User's Guide Income Tax Module 2008 - · PDF fileTax clearance: IR21 ... IR8A .....100 Verification report - Supplementary IR8a

Printed on 31 October, 2008

User's Guide

Income Tax Module 2008 v8.3.f

Easy Pay Enterprise (Singapore version) v8.3

Creative Software Pte Ltd website: www.creative.com.sg Sage website: www.sage.com

Copyright © 2008 Creative Software Pte Ltd

All rights reserved. No part of this manual shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, desktop publishing, recording, or otherwise without permission from Creative Software Pte Ltd. Patent liability is assumed with respect to the use of the information contained here in. While every precaution has been taken in the information of this book, the Creative Software Pte Ltd assumes no responsibility for errors or omissions. Neither is there any liability assumed for damages resulting from the use of the information contained here in.

Easy Pay Enterprise is a trademark of Creative Software Pte Ltd in Singapore and other countries. Other products and certain terms mentioned herein may be trademarks of their respective owners.

The examples companies, organizations, products, people and events depicted herein are fictitious. No association with any real company, organization, product, person or event is intended or should be inferred.

Creative Software Pte Ltd

No 7 Jalan Kilang #07-01, Singapore 159407

Singapore

(65) 6278 0097

Internet E-mail: [email protected]

Website: http://www.creative.com.sg

i

Contents

Introduction 1

Overall workflow ......................................................................................................................................... 1 Year of Assessment...................................................................................................................................... 2 Getting ready for income tax........................................................................................................................ 2 Things to do before tax processing............................................................................................................... 8 Code Properties .......................................................................................................................................... 12 Overseas Posting: General notes ................................................................................................................ 14 Employee's Mailing Address...................................................................................................................... 16

Income Tax Processing 19

Income tax module ..................................................................................................................................... 19 Step 1: Setup .............................................................................................................................................. 19 Step 2: Processing ...................................................................................................................................... 30 Step 3: Modify ........................................................................................................................................... 31 Step 4: Optional.......................................................................................................................................... 39 Step 5: Reports ........................................................................................................................................... 45 Step 6: e-Submission.................................................................................................................................. 50

Income Tax Processing (monthly) 59

Tax clearance: IR21 ................................................................................................................................... 59 Overview.................................................................................................................................................... 60 Modify IR21............................................................................................................................................... 62

Preparing for bonus processing 65

Bonus Processing ....................................................................................................................................... 65 Report Shortcuts......................................................................................................................................... 70 Report samples ........................................................................................................................................... 71 Clear Terminated staff (Optional) .............................................................................................................. 73

Year end closing 75

Initialise calendar ....................................................................................................................................... 75 Public holidays ........................................................................................................................................... 76 Initialise Leave ........................................................................................................................................... 78 Initialise Medical year................................................................................................................................ 80 Cost centre: New cost year......................................................................................................................... 80

Report samples 82

IR8A form.................................................................................................................................................. 83 Supplementary IR8A form......................................................................................................................... 84 IR8S form................................................................................................................................................... 85 Appendix 8A .............................................................................................................................................. 86 Appendix 8B form...................................................................................................................................... 87 Summary report (Detail) ............................................................................................................................ 89 Summary report (Company)....................................................................................................................... 90

ii Contents

CPF Adjustment..........................................................................................................................................91 IR21 form ...................................................................................................................................................92 IR21 - Appendix 2 form..............................................................................................................................94 IR21 - Appendix 1 form..............................................................................................................................95 IR21 - Appendix 3 form..............................................................................................................................97 IR21 Summary Report (Detail)...................................................................................................................98 IR21 Summary report (Company) ..............................................................................................................99 Verification report - IR8A ........................................................................................................................100 Verification report - Supplementary IR8a ................................................................................................102 Verification report - IR8S .........................................................................................................................104 Verification report - Appendix 8A............................................................................................................111 Verification report - Appendix 8b.............................................................................................................118 IRAS Identity Listing Report....................................................................................................................120

IRAS Nationality code 121

A, B, C, D .................................................................................................................................................121 E, F, G, H..................................................................................................................................................122 I, J, K, L ....................................................................................................................................................123 M, N, O, P.................................................................................................................................................124 Q, R, S, T ..................................................................................................................................................126 U, V, W, X, Y, Z.......................................................................................................................................127

Frequently Asked Questions 128

Index 133

Useful contacts 135

1

Introduction

If you have not already done so, please refer to the income tax filing guide by IRAS (http://www.iras.gov.sg/irasHome/page03.aspx?id=2856).

In This Chapter

Overall workflow ................................................................1 Year of Assessment ............................................................2 Getting ready for income tax ...............................................2 Things to do before tax processing .......................................8 Code Properties..................................................................12 Overseas Posting: General notes ..........................................14 Employee's Mailing Address .................................................16

Overall workflow

Income tax in Singapore is assessed annually. Employers are required to fill in the required income tax forms for employees. EPE has the following forms encoded:

� IR8A (Employee's remuneration)

� IR8S (For excess or voluntary CPF contribution)

� Appendix 8A (Benefits in kind)

� Appendix 8B (Stock options & share ownership)

� IR21 (Tax clearance)

Each of these forms have their own explanatory notes, which can be downloaded from the IRAS website at http://www.iras.gov.sg (under Responsibilities as employer).

C H A P T E R 1

Introduction

2

Much of the instructions in this manual are in a condensed form, especially when they refer to other manuals. The User Manuals for each module contains additional information.

Year of Assessment

Throughout this user guide, the term 'Year of Assessment' means the same as on the IRAS forms. In this manual this key phrase may be shortened to 'YA' followed by a year e.g. YA 2009. Year of Assessment for the current year is always based on the period from 1st January to 31st December of the previous year unless stated otherwise by IRAS.

Start 1st Jan 2007 1st Jan 2008 1st Jan 2009

End 31st Dec 2007 31st Dec 2008 31st Dec 2009

YA 2008 YA 2009 YA 2010

Getting ready for income tax

Getting ready for the income tax processing is simply making a pre-income-tax-processing backup and updating the EPE program to the version that contains the latest changes for income tax.


3

Creating backups

Backups are copies of your data at a particular point in time. A working backup will allow you to revert your changes to the time you made that backup.

Updating Easy Pay Enterprise (EPE)

After making a working backup of your database, proceed to update Easy Pay Enterprise. Have the update CD ready, tell all users to log off and close all EPE windows.

Important. ePortal users should know that ePortal releases are synchronised with EPE versions.

To update EPE

1 Insert the Easy Pay Enterprise CD into your CD-ROM drive.

2 On the taskbar, Click on the Start button, and then Click on the Run button. The Run dialog box will appear.

3 Type 'd:\EPE-8300\Setup.exe' or 'e:\EPE-8300\setup.exe' in the dialog box (substitute the appropriate drive letter of your CD-ROM drive for the letter 'd' or 'e') and then Click on the Ok button. The Installation Setup window appears.

Introduction

4

4 Select 'Main Package' and Click on the Install button. A warning message appears, if you have not already done so, close all EPE modules.

5 Shortly you will see the Installation Wizard.

6 Click on the Next button. Read the License agreement (see following image). Select 'I accept the license agreement' to proceed. Click on the Next button.


5

7 Leave the installation path as the default (see following image). Click on the Next button.

8 The setup program will detect a previous version. Click on the OK button to uninstall the previous version.

9 Wait for a moment for the uninstallation to finish. When the uninstallation process finishes, the next step appears (see following image). Untick the version that you do not use. Click on the Next button.

Introduction

6

10 The shortcut icons will be created in the default folder. Leave it as the default. Click on the Next button.

11 The final step is to check that all the settings are correct (see following image). Click on the Install button to begin the installation immediately.


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12 The installation begins (see following image).

13 If its successfully installed, the final message appears (see following image). Click on the Finish button.

14 At the Installation Setup window, select the option 'EPE Patches'.

15 Set the EPE Program folder to the destination folder you have installed EPE in (see step 12 of this procedure). If you use the default then it should be C:\Program Files\EPE\Program (see previous image.

Introduction

8

16 Click on the Install button. A final message will appear (see following image).

Things to do before tax processing

In EPE, there are several items you may want to pay close attention to and these are as follows.

� Bonus Contractual / Non Contractual classification

� Declaration date

� Checking reports

� Overseas posting

� Employee address

Not all may apply to the employees in your database, so it is up to you to determine which is relevant in each employee.

Classification of Bonus Code

IRAS classifies bonus into two categories: Contractual and Non-Contractual. In EPE, you can set this for each and every bonus you have. By default each time you create a bonus code, it is treated as non-contractual.

To check or change code property

1 In the Payroll module, from the menu, click on Setup and then Pay Element Property Setup. The Property window appears (see following image).


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2 Click on the Code Property tab.

3 Select the code and change accordingly.

Declaration Dates of Bonus and Other Pay Elements

Declaration dates are important and will determine if a pay item is included in the current year of assessment. You can get additional information from the IRAS explanatory notes. In particular, pay attention to the difference between due and payable against actual payment made.

In EPE, when inserting Bonus, set the year according to the Year of Assessment. The date the payment transferred to the employee is not used.

For example:

Bonus for previous year of assessment 2008 for year ended 31st Dec 2007, set declare year as 2007

Bonus for current year of assessment 2009 for year ended 31st Dec 2008, set declare year as 2008

Note: If it is a contractual bonus, instead of the 'Declare On' date you will see 'Rendered in' where you only need to fill in the year.

Similarly for pay elements, check the declaration dates and set it according to the Year of Assessment. There are three ways to do this.

Introduction

10

To amend Do this

One employee record at a time 1 In the Payroll module, from the menu, click on Pay Processing and then Pay Record.

2 Select the period, unlock the record and double click the employee's record.

3 Click on the pay element, double click and amend the date.

Multiple employee records having the same pay element

1 In the Payroll module, from the menu, click on Pay Processing and then Pay Record.

2 Select the period, select the employee records and unlock.

3 Click on the Tools button. The Pay Process Wizard appears.

4 Select the option Change Declared Date.

5 Select the related pay element ID and set the new declared date to replace the existing ones.

All pay element dates 1 In the Payroll module, from the menu, click on Pay Processing and then Pay Record.

2 Select the period, select the employee records and unlock.

3 Click on the Tools button. The Pay Process Wizard appears.

4 Select the option Change All Declared Date.

5 Set the new date to replace the existing ones.

Classification of Gratuity, Ex-Gratia, Notice Pay and Commission

Using steps similar to classifying bonus code, you can classify the other categories of payments.

Note. See Code properties (on page 12).


11

Print Payroll Internal Checking Reports

You may find the following reports useful. Both are in the Payroll module.

Pay Element Records Report-for checking declaration dates.

� In the Payroll module, from the menu, select Reports and then Pay Record and then Pay Element Record Report.

Pay Element Property Group Report-for identifying which group each pay element belongs to.

Introduction

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� In the Payroll module, from the menu, select Reports and then Setup Report and then Pay Elements Property Report.

Code Properties

For Reimbursement Items

Generally, reimbursements are not taxable.

Note. For items which need to be declared in Appendix 8A, the code should carry the property "other Benefits". The figure will be reported in section 4k of Appendix 8A.

Code Properties

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For Allowance Items

Alternatively you can set Allowances to be non-taxable by assigning the Non Taxable property.

The following table list the EPE Codes and the matching location on the IRAS Forms.

EPE Code Type Forms

Bonus Code Allowance/Deduction IR8A: Income item (b) Bonus

Compensation Code Allowance/Deduction IR8A: Others (d) item 4. Compensation

Contractual Bonus Allowance/Deduction IR8A: Income item (b) Bonus

Director Fee Code Allowance/Deduction IR8A: Income item (c) Director's Fee

Education Code Allowance/Deduction IR8A: Others (d) item 3. Allowance - Others

Entertainment Code Allowance/Deduction IR8A: Others (d) item 3. Allowance - Entertainment

Ex-Gratia Code Allowance/Deduction IR8A: Others (d) item 4. Ex-Gratia

Gratuity Allowance/Deduction IR8A: Others (d) item 4. Gratuity

Gross Salary Code Allowance/Deduction IR8A: Income item (a) Gross Salary

Insurance Code Allowance/Deduction IR8A: Only for e-Submission reporting as separate item

Meal Allowance Allowance/Deduction IR8A: Others (d) item 4. Notice Pay.

Non Taxable Code Allowance/Deduction Any pay element containing this code will not be included in the IR8A form.

Notice Pay Code Allowance/Deduction IR8A: Others (d) item 4. Notice Pay.

Pension code Allowance/Deduction IR8A: Others (d) item 2. Pension

Transport Code Allowance IR8A: Others (d) item 3. Allowance - Transport

Allowances not carrying any of the above code

- IR8A: Others (d) item 3. Allowance - Others

CDAC Code Deduction IR8A: Deduction - Donation.

COMC Code Deduction IR8A: Deduction - Donation.

Donation Code Deduction IR8A: Deduction - Donation.

EUCF Code Deduction IR8A: Deduction - Donation.

MOSQ Code Deduction IR8A: Deduction - Donation.

NS Code Deduction IR8A: Gross Salary (Less NS Pay)

SINDA Code Deduction IR8A: Deduction - Donation.

YMF Code Deduction IR8A: Deduction - Donation.

Other Benefits Code Reimbursement Appendix 8A: Section 4k: Other Benefits.

Introduction

14

Overseas Posting: General notes

Overseas Posting refers to employees who are being posted overseas for a period of time. The following is extracted from the Inland Revenue Authority notes.

• The general principle for determining the source of income from employment is the place where the employment is exercised or services rendered irrespective of whether the employer is in or outside Singapore or where the remuneration is paid. However, if the services rendered outside Singapore on behalf of the employer are merely casual or incidental to the Singapore services, the full remuneration applicable to the services rendered outside Singapore would be attributed to a source inside Singapore and hence subject to Singapore tax. Broadly, an overseas posting is incidental to Singapore employment if it refers to situation where as part of the employee's Singapore employment, the employee is required to travel overseas or where there is no separate contract of employment in respect of the employee's overseas posting and his employment is paid by the Singapore employer.

• If the employee's posting overseas is considered as incidental to the Singapore employment, then all his remuneration including CPF contribution will have to be reported in his Form IR8A.

• However, if the employee is posted overseas to work in branch overseas, and he has a separate employment contract in respect of his overseas posting, it will not be considered as incidental and the Singapore employer will only need to report the portion of the employee's remuneration and CPF contribution relating to his employment in Singapore only.

• For bonus, please take note that if the bonus is paid in respect of the employee's performance in Singapore, the whole amount will be subject to tax in Singapore. Otherwise, only the portion of the bonus that is applicable to the employee's performance in Singapore is considered as sourced in Singapore and subject to tax in Singapore.

• Under the CPF Act, CPF contribution on foreign-sourced income is considered as voluntary. Thus, the employee's CPF contribution on the foreign-sourced income will not be eligible for relief. The employer's CPF contribution made on the foreign-sourced income is not subject to tax in the hands of the employee as it forms part of the foreign-sourced income, which is not taxable in Singapore if received in Singapore with effect from 01/01/2005.

IMPORTANT NOTE! : Please also note that in paragraph 2 of explanatory notes from IRAS for completion of Form IR8A & Appendix 8A for the year ended 31 Dec 2008, the notes stated that employer need not prepare Form IR8A and Appendix 8A for the period the employee is posted overseas unless his overseas assignment is incidental to their employment in Singapore.

If applicable, you need to calculate CPF contributions for the income amount for the overseas posting and key it into the employee's pay record.

Overseas Posting (Incidental to employment in Singapore)

Income and CPF Contributions during the overseas period is subject to Singapore taxation.

Overseas Posting

(Not incidental to employment in Singapore)

Income and CPF contributions during overseas period is not subject to Singapore taxation and have to be excluded from declaration.

IR8S—To specify overseas period From/To dates and overseas Employer/Employee CPF Contributions

If IR8S needs to be submitted, then Section A, Monthly details will need to be amended.

IR8A—Adjust the relevant income components if proration is required.

Note: For employee who is assigned to such overseas posting for the full year, the employer does not need to prepare Form IR8A and Appendix 8A if all the income received are related to the services performed for the overseas posting.

Overseas Posting: General notes

15

To key in CPF for overseas posting

1 In the Payroll module, from the menu, select Pay Processing and then Process Pay.

2 Select a pay period and Click on the Modify button. (If your pay period is locked, you will have to unlock it before any update can be done.)

3 On the Period Summary tab, under the Contribution/Tax section, scroll down till you see Overseas CPF.

4 Type in the CPF contribution.

5 Click on the Save button.

Employee Other Info

There are additional fields for you to store an employee's information. The following table contains a list of additional fields stored in the Employee's Other Info window.

Field Description

Vessel Indicator (FR, SR, SRI) Enter only the codes FR, SR, or SRI

FR = Foreign Registered

SR = Singapore Registered

SRI = Singapore registered plying International waters.

Vessel Name Name of the vessel as per registration papers.

Vessel Registration Registration number.

To key in employee's other information

1 In the Payroll module, from the menu, select Modules and then Pay details. The Pay Detail window appears.

2 Click on the Other Info button.

Introduction

16

The Other Info window appears.

3 Click on the Refresh List button.

4 Key in the vessel details.


Employee's Mailing Address

Employees' current mailing address is used in the IR8A. This can be updated in Personnel Details in the Core module.

In the illustrated screen capture above,

a. this section is a feature that existed before the income tax requirements change. The address stored here is unformatted and is the primary record for all reports.

b. this section is the formatted address according to IRAS requirements for eSubmission data.

c. this button formats the address in portion a into portion b. For mass conversions, you can use the feature in Core Module: Modules > Format address.

The address formatting process checks for addresses with the specific country ID 'Singapore', 'SG', 'SING' and 'Spore' and sets the address type as 'L'. All others are marked as address type 'N'.

Employee's Mailing Address

17

To change employee's mailing address

1 In the Core module, from the menu, Select Modules and then Personnel Details. The Personnel details window appears.

2 Click on the Address tab.

3 Make the changes.


5 For eSubmission users, check that the address is keyed in the formatted section.

19

Income Tax Processing

This chapter covers the series of stages to perform when processing income tax for Singapore. The stages are built into the tax module to ease the year end task.

In This Chapter

Income tax module.............................................................19 Step 1: Setup ....................................................................19 Step 2: Processing..............................................................30 Step 3: Modify ...................................................................31 Step 4: Optional.................................................................39 Step 5: Reports..................................................................45 Step 6: e-Submission..........................................................50

Income tax module

The EPE Income Tax Module is designed around a series of steps to perform to help you fill in the tax forms quickly and easily.

The steps correspond with the tabs you see on the Income tax module.

To start the income tax module

1 Start Easy Pay Enterprise and log in.

2 In the Core module, click on the Income Tax icon. The Income Tax main window will appear.

Step 1: Setup

Setup is where you configure basic and common information that will affect all the income tax forms.

� Global Setup—This option is used to specify the reporting Declaration Dates for Bonus, Director Fees and Gross Commission paid during the year. These dates will appear in IR8A and the eSubmission files (both IRAS direct eSubmission and PAT eSubmission)

� Employer Setup—This for setting employer’s details (Tax Ref No, address/declaration date, and so on) that will appear on the various Income Tax forms/eSubmission files generated from EPE.

C H A P T E R 2


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� IRAS Nationality—This is for Auto Inclusion Scheme users to match the Nationality Codes in EPE to the codes required by IRAS.

Global setup

Global setup contains several important dates that can affect the income tax processing.

To create a global ID (Current IR8A)

1 Click on the Step 1: Setup tab. Click on the Global Setup button.

a. IF there is more than one AGM, use the latest date.

b. Identify whether Gross Commission, if any is paid monthly, other than monthly payment or both.

c. Items paid next year 2009 e.g. in January, but declared for taxation this year 2008.

d. Items paid in current year 2008 e.g. in January, but declared for taxation in the previous year 2007.

2 Click on the New button.

3 Type in an ID name and description e.g. CurrentIR8A2008. Use year and short codes to clearly identify the year and type e.g. SuppIR8A2008. Use different IDs to keep past records.

4 Set the dates for Bonus, Director's Fees and Gross Commission. Refer to the notes below.

Current Year bonus paid in the Current Year

The bonus amount computed will include all the bonus pay elements declared for the current year. Ensure that the date is entered if you have non-contractual bonus.

Note: (Supplementary bonus) For previous year bonus declared in previous year but paid in current year. It is compulsory to create another Global ID, for example, Supplementary2008. The Bonus amount computed will include all the bonus pay elements declared last year, i.e. 2007. The date specified here is only for printing on the supplementary IR8A form. Whether the bonus is contractual / non-contractual depends on the code property assigned to the bonus code.

Director's Fees

Specify the period for which the fees are paid and the date of approval. If the company held more than one meeting during the calendar year to approve payments of the director's fees for the same financial year, enter the date of approval as of the latest meeting held.

CPF Tax Status

Step 1: Setup

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This option is only applicable for CASUAL LABOUR Income declaration, whereby employee CPF is borne by employer.

Tick = Employee CPF borne by Employer will be declared. This will be appearing as a separate line " Employee CPF Borne by Employer" below the line for Director's fees under the Income Tab of Current IR8A, and Hardcopy.

Notes: IR8A - Deduction: Employee Compulsory CPF … will remain as zero amount regardless whether this option is ticked or not. To check the accuracy of the figures, use IR8S report: Section A - Actual EE CPF

Gross Commission

Specify the period for which the gross commission was paid. Also specify, whether the gross commission is paid monthly, one-time payment or both. If company does not pay out this item, can leave as default setting.

5 Set the last two options if you have pay elements paid or declared in the previous year of declaration (see the following section for more information). Otherwise leave both as zero.


7 To view and print the settings you have made so far, Click on the Preview button.

Additional notes-Pay elements paid or declared in the previous year

Using the last two options on setting up a Global ID, you can choose to include or exclude pay elements from the current Year of assessment. It depends on how you have staggered the declaration of pay elements.

Use the first option for items declared in the current Year 2008 and paid in the next year 2009. For example, a bonus declared in 2008 and paid in January 2009, set the 'until period' to one.

2007 2008 2009

For year ended 31 st Dec 2006



Jan Jul Jan Jul Jan Jul

Feb Aug Feb Aug Feb Aug

Mar Sep Mar Sep Mar Sep

Apr Oct Apr Oct Apr Oct

May Nov May Nov May Nov

Jun Dec Jun Dec Jun Dec

Previous year 2007 Current year 2008 Next year 2009

To account for the first option, use the second option for excluding items declared in the previous Year of Assessment and paid in the current year. For example a bonus declared in year 2008 and paid in January 2009, set the 'until period' to one to exclude the pay elements in the first period.


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Figure illustration of various Bonus Contributions

The following examples illustrate some sample settings for Global ID to handle the various bonuses.

Case 1 Bonus paid in tax year

Current Year 2008 Bonus paid in Current Payroll Year 2008. Bonus declaration dates are within year 2008. All Bonus amount need to be declared in Current IR8A.

• Set all dates to the current year.

Case 2 Previous year bonus paid in tax year

Previous year bonuses paid in the current year and not declared in the previous tax year. For example

Non-Contractual Previous Year 2007 Bonus declared in 2007 and paid in Feb 2008.

Contractual Previous Year 2007 Bonus declared in 2007 and paid in Feb 2008.

This bonus has not been declared in previous year taxation. You will need to declare the bonus in Supplementary IR8A.

Step 1: Setup

23

1 Set the global ID for current IR8A.

2 Create a Supplementary IR8A ID under the Global Setup

Case 3 Previous year bonus (declared) paid in tax year

In this example, a bonus meant for the previous year has been paid in the tax year 2008, however if this has been declared in the previous tax year 2007, you will need to exclude it from the supplementary IR8A.

Non-Contractual Previous Year 2007 Bonus declared in 2007 and paid in Feb 2008.


24

• Set the global ID for current IR8A to exclude the initial months from the Supplementary IR8A (last option at the bottom).

Case 4 Partial undeclared previous year bonus in the same pay period (same tax year)

In this scenario, you have several previous year bonuses paid in the tax year but for one reason or another, one bonus was left undeclared.

Contractual Previous Year 2007 bonus paid in Feb 2008 and has already been declared in previous taxation year. At the same time, there is another previous year bonus for 2007 paid in Feb 2008 that is not declared.

Since both bonuses have the same declaration date and were paid in the same payroll period, it is not possible to set the options to process the one and not the other.

Case 5 Undeclared previous year bonus (different pay period)

In this scenario, you have several previous year bonuses paid in the tax year but at different periods.

Cherry's bonus contractual bonus for the year 2007 was paid in Jan 2008 and has already been declared in previous tax year.

Lin Ting's bonus for 2007 was paid in Feb 2008, but was not declared for the previous tax year.

The bonus in Feb 2008 will have to be declared in Supplementary IR8A. However, you will need to exclude the bonus paid in Jan 2008 from the Supplementary IR8A to avoid double declaration.

Step 1: Setup

25

1 Set the global ID for Current IR8A to exclude the first month in the supplementary IR8A

2 Create a supplementary ID for the previous tax year.

Case 6 Declared bonuses paid in the next year

In this scenario, bonuses for the current tax year has been declared but paid in the next year.

a. Non-Contractual bonus declared in 2008 and paid in the following year Jan 2009.


26

b. Contractual bonus declared in 2008 and paid in the following year Jan 2009.

Step 1: Setup

27

Employer setup

An employer ID is an internal reference number. You can create more than one Employer ID. Use different employer IDs for each year to retain past records.

The following table contains additional information on the fields available on the Employer Setup window.

For Do this

Payer's ID Key in the company's tax reference number. For PATLine users, this reference number is the Payer's ID No keyed in PATLine program.


28

Payer's ID Type This ID is referring to Organisation ID type. Select an ID type from the drop down list that is related to the number entered in employer's tax reference.

Available Payer ID types

UEN=UEN-Business, Unique Entity Number (Formerly known as ROB)

UEN-Local=UEN-Local, Unique Entity Number (Formerly known as ROC)

Others=Others, Unique Entity Number others (e.g. Foreign Co. Reg. No.)

ASGD=Tax Reference number assigned by IRAS.

ITR=Income Tax Reference number assigned by IRAS.

CRN=Central Registration number issued by Ministry of trade & Industries.

MCST=Management Corporation Strata Titles number issued by Building and Construction Authority.

GSTN=Goods & Services Tax number issued by IRAS.

Output format

Type Format

7=UEN-Business (ROB)

NNNNNNNNC

8=UEN-Local (ROC)

YYYYNNNNNC

U=UENO TYYPQNNNNC or

SYYPQNNNNC

A=ASGD ANNNNNNNC

I=ITR 4NNNNNNNNC

C=CRN NNNNNNNNNNNC

M=MCST MCSTNNNN

G=GSTN MNNNNNNNNN

Source Company classification-The number will be output to the eSubmission file.

1=MINDEF

4=Government Sector

5=Statutory Board

6=Private sector

7=others

Date of Incorporate Date of incorporation of the company.

Name of the Employer The company name, telephone number, and address is retrieved from the Core module. If the address is changed here it will not be updated at Core.

Name of Division/Branch If applicable, key in the division/branch name. Create a new employer ID for different divisions/branches.

Address, Telephone no The company name, telephone number, and address is retrieved from the Core module. If the address is changed here it will not be updated at Core.

Step 1: Setup

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Pager/Handphone No. For IR21. A number for a cell, mobile or portable telephone. Alternatively a pager number. This is the primary contact for IR21 matters.

Fax For IR21. Facsimile number.

Name of Contact person For IR21. Name of the person reachable by the numbers provided.

Name of the authorised person making the declaration, Designation, Email Address

Name, designation and e-mail of the person in the company who is authorised to make the declaration

Declared Date This date will appear in all IR8A forms printed from the Income Tax module and the eSubmission file.

Auto Inclusion Employers under the Auto-Inclusion Scheme, select this box. Under this scheme, employees are required to do online submission of their income. When the eSubmission data has been sent to IRAS, the employee should see their income details and be able to declare income from other sources.

To configure employer setup

1 Click on the Step 1: Setup tab, Click on the Employer Setup button.

2 Click on the New button. Type in a valid Employer ID and description.

3 Type in the rest of the information required.


5 To view and print the settings you have made so far, Click on the Preview button.

IRAS Nationality

If you are using either the PATLine from Crimson logic or e-Submission from IRAS, you will need to match the nationality codes used in EPE to the codes used in the Income Tax program. Codes used in the Income Tax program are codes provided by IRAS.

To map nationality codes

1 Click on the Step 1: Setup tab, Click on the IRAS Nationality button.

Country Code Country Code Country Code

Australia 503 New Zealand 705 UK 110

China 336 Philippines 305 USA 503

Indonesia 303 Singapore 301 Vietnam 999


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Japan 331 Taiwan 334 None 999

Malaysia 304 Thailand 306 Others 999

2 For nationality codes created in EPE, match the code with a code used in the income tax program. There is a full listing in the Appendix section.

3 Once you have matched the codes that you use in EPE, Click on the Preview button to view the report showing you the list of nationality codes and their match, you can also print out the report to check the codes matches.

4 To update the latest list from EPE for the country ID, Click on the Update button.

Step 2: Processing

The income tax records are generated under Step 2.

Later if you want to remove changes, you can delete the records and regenerate them using this step.

� Process Income Tax-Use this to create new tax records for employees.

� View Records-Use this to display the list of generated tax records. You may find it useful to keep this list open for the rest of the Steps of the tax module.

� Process IR21-Use this to create the IR21 records where applicable.

� View IR21-Use this to view the created IR21 records.

To generate tax records

1 Click on the Step 2: Processing tab. Click on the Process Income Tax button.

2 Choose the tax form then set the global IDs.

Step 3: Modify

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a. If this is not the tax year 2008, close the Process Income Tax window and select 2008 from the menu bar.

b. Select the form to be generated. Note that IR8A is compulsory.

c. Select the correct ID to be applied.

3 Select the employees

4 Click on the Confirm button. Processing begins immediately. After processing, a log file will be available for viewing. Check the log file for any errors or warnings.

5 Repeat processing for Appendix 8A and 8B, where applicable.

To display a list of generated tax records

1 Click on the Step: 2 Processing tab. Click on the View Records button.

2 Arrange the listing by clicking on a column name and dragging it onto the empty space just above. When moving the column name around, two green arrows will be visible to aid placement.

Step 3: Modify

Under Step 3, you can change the details on the tax forms.

There are a number of tabs on each window all that correspond with what you see on the physical form.

Current IR8A

The Current IR8A is divided into six tabs.

� Details,

� Income,

� Income: Others (d),

� Deduction,

� Declaration,

� e-Submission


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The following table contains additional information on the fields available on the Details tab.

Details tab fields Additional information

Last Changed Date Time The last time a change was made and saved.

Employer's Tax Ref. No./ Business Registration No.

Reference number is retrieved from EPE core.

Employer ID assigned.

Employee's Tax Ref No.: *NRIC/FIN (Foreign Identification no.)

You can change the NRIC/FIN number here, but it will not be updated in Personnel Details.

EPE Core: Modules > Personnel Details

Full Name of Employee or Pensioner

Retrieved from EPE core.

EPE Core: Modules > Personnel Details

ID Type There is a report designed to aid you in this. Accessible in the tax module at Reports > IRAS Identity Listing Report.

ID Type for Employee's Tax Ref No:

1 = NRIC, 2 = FIN, 3 = IMF, 4 = Work Permit, 5=Malaysian IC, 6= Passport number

EPE Core: Modules > Personnel Details.

Date of birth Retrieved from EPE core.EPE Core: Modules > Personnel Details.

Gender Retrieved from EPE core.EPE Core: Modules > Personnel Details.

Marital Status Retrieved from EPE core.EPE Core: Modules > Personnel Details.

Designation Retrieved from EPE core.EPE Core: Modules > Employment detail, Position.

Submitted through IR21 This check box has been deleted. Please refer to the IR21 section of this guide.

Address You can amend the mailing address here, but the changes will not be updated in the Core module.

EPE Core: Modules > Personnel; Address tab.

Step 3: Modify

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Type Address type.

L=Local Residential Address, F=Foreign Address, C=C/O Address, N=No Address

Country Linked with IRAS nationality codes.

Date of Commencement Amend if necessary, but the change will not be updated in Core Module records. For employees with more than one employment record, EPE will use the date of hire from the earliest employment record for date of commencement.

Core Module: Modules > Employment Details; Hire date & Cessation date. Only dates within basis year need to be displayed

Date of Cessation Likewise, the cessation date is retrieved from the latest employment record. You can delete the Date of Cessation if you have accidentally set it.

Cessation Provision Cessation Provisions are applicable to those employees who commenced work with a company before 1 Jan 1969 and stopped work thereafter. It involve the adjustment of income to certain basis periods of assessment.

If the employee commenced work before 1 Jan 1969 and ceased work in the current tax year, the indicator will be "Y".

If the employee commenced work after 1 Jan 1969 and ceased work in the current tax year, the indicator will be "N".

IRAS Nationality Code Employee's Nationality is mapped according to the IRAS code you have set under Step1.

EPE Core: Modules > Personnel Details.

Section 45 Relevant to Non-Resients directors only. Select if withholding tax on director's fees apply.

The following table contains additional information on the fields available on the Income tab.

Income tab fields Additional information

Last Changed Date Time The last time a change was made and saved.

Using Global ID The Global ID you have created under Step 1

Header / Footer Message Available on printed IR8A forms only. Messages are specific to employees. Max 35 characters per message.

Item a

Gross

The computed figure that appears is taken from the Basic Salary, OT, Shift, No Pay Leave, back pay and other allowances codes from Pay module that are attached to this component. The Gross button brings up a list of pay elements with 'Gross Salary' code property.

Item b

Bonus

The Bonus figures extracted from EPE Pay module depend the settings done under the Step 1: Setup à Global Setup. The Bonus button brings up a list of pay elements with Bonus Code property.

Item c

Director Fees

Pay elements with 'Director fee' code property in the current year. You can overwrite the amount retrieved. The button brings up a list of related pay items.

Item d

Others

The Others section is contained in another tab. Covered in detail in the following section.

Item e

Employee's Tax

If applicable, the available options areF = Tax fully borne by employer on employment income onlyP = Tax partially borne by employer on certain employment income items, if selected, specify item and amount.H = A fixed amount of income tax liability borne by employee. If selected, specify the amount.If left unselected, this item will be set to N=Not Applicable.


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The following table contains additional information on the fields available on the Income: Others (d) tab.

Income: Others (d) tab fields Additional information

Items d1 to d3 Commission, Pension, Transport, Entertainment and Other allowances. Declaration of items includes commission earned, allowances for transport, entertainment, shift/night duty, meals, clothing, housing and so on.Note: The buttons will bring up a list of related items. The mapped codes are as follows.

• Gross Commission - Commission Code

• Pension - Pension Code

• Transport - Transport Code

• Entertainment - Entertainment Code

• Others -Any Standard Allowance which do not have the non-taxable code

Item d4 Lump Sum paymentThis item has two tabs (1) Lump sum-for breakdown of the payment into available categories and (2) Reason-for stating the reasons and how you have arrived at the amounts.

Compensation for loss of office is not taxable. Please refer explanatory notes supplied by IRAS for further details.

• Gratuity - Gratuity Code

• Compensation - Compensation Code. If there is an amount, state the approval date from IRAS, if any.

• Notice Pay - Notice Pay

• Ex-Gratia - Ex-Gratia Code.

Item d5 Retirement Benefits from Pension / Provident fund

Fill in the name of the fund in the box provided. Fill in the accrued amount up to 31st Dec 1992 and the accrued amount from 1993. Only the amounts from 1993 will be added to the total.

Item d6 Employer Contribution to funds outside Singapore

If there are employer contributions to Pension/Provident funds outside Singapore, key in the amount and details in the space provided.

Item d7 Excess/Voluntary CPF Contribution

There is a ceiling on CPF contributions and those that exceed these limits are taxable. Briefly these are, employers CPF contributions exceeding the compulsory contribution under the CPF Act or exceeding the overall income of $76,500. Check with the latest guidelines from CPF (www.CPF.gov.sg) for detailed explanations.

If there are excess contributions, fill out the IR8S form (Detailed instructions in the next section). The amount displayed here is extracted from the IR8S form (Section B: Employer CPF less Section C: Employer CPF less Overseas Employer CPF).

Item d8 Gains and Profits from Share Options /Other forms of Share Ownership Plans

Use the Appendix 8B form for additional details of employee stock option or share ownership plans. For a quick tally, the figure here is the same as the amount in Section D of the Appendix 8B form.

Item d9 Benefits-in-kinds (BIK)

Use the Appendix 8A form for declaring Benefits-in-Kind. The types of BIK are described in the explanatory notes together with IR8A notes.

The following table contains additional information on the fields available on the Deduction tab.

Step 3: Modify

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Deduction tab fields Additional information

Employee's Compulsory Contribution,Name of fund

Select either �

• CPF, system's default with description Central Provident Fund.

• Designated Pension or Provident Fund-If you select this option, key in the name of the fund in the box provided.

Amount displayed total CPF contributed for the year 2008 less voluntary CPF less overseas CPF, if any.

Donations Pay elements with Donation codes will be listed here. The communities contributions (CDAC, ECF, SINDA, Yayasan, MBF and Community Chest)

The following table contains additional information on the fields available on the e-Submission tab.

e-Submission tab fields Additional information

Insurance Pay elements with insurance codes will be added and the total displayed here. Clicking on the Insurance button will bring up a list of the said pay elements.

Payment To / From Date range of the pay elements.

Remarks Additional information to be included can be keyed in here.

Exempt / Remission income indicator

Exempt Income / Income Subject to Tax Remission amount

This is the Exempt Income/Income subject to Tax Remission indicator.If applicable, select the correct option and key in the amount.

1=Tax Remission on Overseas Cost of Living Allowance (OCLA). Tax Remission on OCLA is applicable to Ministry/Statutory Board.

2=Tax remission on Operation Headquarters (OHQ). Tax Remission on OHQ refers to remission of leave granted to all expatriate employees of companies which are awarded or granted extension of pioneer, export, pioneer service and Operation Headquarters (OHQ) incentives prior to 1st Jan 2004.

3=Seaman

4=Exemption. This refers to income that is exempted from tax under the Income Tax Act. For example, employment income of a seaman who was working on board a Singapore-registered ship plying in international waters is exempted from tax.

N=Not Applicable

To edit the details on the IR8A form

1 Click on the Step 3: Modify tab.

2 Click on the Current IR8A button. The Current IR8A Details window appears.

3 On the Details tab, some of the information is extracted from the Core Module.

4 On the Income tab, the income details are split on two tabs. Item d is covered in a separate tab.

5 On the Income: Others (d) tab, items are numbered 1 to 7.

6 On the Deduction tab, check the amounts.

7 On the Declaration tab, check the information displayed. This is the information you have set under Step 1: Setup >Employer Setup.

8 On the e-Submission tab, this refers to the IRAS direct e-Submission and PAT eSubmission.


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IR8S Form

The IR8S form shows details of CPF Contributions during the year. This form is required when:

• CPF Contributions made exceeded the statutory contributions required under the CPF Act.

• CPF contributions exceed the contributions made on the overall income of $76,500.

• The employer/employee has made excess contribution to CPF and a refund has been claimed from CPF Board.

• The employer/foreign employee contributes to CPF, which is not compulsory under the CPF Act.

This information is correct at the time of printing, check with the CPF board (www.CPF.gov.sg) to ensure you have the most up-to-date information.

The IR8S form is divided into several sections. Similarly on the IR8S Setup window, these sections are contained in similar tabs as follows.

� Section A-Details of monthly wages and CPF contribution (excess, overseas posting). The monthly breakdown of CPF is displayed. The amounts are derived from pay records and can be classified into (a) Contributed amounts that are submitted and (b) Actual amounts that are required by the CPF Act. Contributed amounts may be more than Actual.

� Section B-Voluntary CPF Contribution (other than overseas posting). There are additional notes on Overseas posting in the appendix section.

� Section C-Details of Refund claimed / to be claimed.

� e-Submission-To be filled by users who are under Auto-inclusion Scheme.

In the preceding screen capture,

a. refers to the items relevant to employees holding Singapore Permanent Residence status,

b. refers to Maximum Additional Wage capping,

c. refers to employees posted overseas, and the income is not incidental to Singapore employment.

Step 3: Modify

37

Section A tab

For Section A - The screen displays the monthly breakdown of the employee and the employers CPF on Ordinary and Additional Wages. The Contributed figures are extracted from Payroll Records. The amount of CPF contribution is subjected to the respective CPF classes. The Actual figures depict the actual amount, which should be contributed by the employer / employee under the current CPF Act.

The following table contains additional information on the fields available on the Section A tab.

Field Description

Header Message The header message available only on printed forms. Max 35 characters.

Date of Singapore PR status Provide the date of Singapore PR status if granted on / after 1 January 2006, if applicable. Fill in the Date of Renouncement of Singapore PR, if applicable.

Pay Element for Previous Year Pay Element for Previous Year is the sum of all pay elements, which have declaration date for previous year 2007 in the current payroll year 2008. If a MAW capping is set in Pay Module > CPF Progression, system will default with a tick (Yes) in the check box allocated, otherwise the checkbox will be blank.

Employee/Employer Overseas CPF For Employee/Employer Overseas CPF, the system will extract the summary figures from the Payroll Records based on any overseas CPF amount entered under the Payroll > Process Pay for that employee in the relevant pay period(s) within current payroll year 2008. For further details and payroll screen reference, see Overseas posting (on page 14).

Section B / Section C tab and e-Submission tab

On the Section B tab, the employer and employee voluntary contribution is extracted from the pay records under Process Pay > Contribution / Tax - Voluntary CPF. Then determine whether the voluntary CPF contribution are Obligatory by contract of employment.


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Where CPF refund claimed / to be claimed is applicable, proceed to Section C. Select the CPF Wage Type whether ordinary wage, additional wage or ordinary/additional.

In Section C, click on 'New' to enter the details of refunds (or to claim) from CPF Board. Enter the amount of additional wages, amount of refund, and the date information as required.

For IRAS e-Submission users: (Section C), please note the following.

� Dates must be within Basis Year, example Dates in year 2008 for Basis Year 2008�

� The From date cannot be greater than To date.�

� If there is a From date, then To date cannot be empty and vice versa.

� The Paid date can be greater or equal to From date.�

� The refund given to employer/employee date can be greater or equal to Paid date.

� Only 3 lines of claim are accepted for eSubmission.

� If there is a date in employer claim, then there must be an amount to be claimed for employer and vice versa.

� If there is a date in employee claim, then there must be an amount to be claimed for employee.

e-Submission tab

This feature has been made obsolete. This was relevant only to eSubmission users.

Adjusting for Overseas Posting (NOT incidental)

Adjustment of income and CPF contributions is necessary if the overseas posting is NOT incidental to employment in Singapore. You will need to adjust (a) the IR8S form (if applicable) and (b) the IR8A form.

Step A-Adjusting the IR8S form

The Overseas CPF contributions on the IR8S form is retrieved from the employee's pay records. These are displayed in a table and the table is locked. If you want to make adjustments on the IR8S form directly, you will have to unlock the IR8S table.

To unlock the IR8S table

1 From the menu, select Setup and then Special Option and then Edit IR8S Section A Table.

Step 4: Optional

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2 A check mark indicates that this feature is enabled.

To adjust the IR8S form for Overseas posting

1 Click on the Step 3: Modify tab. Click on the IR8S button. The IR8S Setup window appears.

2 Click on the Section A tab.

3 Scroll towards the right to see the amount under Overseas column.

4 Key in the amount for overseas posting.

5 Click on the Save button.. The fields for overseas posting are now enabled.

6 Set the overseas posting details.


Step B-Adjusting the IR8A form

On the IR8A form, certain fields previously unavailable will now be unlocked.

On the Income tab, these are

� Gross Salary. Ensure that the figure to be amended is after deduction of NS Pay

� Bonus. Non-contractual

� Bonus. Contractual

On the Income: Others (d) tab, these are

� Gross Commission

� Pension

� Allowances-Transport, Entertainment, and Others. The system will sum the changes to reflect as Allowances total once the changes are saved.

Make the relevant changes, save and recalculate.

Step 4: Optional

Benefits-in-kind are declared using the Appendix 8A form.

The IRAS website (www.IRAS.gov.sg) contains a comprehensive list. Stock options and Share ownerships are declared using the Appendix 8B form.


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Appendix 8A

Details of benefits-in-kind declared in Appendix 8A include:

• Accommodation Benefits - place of Residence, furniture and fittings, hotel accommodation

• Other Benefits like:

� Home leave passages (for expatriates)

� Interest payment made by employer

� Life insurance paid by employer

� Free or Subsidised holidays

� Educational expenses

� Long service awards

� Entrance / Transfer Fees and annual Subscriptions to social or recreational clubs

� Gains from assets

� Car benefits

The Appendix 8A form is divided into 4 sections:

Section 1: Declaration of the value of Residence provided to the employee

Section 2: Declaration of the value of furniture and fittings and other benefits like driver and gardener

Section 3: Declaration of the value of the hotel accommodation provided

Section 4: Others, which include all the other benefit items not listed in sections 1, 2 and 3.

To amend the Appendix 8A form

1 Click on the Step 4: Optional tab. Click on the Appendix 8A button. The Appendix 8A window.

2 The header message available only on printed forms. Max 35 characters.

Step 4: Optional

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3 In Section 1, declare the value of Residence provided to an employee or director. The value of the Residence will be added into the Total Value of Benefits-in-kind.

Value of the

place of residence

10% of

residence-OR-

Annual value

Rent paid by employer

whichever is lower.

Rent paid by

the employee

4 Fill in the address of the Residence in the space provided. Click on Retrieve Address to get the current mailing address from Core Module: Modules > Personnel Details; Address tab.

5 State the annual value/rent paid by the employer.

6 Specify the period of occupation. The system will calculate the number of days from the dates that you enter and display it next to the Period of Occupation field.

7 Enter the amount of rent paid by the employee (if applicable).

Note. If there is more than one address during the year, fill the latest address.

IF there is more than one address during the year, use the most recent address and fill in all the details relevant to that address, i.e. annual value/rent paid by employer, period, rent paid by employee and so on.

For auto-inclusion users, you need to submit as an Appendix 8A amendment for the older address with its related value within the basis year. In addition, an IR8A amendment needs to be submitted to record the difference in value for Value of Benefits-in-kind.

8 Next, Click on the Section 2 and fill in items A1-K1 to declare the value of furniture or fittings provided to the employee. The table shows you the list of furnishings and their value per month.

9 From the list, click on the item, and then select the check box Selection. In the fields provided above the table, enter the quantity and the number of days applicable. The system will compute the value of the item. Where the items are shared, amend the computed value accordingly, then click on Save.

10 To declare another type of furnishing, scroll through the list, select the item from the list, and repeat step 8. For some items, enter the amount only.

The formula used to calculate the total value of an item is as follows:

Value of

an item

No. of units Rate No. of Days 12

365

11 Once you have completed, save the entries.


42

12 Click on the Section 3 to record the value of the hotel accommodation provided by the employer.

13 Enter in the number of persons and the number of days the hotel accommodation was provided. You can amend the value ($) that is appropriate. Click save and close.

The formula used to calculate the value of the hotel accommodation provided is as follows.

Value of hotel

accomodation

No. of persons Rate No. of Days 12

365

14 Then in Section 4, fill in the values of the other benefits (item 4a to 4k) provided to the employee.

NOTE: Pioneer /Export/pioneer services/OHQ status cannot be 'NA' if cost of leave passage and incidental benefits is not set to zero.


16 For IRAS e-Submission users.

a. Click on the e-Submission tab.

b. Fill in the additional information.

Step 4: Optional

43

c. Click on the Save button.

Appendix 8B

The Appendix 8B form is for declaring details of gains or profit on any Employee Stock Options (ESOP) or Employee Share Ownership (ESOW) plans.

Have ready on hand the following from IRAS for reference

� An empty Appendix 8B form

� Appendix 8B explanatory notes

To generate records, initialise the appendix 8B records using Step 2: Processing for affected employees.

There are three tabs, each for a specific purpose.

� Section A—Employee equity-based remuneration (EEBR) Scheme

� Section B—Equity Remuneration Incentive Scheme (ERIS) SMEs

� Section C—Equity Remuneration Incentive Scheme (ERIS) All Corporations

� Section D—Equity Remuneration Incentive Scheme (ERIS) Start-Ups

The following table contains additional information on the fields available on the Section A tab.

Field Description

Company Registration number,

Company ID Type,

Company Name

Income tax > Employer ID assigned in Current IR8A.


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Type of plan (c1) either ESOP or ESOW

Employee share options. Refer to IRAS notes for a detail explanation.

Date of grant of ESOP/ESOW plan (c2)

The date is of before or within the current basis year of 2008, must not be a future date.

Exercise Date (d),

Exercise Price (e),

Open Market Value as granted (f) & date exercised (g),

Number of shares (h).

These only apply to stock or share exercised within the current year 2008.

The following table contains additional information on the fields available on the Section B, Section C and Section D.

Field Description

Type of plan (c1) either ESOP or ESOW Refer to IRAS notes for a detail explanation.

Date of grant of ESOP/ESOW plan (c2) The date is of before or within the current basis year of 2008, must not be a future date.

Exercise Date (d),

Exercise Price (e),

Open Market Value as granted (f) & date exercised (g),

Number of shares (h).

These only apply to stock or share exercised within the current year 2008.

Columns i, l and m for Section B tab

Gross Amount Qualifying for Income Tax Exemption under:

ERIS (SMEs) (i)

(i) = (g - f) × h

Gross Amount Qualifying for Income Tax Exemption ($) (l)

(l) = (f - e) × h

Gross Amount of gains from ESOP / ESOW Plans ($)

(M) = (i) + (l)

Columns j, l and m for Section C tab


**ERIS (All Corporations) (j)

(j) = (g - f) × h

*** Gross Amount not qualifying for Tax Exemption($) (l)

(l) = (f - e) × h

Gross Amount of gains from ESOP / ESOW Plans ($) (m)

(m) = (j) + (l)

Columns k, l and m for Section D tab


*** ERIS (Start-ups) (k)

(k)=(g - f) × h

Step 5: Reports

45

*** Gross Amount not qualifying for Tax Exemption($) (l)

(l) = (f - e) × h

Gross Amount of gains from ESOP / ESOW Plans ($)

(m) = (k) + (l)

The primary difference in Sections B, C and D is in columns i, j, k and the formula in column m. See the physical form sample from IRAS.

To modify the Appendix 8B

1 Click on the Step 4: Optional tab > Appendix 8B. The Appendix 8B window appears.

2 Select the employee record (Identity number at the top).

3 Select the appropriate tab (Sections A, B, C, or D).

a. Click on the + button.

b. Set the details accordingly.

4 Section E is located on the lower portion of the Appendix 8B window.

Notes:

i. The figure in Section E is computed from the amounts in Section A, B, C and D. This figure is reflected in item d8 of the IR8A Form.

ii. eSubmission-If the number of shares (column h) exceeds max 7 digits (9,999,999), split the item into a two-line record. There is a limit of 6 lines per section for each upload.

Step 5: Reports

The Standard Reports option will print out the tax forms. Before printing those, use the analysis reports for checking and tallying figures.

Analysis reports

These reports are meant for internal checking. There are several reports you can print out:

� Summary Report (Detail)-by individual employees

� Summary Report (Company)-Company wide summary

� CPF Adjustment-List of employees with CPF variances due to over or under contribution.

To print an Analysis Report

1 Click on the Step 5: Reports tab. Click on the Analysis Report button.

2 Select the Report type, sort option and employee type.


46

3 Additional options are available for each type of report.

� Summary Report-Print Legend.

� CPF Adjustment-Include those with no variance.

4 Click on the Preview button. The report will appear on screen.

5 To print, click on the printer button (<epe_b_printer>) in the upper left corner.

Standard Reports

Each of the available tax forms is available as a Report type, which can be printed out for all types of employees and you can choose to print it on pre-prepared forms.

Report / Form Available type and description

IR8A, Supplementary IR8A For dot-matrix printers using Pre-sealed Envelope (2 PLY).

For laser printers using blank A4 paper.

IR8S, Appendix 8A, Appendix 8B For laser printers using blank A4 paper.

To print a tax form

1 Click on the Step 5: Reports tab. Click on the Standard Report button.

2 Select the Report type, employee and sorting order.

3 Set the paper type.

4 Additional options are available depending on the report.

� Current /Supplementary IR8A-Exclude Zero amount records

� IR8S-(a) Income exceeds 76,500 (b) Excess CPF contribution (c) Additional wage exceeds 40% of Total Earnings (d) IR8S Indicator

5 Click on the Preview button. The report will appear on screen.

� If you have e-Individual Reports installed, an additional window appears.

� Select the preview option and Click on the Process button.


e-Individual Reports

This is a feature available only with the purchase of an e-Individual Reports license.

e-Individual Reports refer to a set of features designed to enable access to some of the EPE reports via ePortal. Currently it is only available for Singapore versions and only Laser pay slip format and tax forms. The structure of the feature is the same, meaning that the steps are similar.

Generating e-Individual Reports

There are several ways to create the data for ePortal.

� Select the required options during report preview.

� Use a preset report configuration.

There is no uploading required by payroll administrator or the ePortal administrator. Upon generation, the tax form is available immediately.

Behind-the-scenes

The primary stage is to generate the report into a set of tables inside the EPE database.

Employee Access

Step 5: Reports

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When accessed, the pay slip or tax form is downloaded as a Portable Document Format (PDF)*. After generating the reports for ePortal, an employee can access them under the Services menu.

Users will require a PDF reader software, e.g. Adobe Acrobat Reader, in order to view or print the forms. If you do not have a PDF reader, you can download a full featured PDF reader from http://www.adobe.com (~22.3mb) or a simpler version from http://www.foxitsoftware.com (~2.1mb). Do note that these links are provided as a convenience. Questions regarding these software should be directed to the company that makes it.

To preview the tax forms and generate for ePortal

1 First, select the report

a. In the Income tax module, click on the Step 5 : Reports tab.

b. Click on the Standard Report button. The Standard Report window appears.

c. Select the report you require.

d. Set the paper option to Blank Paper.

2 Next, select the configuration.

a. Click on the Preview button.. The Report Preview Option window appears.

b. Select the option Preview & Generate. Additional options appear.

c. Set 'ePortal' for Output To.

d. Select the check box Delete Report Before Insert.

3 Finally, generate the report.

a. Click on the Process button.


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Report configuration window

As part of the e-Individual Reports feature, this is for managing preset report configuration settings. This is the same for both pay slips and eTax.

For pay slip

For tax forms

The following table contains additional information on the fields available on the Report Configuration window.

Step 5: Reports

49

Field Description

Report ID Display only. For internal use.

It should match the report you have selected, be it a pay slip format or tax form.

Report Config ID A unique name to identify the report configuration. Names that begin with underscores are reserved for default configurations.

Default configuration This check box is display only. Default configurations have this check box selected.

Advance Query ID The configuration can be linked to a query. This is the usual query created via the Query Setup.

Description Blank space for describing the purpose of this configuration ID.

File type Display only. Currently only PDF format is available.

Summary Level For income tax report, only grouping by employee is available.

Individual Report Select this check box. This prints one form per employee.

Output To Selecting file causes the report to be saved in the directory set in the File path.

Selecting ePortal puts the report in a reserved section of the EPE database. This section is accessed by the ePortal when the employee attempts to retrieve the tax forms.

File path Available if Output To is set to File. A local or network location to save the file.

Delete Report Before Insert Available if Output To is set to ePortal. This deletes the previously generated tax form.

To create a eTax report config for ePortal

1 First, access the feature.

a. In the Income tax module, Click on the Step 5 : Reports tab.



50

c. Click on the Advance button in the lower right corner. The Advance button is now replaced by additional options.

d. Clicking on the three-dots (...) button next to the Config ID opens the Report Configuration window.

2 Next, select the target report, for example IR8A*.

3 Finally, create the configuration

a. Click on the three-dots (...) button next to Config ID. The Report Configuration window appears.

b. Click on the New button.

c. Type in a unique name for the Report Config ID.

d. Set the Summary level as employee.

e. Select the Individual Report check box†.

f. Set the output to as ePortal.

g. Click on the Save button.

h. Click on the Apply button to use this configuration.

* The report configurations are filtered according to the tax form selected. Any new configuration is linked to the report you have selected.

† Important, otherwise all the tax forms will be printed into one file.

To use a report configuration

1 First, select the report

a. In the Income tax module, Click on the Step 5 : Reports tab.


c. Select the report you require.

d. Set the paper option to Blank Paper.

2 Next, select the configuration.

a. Click on the Advance button in the lower right corner of the Standard Report window.

b. Select the Config ID.

3 Finally, generate the report.

a. Click on the Generate button.

Step 6: e-Submission

For companies under the IRAS Auto-Inclusion Scheme, this feature will generate the necessary submission file containing all the data listed in the forms.

There are now two ways of submitting (1) IRAS direct eSubmission and (2) PATLine submission by Crimson Logic.

IRAS direct eSubmission

IRAS eSubmission refers to a direct submission of the tax data to the Inland Revenue Authority of Singapore.

The files are automatically named. The following table contains samples of what these would look like.


51

Form Filename

IR8A Original 2008eIR8ACUR(O).txt

IR8A Amendment 2008eIR8ACUR(A).txt

Supplementary IR8A Original 2008eIR8ASUP(O).txt

Supplementary IR8A Amendment 2008eIR8ASUP(A).txt

IR8S Original 2008eIR8S(O).txt

IR8S Amendment 2008eIR8S(A).txt

Appendix 8A Original 2008eA8A(O).txt

Appendix 8A Amendment 2008eA8A(A).txt

Appendix 8B Original 2008eA8B(O).txt

Appendix 8B Amendment 2008eA8B(A).txt

To generate an IRAS direct eSubmission file

1 Click on the Step 6: e-Submission tab.

2 Click on the IRAS Direct eSubmission button. The IRAS Direct eSubmission window appears.

3 Select the type of tax form, employer ID and year.

4 Set the additional options.

� Original-For first time submission

� Amendment-For generating amendments to original submission.


52

5 Click on the Preview button. After generating the file, you will be prompted to save the file.

6 Click on the Save button. The file name is generated automatically.

To submit the IRAS file online

1 Start your webrowser and type in the address http://mytax.iras.gov.sg. The main page will appear.

2 Select the option 'I am logging in for "My Organization's/ Business' Tax matters".

3 Click on the SingPass button or IRAS PIN button depending on what you have. The next page will appear.

4 Select the Organisation ID type.


53

5 Type in the Organisation Tax Reference number.

6 Click on the Login button.

7 Select "e-Submission" from the menu on the side. The next page will appear.

8 Select "Employment Income" for e-Submission.

9 Click on the link Upload File. A file dialog will appear.


54

10 Select the file you have generated from EPE.

11 Click on the Upload button.

Note: Maximum file size allowed for uploading is 10 megabytes per file.

PATLine Submission

If you are using the submission service by Crimson Logic use this method. There are default names for each type and the following table contains some samples.

Form Filename

IR8A Ir8acur.E08

Supplementary IR8A Ir8asup.E08

IR8S Ir8s.E08

Appendix 8A App8A.E08

Appendix 8B App8B.E08

To generate a PATLine submission file

1 Click on the Step 6: e-Submission tab.

2 Click on the PATLine Submission button. The PATLine Submission File window appears.

3 Select the type of tax form, sorting order and employee type.

4 Set the additional options (if applicable)

a. Current /Supplementary IR8A-Exclude Zero amount records

b. IR8S-(a) Income exceeds 76,500 (b) Excess CPF contribution (c) CPF for employees posted overseas (d) IR8S Indicator (e) Additional wage > 40% of ordinary wage

5 Click on the Preview button. The data will appear on screen.

6 Click on the Save to File button. A Save dialog will appear. There are separate default names for each type.

7 Click on the Save button. You can submit these files at the PAT website (http://pat.com.sg).

Note: For PATLine submission, system will only generate files with both indicators for (o) original. Amendments if any has to be done on the PATLine web application by creating an amendment batch for the relevant report and enter the necessary details.


55

To submit the PAT files online

1 Start your web browser and type in the address www.pat.com.sg. The main page will appear.

2 Log in with given ID & Password.


56

3 Select IRAS Submissions and the type of form and then select to "Upload". The next page will appear.

4 To check submission status, select "Upload Status" to get the screen displayed as follows.


57

5 To print Error Listing, select the option Reports and then Upload Error Listing. Select the message type either IR8A, IR8S, Appendix 8A, or Appendix 8B. Specify the submission date range for the error listing(s) to be retrieved.

Note: For more information on uploading with PAT, refer to the user manual from Crimson Logic.

PATLine error messages

When uploading the eSubmission file, you may have encountered error messages. Below are explanations for common errors, and steps to correct them.

Error message Description/resolution

NRIC must contain 7 numbers, begin and end with an alphabet exclusively.

In this case, there are two possibilities.

• The NRIC was keyed in wrongly. The NRIC should contain 7 digits beginning with the prefix 'S' or 'T' and end with an alphabet.

Action: Print a copy of the Payee ID Report (Reports > IRAS ASCII File) and check through all the employees' NRIC no. Make the necessary changes.

• Payee's ID Type was not assigned correctly.

Action: Click Amendment > IRAS Line to make the necessary changes

UBN Set No. 1 Error IRA8A - UNB Grp 0. This is not IRA8A, error is IR8S!

It is possible you are using the wrong file. In the example above, error message indicates the eSubmission file is IR8S is being imported into Appendix 8A.

Action: Check your selection and eSubmission file.

UNB Set No. 1. More than 10 lines of error are encountered

You will see this if there are more than 10 errors with the file.

Action: Generate the Validation report to check through which mandatory information that is required but have been left out or for any erroneous data in the ASCII file.


58

ROC Checkdigit is incorrect The Employer Tax Ref. Number in EPE does not match the Payer's ID in Crimson Logic's database (under option company profile). e,g NAD Grp0, Invalid Employer ID. Type is 8 error is 412345678C.

Two possibilities arise.

• The Employer Tax Reference Number was keyed in incorrectly

Action: In the Income Tax module, make the changes (Setup 1: Employer Setup). Regenerate the eSubmission file and resubmit.

• The Payer's ID was keyed in incorrectly in the Crimson Logic PATLine program.

Action: Refer to Crimson Logic manual on making changes to the Payer's ID.

Date of Ex. Of Option ... Affecting Appendix 8B, check the dates declared, granted, exercised and so on.

Total Gross Amount of Stock ... does not tally with computed amount ...

When an error similar to Total Gross Amount of Stock Option Gains (Section A+B+C) -10000 does not tally with the computed total amount 30316 appears

Action: Check 'MOA' segments with qualifiers 319, 339 and 601.

Action: Recheck the keyed in amounts.

Negative value must be placed in the front

The value has exceeded the maximum length (9 integers 2 decimals)

-OR-

The negative sign must be placed in the front e.g. -123456789.12 and not 123456789.12-

Line Grp1 (Len=6) NAD Grp 1. Invalid employee ID, error is ID ...

The identity number and payee ID type does not match.

Action: Step 3: Modify IR8A; Details tab. Check that the identity number and ID type are correct (see Modify IR8A (on page 31)).

Note. To view errors encountered during the upload process, click Reports > Upload Error Listing and select accordingly. A listing will appear, click on each link to view details of the error.

59

Income Tax Processing (monthly)

This chapter is about the IR21 forms. If there are employees for whom IR21 applies, you might want to include IR21 as part of your monthly procedures. Though you may not use it all the time, if it is part of your normal procedure you are less likely to forget it.

In This Chapter

Tax clearance: IR21............................................................59 Overview...........................................................................60 Modify IR21 .......................................................................62

Tax clearance: IR21

IR21 refers to a set of tax forms to be generated for employees leaving Singapore after cessation of employment. The main purpose is tax clearance and only apply to non-Singaporeans.

The following information only serve as a guide. You are to check with IRAS on the latest information regard the IR21 forms. There are several more specific conditions and examples in the IR21 explanatory notes.

In Easy Pay, the IR21 can be generated under the following conditions.

� The employee is terminated within the current year

� The current residence status record is "FW", "EP" or "PR"

� The employee does not have any IR8A, IR8S, Appendix 8A, Appendix 8B records in the current year.

C H A P T E R 3


60

Overview

The IR21 is a cross module feature that begins with the some set up in the Income tax module. The following illustration is an overview of the process you may be using.

To process an employee's IR21 form

1 In the Core module,

a. From the menu, select Modules and then Employment details. The Employment Details window appears.

b. Set the cessation date and code.

c. Click on the Save button.

2 In the Payroll module,

a. From the menu, select Pay Processing and then Process Pay.

-OR- Select Pay Processing and then Pay Record.

b. Depending on your current pay period cycle, use either the Initialise pay record or New Pay record, process the employee's pay for the current pay period.

c. Check that all payments have been captured in the pay records before proceeding to the next step.

3 In the Income Tax module

a. Click on the Step 1: Setup tab.

b. Check that the dates in the global settings are correct.

c. Check that the IR21 fields in the Employer Setup are filled in.

4 Click on the Step 2: Processing tab.

Overview

61

a. Click on the Process IR21 button. The Process Income window appears.

Note. If the earlier settings are correct, you should be able to see the employee's name. If the names are not there, check the cessation dates and that the correct tax year is selected.

b. Select the IR21 and IR8S option.

c. Set the employer ID.

d. Select the employee.

e. Click on the Confirm button.

� If required, create the forms for Appendix 1, 2, and 3 as well.

f. Click on the Step 2: Processing tab. Click on the View IR21 button. The Income Tax Records window appears, but is only loaded with IR21 data.

5 Click on the Step 5: Reports tab.

a. Click on the Standard Report button. The Standard Report window appears.


62

b. Select IR21 from the list of report types.

The report option pane is now loaded with the IR21 available options.

c. Click on the Preview button. The report appears on screen.

d. To print, click on the printer button (<epe_b_printer>) in the upper left corner.

Note. For employers under online submission, currently in EPE there is no submission data generator. You need to print out the IR21 form and use this both as a guide and a record to fill out the IR21 online.

Modify IR21

The IR21 details of an employee is edited mainly via the IR21 Setup window.

Modify IR21

63

It consist of several tabs. On most of the tabs, the fields are the same as for the IR8A. The exception is the IR21 tab.

The following table contains additional information on the fields available on the IR21 tab.

Field Description

Type of IR21 form Original refers to first submissions.

Date of Arrival Date of arriving in Singapore.

Date of Departure Date of leaving Singapore.

Date Resignation Tendered The date the staff has submitted the resignation notice.

Give reasons if less than one month's notice is given ....

Refer to the IR21 explanatory notes.

Amount of Monies Withheld Pending Tax Clearance

Money due to the employee but withheld.

Amount of Last Salary Paid

Period applicable for Last Salary Paid

Required. For example, Matt Rampit has a wage of $1700.00 in January, resigns in the middle of February 2008, then the Amount would be around $850.00 and the Period would be January 2008.

Give reasons for not withholding monies ...

Refer to the IR21 explanatory notes.

Name of New Employer If known.

Tel No of New Employer If known.

Effective Date of Mailing Address Employee's mailing address.

Unexercised ESOP/ESOW granted before 1 Jan 2003

Select this check box if the employee has unexercised share options granted under ESOP or ESOW before Jan 2003.

Unexercised ESOP/ESOW granted after 1 Jan 2003

Select this check box if the employee has unexercised share options granted under ESOP or ESOW after Jan 2003.

Has Benefits-in-kind (from Appendix 1)

Set on the Income: Others (d) tab. Select this check box if it applies.

Spouse's Nationality Nationality of the employee's spouse

65

Preparing for bonus processing

This chapter contains extracts from the payroll module regarding bonus processing.

In This Chapter

Bonus Processing................................................................65 Report Shortcuts ................................................................70 Report samples ..................................................................71 Clear Terminated staff (Optional) .........................................73

Bonus Processing

Bonuses are inserted as pay elements. This means bonuses can be processed using several methods.

� Insert as a pay element (tools method)

� New Pay Record Method

� Initialise Method

In all three methods the bonus is inserted as a free method pay element. Both the New Pay Record Method and the Initialise Pay Period Method results in a separate pay record named Bonus pay containing the pay element you have selected.

Process bonus - with normal pay

This is inserting a bonus pay element into the Normal Pay record using the Tools method.

C H A P T E R 4


66

Process bonus - after normal pay

This is the New Pay Record method with Bonus as the record type.

Process bonus - before normal pay

This is the Initialise Pay Period Method with Bonus Pay as record type.

Bonus Parameters

The Bonus Pay parameters are options linked to a identity code for reporting purposes.

The following table contains additional information on the fields on the Pay Process Wizard with Bonus Pay loaded.

Field name Description

Bonus report ID Required. A report ID serves two purpose (1) storing parameters (2) reporting payments made. Any change in the existing ID will result in previous data (for the report) being lost.

Description Optional. Additional information on this bonus.

Bonus payment Period Optional. The validity period for this bonus.

Declared Date Required. The declaration date for taxation purposes.

General tab

The following table contains additional information on the General tab for the Process Pay wizard with Bonus loaded.

Bonus Processing

67

Field Description

Trial Run Optional. No bonus records are inserted. It allows you to preview the bonus calculation.

Bonus factor Required.

Employment Details bonus factor. Uses the employee specific bonus factor. (Modules > Pay details). Use this if you have different factors for each employee.

System Defined Bonus factor. Select this option and type in the bonus factor in factions, i.e. 0.25 as 25%.

Appraisal Bonus factor. Linked to HR Module’s appraisal records. Employee specific.

To include for terminated employees

Optional. Include employees whose cessation dates are within the bonus payment period.

To include for future terminated employees.

Optional. Include employees whose cessation dates are later the bonus payment end-period.

To include for not confirmed employees

Optional. Include employees who have not been confirmed within the bonus payment period.

Round at final amount Optional. Applicable for multiple bonus payments.

CPF Deduction Optional. Select this check box to allow for CPF deduction for the bonus within the current sub period.

Bonus Wage tab

The following contains additional information on the Bonus Wage tab.


68

Example

Bonus Payment Period: Jul 2007 to Jun 2008.

Field Description

Previous Total Wage within Payment Period

Within the bonus payment period, use the previous total wage for bonus calculation.

In the example, this would be $1500.

Current total wage Use the current total wages for bonus calculation

In the example, this would be $1600.

Current bonus wage Current total wage plus any bonus pay elements (i.e. with property “Subject to bonus”).

Fixed wage Set a fixed wage for bonus calculation.

Average total wage over payment period

Within the bonus payment period, the average total wage is computed and used in the bonus calculation.

Paid total wage:

(a) July 2007 to Dec 2007 = 1500*6 = 9000.00

(b) Jan 2008 to June 2008 = 1600*6 = 9600.00

Average Total wage = (9000 + 9600)/12 = 1550.00

Average bonus wage over payment period

Average total wage plus bonus pay elements (i.e. with property “Subject to bonus”).

Bonus Processing

69

Prorate factor tab

The following table contains additional information on the fields available on theProrate Factor tab.

Field Description

Employee Service Period Prorate by the working months within the bonus payment period.

BonusService Months

12Bonus

factorSalary

Service period cut off day – Determine the cut-off day to account for bonus within that period.

For example, ‘15’. Employees hired from the 1st to 15th of that month will be included. Employees hired from 15th to the end will not be included.

Cut off period as service month – Determine whether the cut-off period constitutes as 1 service month, or 0.5 months, or any other ratio.

Employee Working Day Prorate by the number of working days within the bonus payment period.

BonusDays worked

Total working days for the yearBonus

factorSalary

OR

BonusDays worked Prorate factors

Total working days for the yearBonus

factorSalary

Where prorate factors consist of hire date,

cessation date, no pay leave and so on.

Calendar Days Prorate by the calendar days within the bonus payment period.

BonusCalendar days

365Bonus

factorSalary

OR

BonusCalendar days Prorate factors

365Bonus

factorSalary


70

Appraisal tab

This tab is visible only if Appraisals in the HR Module is used.

Field Description

Appraisal date range Required. The period to extract the appraisal records.

Method for extracting Bonus factor. Required.

Latest bonus Factor. Use the bonus factor in the appraisal record that contains the most recent date.

Average bonus factor. Calculate the average bonus factor amongst the appraisal records within the appraisal date range.

Highest bonus factor. The highest bonus factor amongst the appraisal records.

Lowest bonus factor. The lowest bonus factor amongst the appraisal records.

Appraisal type Optional. State the appraisal types to use. Only those appraisal types that are marked for bonus processing will appear.

Changing Bonus amounts

On the pay record, bonus is represented as a pay element. Use the same methods as for changing pay elements.

Report Shortcuts

This section contains report shortcuts of the topics covered so far.

To print a Bonus Processing Report

1 Select Reports > Analysis Reports > Bonus Processing Report. The Bonus Processing Report window appears.

2 Click on the Preview button. The report appears on screen.


Report samples

71

Report samples

Bonus Processing Report

Reports > Analysis Reports > Bonus Processing Report


72

Payroll summary report (on bonus pay)

Reports > Analysis Reports > Payroll Summary Report

Clear Terminated staff (Optional)

73

Clear Terminated staff (Optional)

If you have a huge number of records of personnel who have left, you may want to remove them. Before you do so, make sure you have a working backup. You will need to perform this in the Core module.

For those of you who familiar with EPE, you need to

� know which records to remove (Print cessation Report),

� filter out the records using a new query,

� remove the records (Mass delete).

The mass delete feature allows you to remove either Personal or Employment records.

Do note that employment records are linked to Personal records. Removing a Personal record will result in the removal of all employment records linked to that Personal record.

To remove employee records

1 In the Core module, print out the cessation report by selecting Reports then Cessation Report.

2 On the query toolbar, click Setup.

The Query Setup window will appear.

a. Click New. Give it a name.

b. Click on the Employment tab.

c. Set Cessation dates.

d. Click Save. Click Apply. The query is now in effect. The query toolbar display's this name. If it does not, select the query from the list.

3 Click Modules > Mass Delete. The Mass Delete window will appear.

4 At the top, select Personnel or Employment.

5 Select the records (cross check this with the cessation report).

6 Click Confirm. The record removal process will begin immediately.

75

Year end closing

This chapter covers topics on preparing your payroll database for the upcoming payroll year. It also signifies the end stage of the Year end process. Before you begin, check that you have a working backup of your database.

In This Chapter

Initialise calendar ...............................................................75 Public holidays ...................................................................76 Initialise Leave ...................................................................78 Initialise Medical year..........................................................80 Cost centre: New cost year..................................................80

Initialise calendar

Initialise New Year is necessary for each new payroll year. The purpose of this function is for EPE to recalculate working days and public holidays for the up coming year. This feature is placed under the Setup menu in the Core Module. You need to initialise the normal calendar before you initialise the calendars for employees on shift.

To initialise a calendar

1 Select Setup > Initialise New Year. The New Year Wizard window appears.

C H A P T E R 5

Year end closing

76

2 Click on the three-dots (...) button next to Step 1: Initalise Calendar. A Calendar Mass Initialisation window appears.

3 Select the Year.

4 Set the Operation to Initialise.

5 Select the Calendar ID.

6 Click on the Confirm button.

Note. Initialising the Shift Team Calendar and Shift Calendar follows similar steps.

To initialise a shift team calendar

1 From the menu, select Setup and then Initialise New Year. The New Year Wizard window appears.

2 Click on the three-dots (...) button for the Shift team Calendar. A Shift Team Calendar Mass Initialisation window appears.

3 Select the year.

4 Set the operation to Initialise.

5 Select the teams.


Public holidays

Public holidays are linked to a country through the Holiday Country ID. New holidays can be added and existing ones deleted. On the calendar, public holidays are marked with the letter ‘P’. Public holidays will affect leave application dates and wage calculation.

The following table contains additional information on the fields available on the Holiday Setup window.

Field Description

Holiday ID Name of the holiday. Can be existing, or user defined.

Date Date of the holiday.

Public holidays

77

Work day A holiday (0) can be set as a full workday (1), half-workday (0.5) or quarter workday (0.25). Pay will be calculated accordingly. A typical public holiday would be a paid work day, however this may vary if if you are defining your own holidays.

Leave day Similar to Work day, set the amount of leave to be deducted for the holiday. A typical public holiday would have a leave day of zero, meaning that if it falls within leave application, it is not counted.

Description Optional. A short description for the holiday.

The following figure is a visual summary of the preceding steps.

To create a new holiday record

1 Before you create new public holiday records, check that you have applied the latest public holiday database patch.

2 First, access the feature.

a. Select Setup > Calendar Setup. The View Calendar window appears.

-OR-

Click on the Calendar Setup button on the Query toolbar. The View Calendar window appears.

3 Next, select the country

a. Click on the three-dots (...) button next to the Calendar ID. The Calendar Setup window appears.

b. In the Holiday Country ID list box, select the country ID.

4 Finally, add the public holiday.

a. Click the three-dots (...) button. The Holidays Setup window appears.

b. Click on the New button.

c. Select the public holiday. If it is a new holiday, key in the name.

d. Set the date.

e. Set the work and leave day.

f. Click on the Save button.

Year end closing

78

Initialise Leave

Similar in concept to the work calendar, you will need to initiate the leave cycle for the new payroll year. However, since this is done once a year, you might want to check the leave settings and policies.

Checklist for leave initialisation

� Leave allocation tables (entitlement, forfeit)

� Leave type settings (brought forward, hour leave, and so on)

The above checklist is a guide.

To initialise leave

1 In the Leave module, select Leave Processing > Process leave. The Process Leave window appears.

-OR-

In the Leave module, click on the Process Leave button. The Process Leave window appears.

2 Click on the Initialise button.

a. After initialisation check the year here.

b. Initialise button.

The Leave Wizard window appears.

3 Select the leave policy.

Initialise Leave

79

4 Set the year.

5 Click on the Next button.

6 Change the leave type if required, otherwise leave it as ALL.

7 Click on the Next button.

8 Select the employees.


Year end closing

80

Initialise Medical year

You will need to initiate the new cycle for the medical year. This affects the medical claims limit for the upcoming new year.

To initialise a new year for medical claims

1 In the HR Module, select Setup > Medical Claim > Medical Claim Policy. The Medical Claim Policy window appears.

2 Click on the Cycle tab.

3 Click on the + button.

4 Set the From and To dates.

5 Key in the Amount limit for the cycle.

6 Click on the � button.

Cost centre: New cost year

There is no initialise or yearly cycle for the Cost centre as the cost centre cycle is tied to the payroll cycle. Unless you have changes in departments, cost conditions and so on in the new year.

Cost centre: New cost year

81

Report samples

This section contains samples of the reports and forms available in the Singapore Income tax module.

In this Section

IR8A form .........................................................................83 Supplementary IR8A form ...................................................84 IR8S form .........................................................................85 Appendix 8A ......................................................................86 Appendix 8B form...............................................................87 Summary report (Detail) .....................................................89 Summary report (Company) ................................................90 CPF Adjustment..................................................................91 IR21 form..........................................................................92 IR21 - Appendix 2 form ......................................................94 IR21 - Appendix 1 form ......................................................95 IR21 - Appendix 3 form ......................................................97 IR21 Summary Report (Detail).............................................98 IR21 Summary report (Company) ........................................99 Verification report - IR8A ....................................................100 Verification report - Supplementary IR8a ..............................102 Verification report - IR8S ....................................................104 Verification report - Appendix 8A..........................................111 Verification report - Appendix 8b..........................................118 IRAS Identity Listing Report ................................................120

A P P E N D I X A

Report samples

83

IR8A form

Reports > Standard Report; Current IR8A

84 Income Tax Module 2008 User's Guide

84

Supplementary IR8A form

Reports > Standard Report; Supplementary IR8A

Report samples

85

IR8S form

Reports > Standard Report; IR8S


86

Appendix 8A

Reports > Standard Report; Appendix 8A

Report samples

87

Appendix 8B form

Reports > Standard Report; Appendix 8B


88

... Appendix 8B page 2

Report samples

89

Summary report (Detail)

Reports > Analysis Reports; Summary report (Detail)


90

Summary report (Company)

Reports > Analysis Reports; Summary report (Company)

Report samples

91

CPF Adjustment

Reports > Analysis Reports; CPF Adjustment


92

IR21 form

Reports > Standard Report; IR21

Report samples

93

... IR21 page 2


94

IR21 - Appendix 2 form

Reports > Standard Report; IR21 Appendix 2

Report samples

95




96

... IR21 Appendix page 2

Report samples

97




98

IR21 Summary Report (Detail)

Reports > IR21 Analysis Report; Summary Report (Detail)

Report samples

99

IR21 Summary report (Company)


100

Verification report - IR8A

Reports > Verification Report; IR8A

Report samples

101

... IR8A verification report page 2


102

Verification report - Supplementary IR8a

Reports > Verification Report; Supplementary IR8A

Report samples

103

... Supplementary IR8A verification report page 2


104

Verification report - IR8S

Reports > Verification Report; IR8S

Report samples

105

... IR8S verification report page 2 of 8


106


Report samples

107



108


Report samples

109



110


Report samples

111

Verification report - Appendix 8A

Reports > Verification Report; Appendix 8A


112

... Appendix 8A verification report page 2 of 7

Report samples

113



114


Report samples

115



116


Report samples

117



118

Verification report - Appendix 8b

Reports > Verification report; Appendix 8B

Report samples

119

... Verification report. - Appendix 8B page 2


120

IRAS Identity Listing Report

Reports > IRAS Identity Listing Report

IRAS Nationality code

This section contains the IRAS nationality code reference.

In this Section

A, B, C, D ..........................................................................121 E, F, G, H ..........................................................................122 I, J, K, L ............................................................................123 M, N, O, P..........................................................................124 Q, R, S, T ..........................................................................126 U, V, W, X, Y, Z..................................................................127

A, B, C, D

Nationality description Country Name Code

AFGHAN DEM REP OF AFGHANISTAN 351

ALBANIAN ALBANIA 201

ALGERIAN ALGERIA 401

AMERICAN UNITED STATES OF AMERICA 503

AMERICAN SAMOA AMERICAN SAMOA 721

ANDORRAN ANDORRA 153

ANGOLAN ANGOLA 451

ANGUILLA ANGUILLA 670

ANTIGUA ANTIGUA 641

ARGENTINIAN ARGENTINA 601

ARMENIAN ARMENIA 217

ARUBA ARUBA 625

AUSTRALIAN AUSTRALIA 701

AUSTRIAN AUSTRIA 131

AZERBAIJANI AZERBAIJAN 218

BAHAMAS BAHAMAS ISLAND 642

BAHRAINI BAHRAIN 371

BANGLADESHI PEOPLE REP OF BANGLADESH 352

BARBADOS BARBADOS 643

BELARUSSIAN BELARUSSIAN SSR 211

BELGIAN BELGIUM 101

BELIZE BELIZE 644

BENIN BENIN 452

BERMUDA BERMUDA 645

BHUTAN BHUTAN 353

BOLIVIAN BOLIVIA 646

BOTSWANA BOTSWANA 453

A P P E N D I X B


122

BOUVET ISLAND BOUVET ISLAND 139

BRAZILIAN BRAZIL 602

BRITISH UNITED KINGDOM 110

BRITISH INDIAN OCEAN BRITISH INDIAN OCEAN TERRITORY 708

BRITISH VIRGIN ISLND BRITISH VIRGIN ISLANDS 671

BRITISH, CHANNEL ISLAND ISLAND OF GUERNSEY, CHANNEL ISLANDS, U.K.

113

BRUNEIAN BRUNEI 302

BULGARIAN BULGARIA 202

BURKINA FASO BURKINA FASO 454

BURUNDI BURUNDI 455

CAMBODIAN KAMPUCHEA, DEM 312

CAMEROON CAMEROON 456

CANADIAN CANADA 501

CAPE VERDE CAPE VERDE 457

CAYMAN ISLANDS CAYMAN ISLANDS 647

CENTRAL AFRICAN REP CENTRAL AFRICAN REP 458

CHADIAN CHAD 459

CHILEAN CHILE 603

CHINESE PEOPLE'S REPUBLIC OF CHINA 336

CHRISTMAS ISLANDS CHRISTMAS ISLANDS 709

COCOS KEELING ISLAND COCOS (KEELING) ISLAND 710

COLOMBIAN COLOMBIA 604

COMOROS COMOROS 460

CONGO CONGO 461

COOK ISLANDS COOK ISLAND 722

COSTA RICAN COSTA RICA 648

CROATIAN CROATIA 232

CUBAN CUBA 621

CYPRIOT REP OF CYPRUS 372

CZECHOSLOVAK CZECHOSLOVAKIA 203

CZECK CZECH REPUBLIC 234

DANISH DENMARK 102

DJIBOUTI DJIBOUTI 407

DOMINICA DOMINICA 649

DOMINICAN REPUBLIC DOMINICAN REPUBLIC 622

E, F, G, H


EAST TIMOR EAST TIMOR 307


123

ECUADORIAN ECUADOR 605

EGYPTIAN EGYPT 402

EQUATORIAL GUINEA EQUATORIAL GUINEA 462

ERITREA ERITREA 410

ESTONIAN ESTONIA 213

ETHIOPIAN ETHIOPIA 408

FAEROE ISLANDS FAEROE ISLANDS 141

FALKLAND IS FALKLAND ISLAND (MALVINAS) 651

FIJIAN FIJI 702

FILIPINO REP OF PHILIPPINES 305

FINNISH FINLAND 132

FRENCH FRANCE 103

FRENCH GUIANA FRENCH GUIANA 652

FRENCH POLYNESIA FRENCH POLYNESIA 723

FRENCH SOUTHERN TERR FRENCH SOUTHERN TERRITORY 711

GABON GABON 463

GAMBIAN GAMBIA 464

GEORGIA GEORGIA 216

GERMAN FEDERAL REPUBLIC OF GERMANY 104

GHANAIAN GHANA 421

GIBRALTAR GIBRALTAR 154

GREEK GREECE 105

GREENLAND GREENLAND 142

GRENADIAN GRENADA 653

GUADELOUPE GUADELOUPE 654

GUAM GUAM 724

GUATEMALA GUATEMALA 655

GUINEA REP OF GUINEA 465

GUINES BISSAU REP OF GUINES-BISSAU 466

GUYANA GUYANA 656

HAITIAN HAITI 657

HEARD MCDONALD ISLND HEARD AND MCDONALD ISLAND 712

HONDURAN HONDURAS 658

HONG KONG HONG KONG 332

HUNGARIAN HUNGARY 205

I, J, K, L


ICELAND ICELAND 133


124

INDIAN INDIA 354

INDONESIAN REP OF INDONESIA 303

IRANIAN ISLAMIC REP OF IRAN 373

IRAQI REP OF IRAQ 374

IRISH IRELAND 106

ISLE OF MAN ISLE OF MAN 672

ISRAELI ISRAEL 375

ITALIAN ITALY 107

IVORY COAST COTE D'IVOIRE 422

JAMAICAN JAMAICA 659

JAPANESE JAPAN 331

JORDANIAN HASHEMITE KINGDOM OF JORDAN 376

KAZAKHSTAN KAZAKHSTAN 221

KENYAN KENYA 423

KIRGHIZ KYRGYZSTAN 219

KIRIBATI KIRIBATI 725

KUWAITI THE STATE OF KUWAIT 377

LAOTIAN PEOPLE DEM REP OF LAOS 313

LATVIAN LATVIA 214

LEBANESE LEBANON 378

LESOTHO KINGDOM OF LESOTHO 467

LIBERIAN LIBERIA 424

LIBYAN LIBYA A JAMAHIRIYA 403

LIECHSTENSTEIN LIECHSTENSTEIN 138

LITHUANIA LITHUANIA 215

LUXEMBOURG LUXEMBOURG 108

M, N, O, P


MACAO MACAU 335

MACEDONIA REPUBLIC OF MACEDONIA 210

MADAGASCAR MADAGASCAR 425

MALAWI MALAWI 468

MALAYSIAN MALAYSIA 304

MALDIVIAN REP OF MALDIVES 355

MALI MALI 469

MALTESE MALTA 155

MARSHELLES MARSHALL ISLANDS 735

MARTINIQUE MARTINIQUE 661


125

MAURITIAN MAURITIUS 426

MAURITINEAN MAURITANIA 470

MEXICAN MEXICO 606

MICRONESIA MICRONESIA 736

MOLDOVIAN MOLDOVA 222

MONACO MONACO 143

MONGOLIAN MONGOLIAN PEOPLE REP 338

MONTSERRAT MONTSERRAT 662

MOROCCAN MOROCCO 404

MOZAMBIQUE MOZAMBIQUE 427

MYANMAR MYANMAR 311

NAMIBIA NAMIBIA 471

NAURUAN NAURU 703

NEPALESE NEPAL 356

NETHERLANDS NETHERLANDS 109

NETHERLANDS ANTILLES NETHERLANDS ANTILLES 623

NEW CALEDONIA NEW CALEDONIA 704

NEW ZEALANDER NEW ZEALAND 705

NICARAGUAN NICARAGUA 660

NIGER NIGER 472

NIGERIAN NIGERIA 428

NIUE ISLAND NIUE 726

NORFOLK ISLAND NORFOLK ISLAND 713

NORTH KOREAN DEM PEOPEPLE REP OF KOREA 337

NORTHERN MARIANA ISL NORTHERN MARIANA ISLANDS 734

NORWEGIAN NORWAY 134

OC IN OTHER AFRICA O C IN OTHER AFRICA 499

OC NORTH AMERICA OC NORTH AMERICA 509

OC OCEANIA OC OCEANIA 799

OMAN OMAN 379

Others Others 999

PAKISTANI PAKISTAN 357

PALAU PALAU 737

PALESTINIAN PALESTINE 386

PANAMANIAN PANAMA 624

PAPUA NEW GUINEA PAPUA NEW GUINEA 706

PARAGUAY PARAGUAY 607

PERUVIAN PERU 608

PITCAIRN PITCAIRN 727

POLISH POLAND 206

PORTUGUESE PORTUGAL 111


126

PUERTO RICAN PUERTO RICO 502

Q, R, S, T


QATAR QATAR 380

REUNION REUNION 429

ROMANIAN ROMANIA 207

RUSSIAN RUSSIA 223

RWANDA RWANDA 473

SAINT KITTS NEVIS SAINT KITTS NEVIS 663

SALVADORAN EL SALVADOR 650

SAMOAN WESTERN SAMOA 707

SAN MARINO SAN MARINO 144

SAO TOME PRINCI SAO TOME AND PRINCIPE 474

SAUDI ARABIAN SAUDI ARABIA 381

SENEGALESE SENEGAL 475

SEYCHELLES SEYCHELLES 476

SIERRA LEONE SIERRA LEONE 477

SLOVAK SLOVAK REPUBLIC (SLOVAKIA) 235

SLOVENIAN SLOVENIA 233

SOLOMON ISLANDS SOLOMON ISLANDS 728

SOMALI DEM REP SOMALI 409

SOUTH AFRICAN SOUTH AFRICA 478

SOUTH KOREAN REP OF SOUTH KOREA 333

SPANISH SPAIN 112

S'PORE CITIZEN SINGAPORE 301

S'PORE PR SINGAPORE 300

SRI LANKAN SRI LANKA 358

ST HELENA ST HELENA 484

ST LUCIA SAINT LUCIA 664

ST PIERRE MIQUELON ST PIERRE ET MIQUELON 505

ST VINCENT SAINT VINCENT AND THEGRENADINES 665

SUDANESE SUDAN 405

SURINAME SURINAM 666

SVALBARD JAN MAYEN SVALBARD JAN MAYEN ISLANDS 135

SWAZI SWAZILAND 480

SWEDISH SWEDEN 136

SWISS SWITZERLAND 137

SYRIAN SYRIAN ARAB REP 382


127

TADZHIK TAJIKISTAN 224

TAIWANESE TAIWAN 334

TANZANIAN TANZANIA 430

THAI THAILAND 306

TOGO TOGO 481

TOKELAU ISLANDS TOKELAU 729

TONGA TONGA 730

TRINIDAD AND TOBAGO TRINIDAD AND TOBAGO 667

TUNASIA TUNISIA 406

TURK TURKEY 152

TURKMEN TURKMENISTAN 225

TURKS AND CAICOS IS TURKS AND CAICOS ISLANDS 668

TUVALU TUVALU 731

U, V, W, X, Y, Z


U S MINOR ISLANDS U S MINOR OUTLAYING ISLANDS 504

UGANDIAN UGANDA 431

UKRANIAN UKRAINIAN SSR 212

UNITED ARAB EM UNITED ARAB EMIRATES 383

URUGUAY URUGUAY 609

UZBEK UZBEKISTAN 226

VANUATU VANUATU, REP OF (NEW HERBRIDES) 732

VATICAN CITY VATICAN CITY STATE (HOLY SEE) 145

VENEZUELAN VENEZUELA 610

VIETNAMESE SOC REP OF VIETNAM 314

VIRGIN ISLANDS US VIRGIN ISLANDS (U.S) 669

WALLIS AND FUTUNA WALLIS AND FUTUNA 733

WESTERN SAHARA WESTERN SAHARA 479

YEMINI DEMOCRATIC YEMEN 385

YEMINI REP OF YEMEN 384

YUGOSLAV YUGOSLAVIA 209

ZAIRAN REP OF ZAIRE 482

ZAMBIAN ZAMBIA 432

ZIMBABWEAN ZIMBABWE 483

OTHERS OTHERS 999

Frequently Asked Questions

Easy Pay Enterprise- Initialise New Year

Q1. How do I roll over my payroll to year 2009?

Backup the current database first before you initialise to the year 2009. The backup option is found in EPE Control. Then, go to EPE Core | Setup | Initialise New Year Setup. For step-by-step details, please refer Initialise calendar (on page 75) for the topic on Initialise New Calendar for Payroll & Leave.

Q2. Is it necessary to backup the 2008 database before processing the

payroll for 2009?

Yes, always make a copy of your database before you move on to a new month or a New Year.

Q3. After roll over to payroll year 2009, how can I print Employee Pay History

for previous year?

This can be printed from the EPE Pay program | Reports | Analysis Report | Statistics Report. Ensure that you choose the From month: 1 To month: 12 Year as 2008.

Q4. After roll over to payroll year 2009, can I view/modify pay details of

previous year pay periods at the Modify Normal Pay?

Yes, you can. Go to EPE Pay | Pay Records. At the year field, select 2008. Then, select the pay period that you want to view / modify. If you need to modify, you will need to unlock the records, and do the necessary amendments. After amendments are completed, lock the records again.

IR8A Forms

Q5. What is the commencement date & cessation date, which will appear in

the IR8A form?

Our Income Tax program will extract all hire date as commencement date & Cessation date, if any, as Cessation Date, which fall within the payroll year 2008. These dates will be printed in the IR8A and IR8S Forms, and e-submission files, according to requirement in explanatory notes paragraph 3a from IRAS.

You can amend the dates, if required in Step 3: Modify | Current IR8A | Details.

Q6. Do I need to get an authorised signature on the pre-printed IR8A forms?

No. As the IR8A forms are computer generated, signature is not required according to IRAS. Only the printed name of authorised person and designation who is making the declaration are needed.

Q7. Does the employer need to seek approval from IRAS if the employer is

using an in-house software to prepare the IR8A forms?

The employer need not seek approval if the format of the Form IR8A/IR8S is similar to the one published by IRAS in the Government Gazette.

Q8. Is it necessary to give details of the amount of Gratuity/Retrenchment

benefits paid to employees?

Yes, with reference to the explanatory notes for Form IR8A and Appendix 8A from IRAS, item 10b), the employer has given breakdown details, under item d4 of Form IR8A, as below:

� Gratuity

� Compensation

� Notice Pay

� Ex-gratia payment

� Others (please state nature)

� Reasons for payment, and

� Basis of arriving at the payment

Employer is required to provide separate attachment if space provided is not sufficient.


129

Q9. How should Director's fees be declared in the IR8A Forms?

Director's fees will be regarded as having accrued to the directors on the date they are voted for approval at the company's Annual General Meeting (AGM).

The amount and the date of the AGM should be declared under Income Section in the form IR8A. The figure is derived from the Pay Element having the code property "Director Fee Code", OR the amount can be entered directly in Current IR8A under the Income section item IRAS in EPE Income Tax.

Example (a): If the Director's fees are voted and approved at the company's AGM in the year of 2008, these should be declared in the form IR8A for the year ended 31 Dec 2008. In EPE Income Tax the system will update automatically the pay elements that have "director fee" code property and declaration dated current year. You are allowed to enter the director fee amount Step 3: Modify | Current IR8A.

Example (b): For Director Fees declared in 2008 but paid in Jan 2009. These should be declared in year ended 31.12.2008. Ensure that the director fees paid out in year 2009 carries the declaration dates of year 2008 in the EPE Pay Module. In the Income Tax Module, the Global Setup has to be done correctly, i.e. "To include following year pay elements declared in current year until period [ ] has to be set. Refer to the figure below.

Q10. How do I extract a report of employee no and payee ID type?

From the menu, select Reports then IRAS Identity Listing.

IR8A - Bonus

Q10. What are Contractual and Non-Contractual Bonuses?

Contractual bonus is bonus payable in accordance with the terms of a contract of service.

Example: AWS (Annual Wage Supplement) or 13th month bonus provided under the contract of service, for services rendered in the year 2008 should be declared in the Form IR8A for the year ended 31st Dec 2008 even if it is paid in January 2009.

Non-contractual bonus is bonus payable at the discretion of the employer and should be treated as the income in the year in which the employer decides to pay the bonus.

Example:

Non-

contractual

bonus for the

year

Date of

Decision

Date of

payment

Declared in the

Form IR8A for

the year Ended

Type of IR8A

2007 Jan 2008 Feb 2008 31-Dec-2008 Current IR8A

2008 Dec 2008 Feb 2009 31-Dec-2008 Current IR8A

2007 Dec 2007 Feb 2008 31-Dec-2008 Supplementary IR8A

2008 Jan 2009 Feb 2009 31-Dec-2009 Current IR8A

NOTE: see Bonus declaration settings (Figure Illustration).

The following examples illustrate some sample settings for Global ID to handle the various bonuses.

NOTE: Prepare a separate supplementary Form IR8A for the year ended 31st Dec 2007 for any non-contractual bonus declared payable in the year 2007 but paid in year 2008.

IR8S Forms

Q11. What is IR8S report?

Form IR8S shows details of the employer and employee's CPF contribution. Some of the items printed in this form are:

� January to December ordinary wages, additional wages and CPF contributions for employee with annual wage (This print out can be attached with the actual IR8A form for submission to Inland Revenue Authority)

� Voluntary contribution made to CPF, which is not compulsory under the CPF Act.


130

� Refunds claimed / to be claimed with respect to excess CPF contributions made during the year 2008.

Q12. When is it necessary to prepare IR8S for the employee?

With reference to explanatory notes paragraph 4 from IRAS for completion of Form IR8S by an employer, it necessary if any of the following applies:

� CPF contributions made in Year 2008 are more than the compulsory contributions under the CPF Act;

� CPF contributions exceed the contributions made on the overall income of $76,500;

� CPF contributions made are not compulsory under the CPF Act, example, employer contributing CPF for foreign employees or director's fee, which is considered as voluntary contribution. The voluntary contribution will have to be indicated under Section B of Form IR8S.

� Claimed / to be claimed excess CPF contributions from CPF Board. The details will have to be entered in the Section C of the Form IR8S.

Q13. Where can I check the excess / voluntary CPF contribution?

IR8S or CPF Adjustment reports show the variance amount between contributed to CPF Board and required by CPF Act.

Q14. Will the system pick up the claim/refund amount automatically in IR8S?

No. Users have to enter all claim amounts manually at the option Step 3:Modify > IR8S > Section C.

Q15. What to do for voluntary contribution to CPF in respect of overseas

posting?

For CPF contributions during overseas posting, the amount, if required, is to be keyed under EPE Pay at the option Process Pay | Contribution/Tax Summary. Enter the amount for Overseas Employee and Employer CPF. Please refer to Appendix C: Overseas Posting for further processing details.

If you have already processed his yearend record, you will have to recalculate the IR8S record for the amount to be updated in Section A of IR8A.

Appendix 8A

Q16. Can I change the value for items in Section 2, for instance furniture &

Fittings, in Appendix 8A?

Yes. Go to Step 4: Optional > Appendix 8A - Section 2, and click on the button "2a-2k". Then, click on the particular item you want to amend and enter the value at the Value column and click Save to save the record.

Q17. What is the amount to be declared as Annual Value / Rent paid by the

employer for place of Residence provided to the employee? How should the

value be declared if it is shared among employees?

The amount to be declared is the Annual Value (AV) of the place of Residence as shown in the Property Tax Bill.

If the "Place of Residence" is rented by the employer, and if AV is not available, the amount of rent paid by the employer should be declared.

If the employees share the place of Residence, AV/Rent paid should be apportioned according to the number of employees staying in the place.

The total value in Appendix 8A should be declared under item (d) Others (9) of the Form IR8A.

(For further details on computation of taxable value of accommodation, please refer to IRAS Explanatory notes - Details of Benefits-in-kind to be declared in Appendix 8A, point 14a & b.

General Income Tax Setup

Q18. What are the recommended checking reports I should print for Income

Tax declaration?

The reports under the Standard Reports & Analysis Reports. Example of common checking reports: Internal checking reports under Analysis Reports Summary Report (Detail). Thus can be compared against statistics report from payroll module.


131

Q19. How do I include CPF related to the items declared in Supplementary

IR8A?

In the Income Tax Module, go to SETUP à Special Operation, click on "Has Supplementary CPF". This option should be activated, if required, before the Income Tax Process is carried out.

Q20. Can I have different authorized persons making the declaration

reflected in the IR8A, IR8S, Appendix 8A, Appendix 8B?

Yes, you can do that. In Income Tax module, at the SETUP > Employer Setup, you can create different Employer ID, which can be later assigned to the employee's record.

Q21. How do I exclude selected pay items from the tax deduction?

In the EPE Pay module, ensure that you have assigned the code property as Non-Taxable to the pay element code at the option Setup | Pay Element Property.

Q22. Can I include commission meant for year 2008 paid out in Jan 2009 in

the Current IR8A for year 2008?

Yes this can be done. Ensure that the commission paid out in the payroll year 2009 carries the correct declaration date of year 2008 in the EPE Pay module. In the Income Tax Module, the Global Setup has to be done correctly, i.e. "To include following year pay elements declared in current year until period [ ] has to be set.

133

Index

A

A, B, C, D • 121

Additional notes-Pay elements paid or

declared in the previous year • 21

Adjusting for Overseas Posting (NOT

incidental) • 38

Analysis reports • 45

Appendix 8A • 40, 86

Appendix 8B • 43

Appendix 8B form • 87

Appraisal tab • 70

B

Bonus Parameters • 66

Bonus Processing • 65

Bonus Processing Report • 71

Bonus Wage tab • 67

C

Case 1 Bonus paid in tax year • 22

Case 2 Previous year bonus paid in tax year •

22

Case 3 Previous year bonus (declared) paid

in tax year • 23

Case 4 Partial undeclared previous year

bonus in the same pay period (same tax

year) • 24

Case 5 Undeclared previous year bonus

(different pay period) • 24

Case 6 Declared bonuses paid in the next

year • 25

Changing Bonus amounts • 70

Classification of Bonus Code • 8

Classification of Gratuity, Ex-Gratia, Notice

Pay and Commission • 10

Clear Terminated staff (Optional) • 73

Code Properties • 10, 12

Cost centre

New cost year • 80

CPF Adjustment • 91

Creating backups • 3

Current IR8A • 31, 58

D

Declaration Dates of Bonus and Other Pay

Elements • 9

E

E, F, G, H • 122

e-Individual Reports • 46

Employee Other Info • 15

Employee's Mailing Address • 16

Employer setup • 27

F

Figure illustration of various Bonus

Contributions • 22

Frequently Asked Questions • 128

G

General tab • 66

Getting ready for income tax • 2

Global setup • 20

I

I, J, K, L • 123

Income tax module • 19

Income Tax Processing • 19

Income Tax Processing (monthly) • 59

Initialise calendar • 75, 128

Initialise Leave • 78

Initialise Medical year • 80

Introduction • 1

IR21 - Appendix 1 form • 95



IR21 form • 92

IR21 Summary report (Company) • 99

IR21 Summary Report (Detail) • 98

IR8A form • 83

IR8S form • 85

IR8S Form • 36

IRAS direct eSubmission • 50

IRAS Identity Listing Report • 120

IRAS Nationality • 29

IRAS Nationality code • 121

M

M, N, O, P • 124

Modify IR21 • 62

O

Overall workflow • 1

Overseas Posting

General notes • 14, 37

Overview • 60

P

PATLine error messages • 57

PATLine Submission • 54

Payroll summary report (on bonus pay) • 72

Preparing for bonus processing • 65

Print Payroll Internal Checking Reports • 11

134 Index

Process bonus - after normal pay • 66

Process bonus - before normal pay • 66

Process bonus - with normal pay • 65

Prorate factor tab • 69

Public holidays • 76

Q

Q, R, S, T • 126

R

Report configuration window • 48

Report samples • 71, 82

Report Shortcuts • 70

S

Section A tab • 37

Section B / Section C tab and e-Submission

tab • 37

Standard Reports • 46

Step 1

Setup • 19

Step 2

Processing • 30

Step 3

Modify • 31

Step 4

Optional • 39

Step 5

Reports • 45

Step 6

e-Submission • 50

Step A-Adjusting the IR8S form • 38

Step B-Adjusting the IR8A form • 39

Summary report (Company) • 90

Summary report (Detail) • 89

Supplementary IR8A form • 84

T

Tax clearance

IR21 • 59

Things to do before tax processing • 8

To adjust the IR8S form for Overseas posting

• 39

To amend the Appendix 8A form • 40

To change employee's mailing address • 17

To check or change code property • 8

To configure employer setup • 29

To create a eTax report config for ePortal •

49

To create a global ID (Current IR8A) • 20

To create a new holiday record • 77

To display a list of generated tax records • 31

To edit the details on the IR8A form • 35

To generate a PATLine submission file • 54

To generate an IRAS direct eSubmission file

• 51

To generate tax records • 30

To initialise a calendar • 75

To initialise a new year for medical claims •

80

To initialise a shift team calendar • 76

To initialise leave • 78

To key in CPF for overseas posting • 15

To key in employee's other information • 15

To map nationality codes • 29

To modify the Appendix 8B • 45

To preview the tax forms and generate for

ePortal • 47

To print a Bonus Processing Report • 70

To print a tax form • 46

To print an Analysis Report • 45

To process an employee's IR21 form • 60

To remove employee records • 73

To start the income tax module • 19

To submit the IRAS file online • 52

To submit the PAT files online • 55

To unlock the IR8S table • 38

To update EPE • 3

To use a report configuration • 50

U

U, V, W, X, Y, Z • 127

Updating Easy Pay Enterprise (EPE) • 3

Useful contacts • 135

V

Verification report - Appendix 8A • 111

Verification report - Appendix 8b • 118

Verification report - IR8A • 100

Verification report - IR8S • 104

Verification report - Supplementary IR8a •

102

Y

Year end closing • 75

Year of Assessment • 2

Useful contacts

INLAND REVENUE AUTHORITY OF SINGAPORE (IRAS)

Tax Services Hotline: 1800 356 8611

Fax: 6351 4358/6351 3636

Tax Matters: 1800-3568300 / 6356 8233

efiling (employees) Queries 1800 3568015

Tax Queries: [email protected]

E-filing Queries: [email protected]

Tax Clearance: 1800 356 8655

e-Mail: [email protected]

Provident and Tax

Tel: 6887 7888; Fax: 6778 5277

Enquiries: [email protected], Email: [email protected]

Website: www.crimsonlogic.com, http://pat.com.sg

COMMUNITY FUND CONTRIBUTION

CDAC

Tel: 6841 4889, e-Mail: [email protected]

Website: www.cdac.org.sg

ECF

Tel: 6447 1578, Fax: 6447 3189

Website: www.eurasians.org

SINDA

Tel: 1800-2954554, Fax: 6392 4300

e-Mail: [email protected], Website: www.sinda.org.sg

MBMF

Tel: 6256 8188 / 6359 1180 - 186Fax: 6253 7572 / 6252 3235

e-Mail: [email protected], Website: www.muis.gov.sg

MINISTRY OF MANPOWER

General Queries

Tel: 6438 5122; Fax: 6534 4840


Website: www.mom.gov.sg

Skills Development Fund

Tel: 6278 4466; Fax: 6270 3904


Website: www.sdf.gov.sg

Work Permit Department

Tel: 6438 5122; Fax: 6317 1344


Employment Pass Department

Tel: 6438 5122; Fax: 6293 2138


CENTRAL PROVIDENT FUND BOARD

CPF Call Centre

Tel: 1800 227 1188, Fax: 6229 3880 / 6229 3881

Website: www.cpf.gov.sg

E-Submission Hotline (Employers)

Tel: 6229 3495 / 6229 3525


Foreign Worker Levy matters: [email protected] Employer CPF Refunds: [email protected]

CPF Liabilities / Payments: [email protected] Other enquiries: [email protected]

MINDEF

Hotline: 1800-eNSNSNS (1800-3676767)

Fax: 6373 1477 (Customer Service) / 6373 1464 (Employed Claims)

e-Mail: [email protected]: www.ns.sg

Documents

User's Guide Income Tax Module 2008 - · PDF fileTax clearance: IR21 ... IR8A .....100 Verification report - Supplementary IR8a