|
|
|
| |
| Attention Employers, go "e" now! |
|
About 98% of employers with 100 or more employees have already gone electronic for submission of CPF contributions! This trend is catching up with others too.
Employers should convert to e-submission now. From 1 April 2003, employers who submit CPF for 100 or more employees using the manual Payment Advice will be charged a processing fee. The processing fee is $7 per employee per month. It will help the Board to offset the cost of having to maintain a manual processing system for manual payments. This fee may also apply to employers with fewer than 100 employees in time to come.
E-submission cuts down your paperwork and saves time! It is a simpler, faster and more secure way to submit CPF contributions.
By going "e", you'll enjoy these benefits:
| |
- Save time - No need to prepare manual payment forms.
- No manual handling - No more worries about losing your tapes, cartridges or payment advices in the mail.
- Security of information
- Netrust or the free 128-bit SSL security options give access only to registered users.
Accuracy of information - Errors minimised as information is extracted directly from your payroll system or last month's contribution details.
Service available round the clock - Submit any time, anywhere in the world.
Convenience - Value-added features allow you to enquire about submission status, maintain your staff access and retrieve the Record of Payment, all via the Employer Returns service. You may even delete an erroneous file as long as it is done before 5pm on the day of submission. |
Conversion to e-submission may take up to three months, depending on how ready you are. So start your preparations now and save yourself the processing fees! We have a variety of e-modes for employers with different needs. Call our Electronic Returns section at 6229 3495 or 6229 3195 to find out more. |
|
|
|
| Calling all small employers: Submit CPF with the latest mobile phones! |
You are rushing to an important meeting but you need to submit your CPF contributions today. You don't need to dash back to your office. Instead you whip out your mobile phone. Within a few minutes, you have completed your CPF transaction, with just three clicks. Is this a dream or reality? |
| |
|
| Benefits of mPAL |
|
| With mPAL, you can submit your CPF contribution details anywhere, any time and even on the move! You can even track your submission status, and retrieve the Record of Payment instantly. These are benefits which you cannot enjoy with manual submission. Pay with GIRO-on-demand and you don't have to worry about late or missing cheques. |
|
With our mPAL service, you can complete your CPF submission in three easy steps:
| 1) |
Log on to mPAL with your NRIC and CPF Phone PIN |
| 2) |
Select a saved template |
| 3) |
Amend and submit contribution details | |
| |
|
| Get the latest mobile phones |
|
| The CPF Board is inviting employers with one to 10 employees to take part in a 6-month mPAL trial. Sign up for the service now and buy the latest Nokia 7650, 6100 and 6610 and the Sony Ericsson P800 at incredible prices! Special subscription plans with M1 are also available. |
|
| Hurry and sign up now! Places are limited to the first 200 employers. Call our team at 6229 3195 or 6229 3847, or email us at Er-Con@cpf.gov.sg. Visit our website at www.cpf.gov.sg for more information. |
|
|
| Terms & Conditions |
|
To try out this revolutionary service, you should meet the following requirements:
|
|
Employ 10 or less employees |
|
|
Pay CPF contributions via GIRO-on-demand |
|
|
Use the mPAL service for six consecutive months* |
|
|
Take part in our surveys during/after the trial period |
|
|
Possess a Nokia 6100, 6610 or 7650 or Sony Ericsson P800 | *No Payment Advice (Form CPF 91) will be sent to mPAL trial users during the 6-month trial. An administrative fee of $200 will be payable to CPF Board if you withdraw within the 6-month trial period.
M1 was selected for the 6-month trial after an open tender called by the Board last year. Other telephone models and suppliers will be considered after the trial. |
| |
|
| Applying the Additional Wage Ceiling and the Limit on Voluntary Contributions |
|
| If your employee earns more than $100,000 in total wages for a year, you would need to apply the Additional Wage Ceiling. You should also take note of the Limit on Voluntary Contributions. CPF contributions for January 2003 onwards, including voluntary contributions, by Singaporeans and SPRs will be limited to the mandatory contributions, or $28,800 whichever is higher. This limit is applicable to employees, the self-employed and the non-employed. |
|
| Here is how you should apply the Additional Wage Ceiling and the Limit on Voluntary Contributions. |
|
Example:
An employee below 55 years old is drawing a monthly salary of $8,000 and receives Additional Wages of $8,000 twice in the year.
| Total Ordinary Wages (TOW) |
= $96,000 [$8,000 x 12 months] |
Total Additional Wages (TAW)
(i.e. Bonus and such) |
= $16,000 [$8,000 + $8,000] |
| Total Wages (TW) |
= $112,000 |
| |
|
| Contributions for TOW |
= $25,920 [36% x $6,000* x 12 months] |
| |
* Salary ceiling of $6,000 applies. |
| |
|
| Since TOW is more than $72,000, |
| AW Ceiling |
= $38,400 [40% x $96,000] |
| |
| Since the TAW paid ($16,000) is below the AW Ceiling of $$38,400, |
| Contributions for TAW |
= 36% x $16,000 |
| |
= $5,760 |
| |
|
| Total Mandatory contributions |
= $31,680 [$25,920 + $5,760]. |
| As Mandatory Contributions has exceeded $28,800, no Voluntary Contribution is allowed. | |
|
|
| Options for your Singapore Permanent Resident employees |
You can help your Singapore Permanent Resident (SPR) employees save more for their retirement! As an employer, you can contribute at the full CPF rates even for the first two years. Your SPR employee can also contribute at the full rate, or the graduated rate. These options are available upon application. Otherwise, the mandatory graduated employer and employee rates will apply. See below for a summary of the options:
| Option |
Employer rate |
Employee rate |
Application |
| 1 |
Graduated |
Graduated |
Applies once employee becomes SPR |
| 2 |
Full |
Full |
Upon application |
| 3 |
Full |
Graduated |
Upon application |
For options 2 and 3, you and your employee will have to apply jointly to the Board. Use the form "Joint Application for Singapore Permanent Residents (SPRs) (ES/PR/94A)", available from our website at www.cpf.gov.sg |
| |
|
| Remember to pay CPF on festival bonuses |
Giving your employees a little extra for the festive season? Remember to pay CPF too! CPF is payable on all cash bonuses, including those that are collected and distributed by the employer. |
| |
|
| SELF-EMPLOYED NEWS |
| |
Assumed income of $9,000 to apply from 2003
The assumed income for self-employed persons who have not been issued with a Notice of Assessment (NOA)/ Non-tax Advice by the Inland Revenue Authority Of Singapore (IRAS) will be increased to $9,000. This will take effect in 2003 and not 2002 as announced previously.
Pay Medisave only after your income has been assessed
For the self-employed who have previously been issued an NOA/Non-tax Advice, Medisave contributions for the current year will only be payable after IRAS has assessed the net trade income in the following year. For example, you will only need to pay your Medisave contributions for 2002 after you receive the Notice of Computation (NOC) in 2003.
Here is a quick guide on how Medisave contributions for the self-employed will be calculated from 2003 onwards:
|
| |
Previously issued with an NOA/Non-tax Advice by the IRAS |
Previously not issued with an NOA/Non-tax Advice by the IRAS |
| Medisave contributions |
Computed after income for the relevant year has been assessed by IRAS.
Contributions will be 6-8% of your net trade income depending on your age group. |
Computed based on an assumed income of $9,000.
Contributions will be 6-8% of $9,000 depending on your age group. |
| Payable |
Within 30 days from the date of issue of the NOC. |
By 31 May of the following year. | |
| |
|
|