"In this world nothing can be said to be certain, except death and taxes." - Ben Franklin
As humorous as this quote from Ben Franklin may be, paying taxes is no funny matter. For me, tax season is when I take a long, hard look at my expenses and earnings, and then think about what the government has done for me with my tax money last year.
As employees, we get paycheck from employers, and pay taxes to the government. As employers, we report to the government how much money the employees has earned, and how much tax must be paid, last year, through a form called IR8A.
What is IR8A
The IR8A form is meant for the employer to fill out, for certain types of employees, such as full-time resident employees, part-time resident employees, non-resident employees, company directors, just to name a few. Exclusions apply, mainly to foreign employees whom worked outside Singapore for an extended period.
When is the deadline of IR8A Submission?
Usually the form must be filled out for every employee, before March 1st or every year. There is plenty of time in January and February for employers to fill out. Failing to submit before the deadline may lead to charges under Section 94 of the Income Tax Act. Upon conviction, a fine of up to $1,000 or imprisonment of up to 6 months may be bestowed upon you. (LIke I mentioned earlier, tax is no joking matter!)
How to Submit IR8A
There are a couple of ways to submit the IR8A.
Of course there's the good ol' manual paperwork and mail it in, which we won't talk about.
There's also the most popular way, which is electronically, electronically through the AIS (Auto-Inclusion Scheme) on the IRAS website. Doing so saves a lot of paperwork and hassle, therefore we strongly encourage all employers to participate in the AIS, even if you have less than 5 employees.
MOM Approved Payroll software Vendor : Swingvy HR & Payroll Software
Speak to us to see how Swingvy can change the way you manage your HR processes.