if applicable 01. Full name of employer 02. Full name of employee 03. Date of payment 04. Basic salary 05. Start date and end date of salary period 06. Allowances paid 07. Other additional payment such as bonus, public holiday pay 08. Deductions such as employee CPF 09. Overtime worked 10. Overtime pay 11. Overtime start date and end date 12. Net salary |
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Did you Know?
Non-payment of salary is an offence. Your employer must pay your salary on time, according to the terms of your employment contract.
If you are not paid on time, approach your employer to understand if there are reasons for the late payment, and whether the regular payment schedule can be resumed.
If you do not receive your salary, you can file an employment-related claim at the Tripartite Alliance for Dispute Management (TADM), or approach your union for assistance.
Frequently Asked Questions
Payroll
1. I have heard about the Auto-Inclusion Scheme (AIS). What is the difference between IR8A and AIS and which one should I use?
Employers are required by law (S68(2) of the Income Tax Act) to prepare Form IR8A including Appendix 8A, Appendix 8B or Form IR8S (where applicable) for employees who are employed in Singapore by 1 Mar each year. The hard copy form does not need to be submitted to IRAS.
AIS allows employers to submit employees’ employment income to IRAS electronically. Hard copies of the IR8A including IR8S, Appendix 8A, Appendix 8B (if applicable) are not required to be distributed to employees. Employees may refer to their payslips for details of their employment income and view their auto-included information at myTax Portal when filing their individual income tax returns.
AIS is compulsory for employers with 5 or more employees from YA2022. However, employers with less than 5 employees are welcome to join AIS.
2. What if a company fails to give one month’s notice for tax clearance (IR21) to IRAS?
If you are unable to give one month’s notice, a valid reason (for example, the employee resigned immediately) has to be provided to IRAS in the form IR21. Companies that do not file or are late in filing without a valid reason may be liable to a fine of up to S$1,000.
3. My employee is a Singapore permanent resident and will continue to work in Singapore after leaving my company. Do i still need to file IR21?
A Letter of Undertaking (LOU) needs to be obtained from the employee stating that he/she will not leave Singapore permanently. With the LOU, the company is not required to file the Form IR21 for the employee but must keep the LOU in the company’s records.
However, this concession does not apply if the SPR employee is going on an overseas posting or employment. You are required to seek tax clearance for the SPR employee who is on an overseas posting or employment unless he/she meets the following conditions.
The period away from Singapore does not exceed six months;
The employee would return to Singapore to work for the same employer and continue to hold a valid work pass under the same employer during the period that the employee is away from Singapore; and
The Singapore employer continues to pay the employee’s remuneration during the said period.
The above applies to overseas postings on or after 1 Jan 2016 which are incidental to the employment in Singapore. Thus, tax clearance is still required for cases where the services rendered overseas are not incidental to the Singapore employment.
