Guide to Filing IR8A for Employee Earnings
5 minute read
According to Singapore tax law, all employers are required to prepare and submit employment income details for all employees on a yearly basis.
To do so, employers must complete Form IR8A and any accompanying documents such as:
- Appendix 8A
- Appendix 8B
- Form IR8S (if applicable)
This article is an easy guide on what the IR8A form comprises and how you can file it for your employees to the Inland Revenue Authority of Singapore (IRAS).
- What is the IR8A for?
- Does the IR8A apply to all employees?
- How do I submit my IR8A to IRAS?
- What if I made a mistake in filing?
What is the IR8A for?
IR8A refers to the act of reporting employee earnings. It is a mandatory practice that all Singapore businesses need to manage and is one of the more important parts of your financial management efforts.
Under S68(2) of the Income Tax Act, all Singapore employers are required to prepare Form IR8A for all Singapore-based employees.
Employers are responsible for submitting these documents to the IRAS by 01 March of each year. Failure to do so may result in legal action that can be quite costly for your business.
As mentioned above, you may also need to provide supporting paperwork with the Form IR8A. This includes the Appendix 8A, Appendix 8B, or Form IR8S, depending on whether your employee is a foreigner.
If you are a Singaporean employee who receives in-kind benefits, you must fill out this form. In-kind benefits refer to non-cash benefits unrelated to your salary. This would include fringe benefits or other non-cash perks such as insurance, gym memberships or educational assistance.
If you are a Singaporean employee who has benefited from Employee Stock Option Plans (ESOPs), you will be obliged to fill out this form. If you have other types of Employee Share Ownership (ESOW) plans, this also applies.
You must fill out this form if you have made excess CPF payments on your employees’ salaries and/or have claimed or will claim a refund on excess contributions of this kind.
For the most updated contribution rates, please visit the official CPF website.
Does the IR8A apply to all employees?
Every employer must fill out an IR8A form for each of their employees including:
- Full-time or part-time employees who are Singaporean or permanent residents
- Employees who are not based in the country and are required to render service in Singapore during the year
- All local business owners and managers
- Directors of non-resident corporations
- Board members receiving Board/ Committee Member Fees
- All employees that are receiving a pension (i.e. CPF) while working for the company
- Employees that left the business but are owed the money from the previous year
Who is exempted from IR8A filing?
The following are excluded from IR8A filing:
- Post-clearance foreign employees who didn’t provide employee services in Singapore for the duration of the calendar year
- Employees that were based outside of Singapore for the entire calendar year and supplied their services wholly outside of Singapore
- Those who have departed the firm and/or the country (a Form IR21 must be sent to IRAS in this situation)
How do I submit my IR8A to IRAS?
Let’s walk you through the process of submitting your IR8A to IRAS.
File it electronically via the AIS
Singapore employers can file the IR8A information electronically thanks to the Auto-Inclusion Scheme (AIS) by IRAS, for employment income. This scheme is optional for companies with 5 or fewer employees, however it is compulsory for companies with 6 or more employees.
The data is automatically incorporated in the employee’s income tax assessment, making things easier for both the company and the employee. We also recommend that you give each of your employees a copy of their IR8A form for their records.
You can use this IRAS Service to see if your company is registered for AIS in case you have any doubts or worries.
Setting up your IRAS may take some time at first, but it will definitely save you time in the long run compared to filling a hardcopy. Also, employee information will update automatically each year under the AIS, eliminating the need to submit it manually.
Remember to double-check that your payroll software supports IR8A before you begin. For example, Sleek’s payroll services includes an annual IR8A preparation for your business convenience.
What if I made a mistake in filing?
Don’t worry – nothing is lost if you make a mistake. You can adjust the amount easily in the portal. Simply amend the difference by updating with the actual number if you need to make revisions to your employee’s income information after you’ve completed the forms electronically.
Alternatively, you can easily alter your employee income tax forms using an IRAS-approved online application (some of these are 100% free to use).
However, do make sure you finish this before the stipulated deadline, which is 31 March.
How Sleek can help
Thanks to Sleek’s digital payroll services, you will no longer have to worry about submitting employee earning forms. This is not only for your monthly payroll reports but also for annual IR8A preparation, IR21 tax clearance, CPF submissions, and SDL processing.
Need further help with your taxes? Download our free tax calendar for 2022 and never miss a deadline again.
Or simply take the hassle from your accounting and taxes, and make the switch to Sleek today. Contact us if you have any further questions, our expert team will be delighted to help you.