Presented By Central Provident Fund Board - ACRA
Presented By Central Provident Fund Board - ACRA Presented By Central Provident Fund Board - ACRA
Presented By Robert Tan Central Provident Fund Board
- Page 2 and 3: Objective of CPF The CPF was setup
- Page 4 and 5: Am I an Employer? YES, if you empl
- Page 6 and 7: As an Employer, you are… require
- Page 10 and 11: How much should I contribute? CPF c
- Page 12 and 13: applforintbkgiro Making your first
- Page 14 and 15: E.g. Company Directors, Part time/C
- Page 16 and 17: Contract for Service Price their o
- Page 18 and 19: Ordinary Wages due or granted whol
- Page 20 and 21: Common Errors Made By Employers •
- Page 22 and 23: Recovery of CPF Arrears 1. Detectio
- Page 24 and 25: Submission Modes Manual Submission
- Page 26 and 27: E-Submission Electronic mode Do I n
- Page 28 and 29: Modes of Payment 1. Cheque Accepte
- Page 30 and 31: Modes of Payment ATM card/ Diners
- Page 32 and 33: Contact Information CPF Website -
<strong>Presented</strong> <strong>By</strong><br />
Robert Tan<br />
<strong>Central</strong> <strong>Provident</strong> <strong>Fund</strong> <strong>Board</strong>
Objective of CPF<br />
The CPF was setup in 1955 to<br />
provide financial security for<br />
members during their retirement.
CPF also helps members to<br />
meet their basic needs in<br />
healthcare and<br />
home-ownership.<br />
ownership.
Am I an Employer?<br />
YES, if you<br />
employ an employee under a<br />
contract of service or apprenticeship,<br />
e.g. employment contract,<br />
apprenticeship contract; or<br />
pay wages on behalf of the employer,<br />
e.g. manager of a football club,<br />
manager of a foreign representative<br />
office in Singapore.
As an Employer, you …<br />
Have a grace period of 14 days to<br />
make payment of CPF contributions<br />
after the end of the month in which<br />
the CPF contributions are due, eg, CPF<br />
contributions are payable for February 2010<br />
wages by 14 March 2010.
As an Employer, you are…<br />
required to pay both the employer’s and<br />
employee’s shares of CPF contributions<br />
monthly.<br />
entitled to recover the employee’s share<br />
from the employee’s wages when the wages<br />
are paid.
How much should I contribute?<br />
The CPF contribution rates varies according<br />
to the individual employee’s s age and<br />
monthly wages.<br />
More information is available on the CPF<br />
website at employer.cpf.gov.sg<br />
Employers’ Guide to CPF<br />
Contribution Booklets<br />
CPF Contribution Calculator
How much should I contribute?<br />
CPF contributions are payable for your employees<br />
when their wages for that calendar month exceed:<br />
Age<br />
35 years and below<br />
Above 35 to 50 years<br />
Above 50 to 55 years<br />
Above 55 to 60 years<br />
Above 60 to 65 years<br />
Above 65 years<br />
Wages exceeding<br />
$50<br />
$55.18<br />
$57.17<br />
$60.04<br />
$65.06<br />
$65.06
CPF Contributions<br />
Contribution Rates for employee aged 50<br />
years and below earning more than<br />
$1,500 per month:<br />
Employers pay 34.5% of wages<br />
to the CPF; of which 20% is<br />
recoverable from the employee’s s wages.
applforintbkgiro<br />
Making your first CPF<br />
Contribution as a New Employer<br />
To sign up for CPF e-Submission to<br />
make your first CPF payment, submit<br />
the following forms at least 7 weeks<br />
before the due date of your first CPF<br />
payment :<br />
New Employer’s First CPF Contribution form<br />
(Form CPF/1),<br />
CPF e-Submission Registration form, and<br />
Application for Interbank GIRO form.<br />
Form CPF 1<br />
CRDInternetForm1<br />
If you are making your first payment<br />
by cheque, it should be made payable<br />
to “CPF <strong>Board</strong>” and attached with your<br />
Form CPF/1.<br />
applforintbkgiro
Who is an Employee?<br />
Singapore Citizens who are employed under<br />
a contract of service in Singapore, including<br />
Permanent Residents.<br />
Singapore Citizens who are employed in any<br />
vessel under a contract of service entered<br />
into in Singapore.
E.g. Company Directors, Part time/Casual Workers,<br />
Family Workers, National Servicemen on reservist<br />
training, etc.
Contract of Service<br />
Remuneration in monies for work done<br />
Master and servant relationship<br />
Control of working hours, workflow<br />
Right to hire and dismiss<br />
Benefits – leave, bonus, insurance<br />
Need to serve notice of termination<br />
Use of facilities, tools, equipment
Contract for Service<br />
Price their own work<br />
Responsible for their own profit & loss<br />
Right to substitute himself or hire other<br />
workers<br />
No benefits<br />
Use own facilities, tools, equipment
Wages<br />
<br />
Remuneration in money due or given to an<br />
employee in respect of his employment.<br />
Total wages = Ordinary Wages + Additional Wages
Ordinary Wages<br />
due or granted wholly and exclusively in<br />
respect of an employee’s employment in<br />
that month.<br />
payable before the due date for payment of CPF<br />
contributions for that month. e.g. monthly<br />
salaries, food allowance, overtime allowance etc.<br />
CPF contributions for Ordinary wages is capped at<br />
$4,500 per month
Additional Wages<br />
<br />
not granted wholly and exclusively for<br />
that month e.g. annual bonus, leave pay,<br />
commission, incentive and other payments<br />
made in intervals of more than a month.<br />
<br />
CPF Contributions on Additional wages is<br />
capped at $76,500 less the total Ordinary<br />
Wages subject to CPF contributions in the<br />
year.
Common Errors Made <strong>By</strong> Employers<br />
• No CPF paid for employees on probation, part time,<br />
and casual work<br />
• No CPF paid for employees who are wrongly<br />
classified as persons engaged under a contract for<br />
service<br />
• No CPF paid for make-up pay received by NSmen<br />
on In-Camp Training<br />
• No CPF paid for foreign employee attaining S’pore<br />
Permanent Resident (SPR) status<br />
• CPF underpaid due to wrong application of SPR<br />
rates
Common Errors Made <strong>By</strong> Employers<br />
• No CPF paid for overtime, various allowance<br />
such as meal and transport allowances<br />
• Wrong Classification of Wages (E.g Bonuses,<br />
Commission) as Ordinary Wages<br />
• No payment of CPF on commission including<br />
third party commission (e.g commission<br />
received by salesman from financial<br />
institutions)<br />
• Wrongful deduction of employer’s share of CPF<br />
from employee’s wages.
Recovery of CPF Arrears<br />
1. Detection system<br />
2. Industry surveys<br />
3. Employees’ feedback
Enforcement of CPF Payments<br />
Possible Penalties<br />
Interest on late contributions calculated daily<br />
at 1.5% per month or 18% per annum,<br />
subject to a minimum of $5.<br />
Legal actions sanctioned under the CPF Act<br />
e.g. composition of offences, Court fines,<br />
imprisonment and criminal & civil proceedings.
Submission Modes<br />
Manual Submission<br />
Payment Advice (Form CPF 91)<br />
Form CPF 91<br />
Form CPF 92<br />
New Employee Contribution<br />
Form (Form CPF 92)
Processing Fees<br />
Employers who submit CPF contribution details<br />
for 11 or more employees using hardcopy<br />
Payment Advices have to pay a processing fee<br />
of $7 per employee per month.<br />
This will be extended to employers with 4 to 10<br />
employees from October 2010.
E-Submission<br />
Electronic mode<br />
Do I need to pay ?<br />
What do I need to<br />
e-submit ?<br />
How do I make<br />
the payment ?<br />
CPF Website<br />
Auto-eXcel Plus<br />
File transfer using<br />
payroll system<br />
No. It’s free<br />
Computer with internet<br />
access, SingPass<br />
GIRO / Internet<br />
Banking<br />
AXS Stations<br />
No. It’s free<br />
N.A.<br />
ATM Card/ GIRO/<br />
Diners Club<br />
Credit Card<br />
mPAL – Employer<br />
Submission<br />
GPRS connection<br />
charges apply<br />
Mobile phone with<br />
GPRS access<br />
GIRO<br />
<strong>Provident</strong> and Tax (PAT)<br />
Subscription fees<br />
are payable to<br />
CrimsonLogic<br />
Computer with internet<br />
access<br />
Registered PAT user<br />
GIRO<br />
Velocity@ocbc<br />
No. It’s free<br />
Computer with internet<br />
access<br />
Registered OCBC<br />
Velocity user<br />
Interfund transfer
CPF e-Submission e<br />
saves you<br />
time & money<br />
Submit your contributions anytime, anywhere<br />
even while overseas.<br />
Transmit data via an encrypted channel to ensure<br />
maximum security.<br />
Track submission status online.<br />
Save time and hassle of paper work.<br />
Do away with cheques.<br />
Receive email reminders (for employers with valid<br />
email addresses) so that you will not incur late<br />
payment charges.
Modes of Payment<br />
1. Cheque<br />
Accepted at CPF offices<br />
Not applicable for CPF e-Submission<br />
2. Cash<br />
Accepted only at Singapore Post Offices<br />
Not applicable for CPF e-Submission
Modes of Payment<br />
3. Electronic Payment<br />
Inter-Bank GIRO<br />
(Payment forms, CPF e-Submission)<br />
eNETS<br />
For CPF e-Submission employers with an<br />
Internet banking account with DBS, UOB<br />
or Citibank.<br />
Only personal accounts are supported.
Modes of Payment<br />
<br />
ATM card/ Diners Credit Card<br />
Available only at AXS stations.<br />
<br />
GIRO Standing Instruction<br />
For employers who employ 10 or less staff<br />
and whose CPF contributions do not vary<br />
from month to month.<br />
No need to submit contribution details.
Agency Services<br />
CPF <strong>Board</strong> is also the collecting agent for :<br />
Chinese Development Assistance Council<br />
(CDAC) <strong>Fund</strong><br />
Eurasian Community <strong>Fund</strong> (ECF)<br />
Mosque Building and Mendaki <strong>Fund</strong> (MBMF)<br />
Singapore Indian Development Association<br />
(SINDA) <strong>Fund</strong><br />
Foreign Worker Levy (FWL)<br />
SHARE Programme Donations<br />
Skills Development Levy (SDL)
Contact Information<br />
CPF Website - http://www.cpf.gov.sg<br />
Employer Website - http://employer.cpf.gov.sg<br />
CPF Call Centre - Tel: 1800 - 227 1188<br />
Employer Registration – employer-accounts@cpf.gov.sg<br />
CPF Liabilities<br />
- employer@cpf.gov.sg<br />
E-Submission - Tel : 62202340<br />
- employer-esubmission@cpf.gov.sg
Thank You !