YEAR END WORKSHOP ESSENTIAL GUIDE

Transcription

1 YEAR END WORKSHOP ESSENTIAL GUIDE Co. Registration No: D Tel: (65) Fax: (65) Address: 10 Jalan Besar, #14-01 Sim Lim Tower Singapore

2 Contents Page PART 1 Year End Procedures Installation of Updates for TIMESPAY Processing of Bonus Run in Year CPF Excess Refund Initialize New Year Backing up of Database(s) Initialize of New Year Initialize of New Year (Financial Year) Processing of Previous Year Bonus (Year 2018) 45 PART 2 IRAS Submission Exclusion from IRAS Submission IRAS 2018 Program IRAS Settings Tax Line Setup Voluntary CPF Setup Recalculate CPF Modify IR8S IR8S Report IR8A Report Review/Printing of IR8A Report IR8A Checking Report IR8A Checking Report Landscape Format Grand Total IR8A Checking Report IR8A Adjustment Pay History Report By Employee Pay History Report By Employee E-Submission Income Tax Format Crimson Logic Format Validation & Submission Application Quick Start Guide Benefits In Kind Benefits in Kind IR8A Additional Record Tab Housing Tab Hotel / Travel Tab Others Tab Remarks Tab Misc Tab Benefits In Kind Amendment Appendix 8A Share Options Appendix 8B Query P a g e

3 Workshop Overview 1. Initialize of New Year This is a compulsory step, which creates a new payroll calendar for the New Year. Without running this step, users will not be able to apply leave in advance or process 2018 payroll. 2. Bonus Processing There are two types of Bonus Processing. Bonus can be processed during year end 2017 or early IRAS Year of Assessment (YA) 2018 A separate application to generate income tax data for payroll and non-payroll related items. Two types of submission. E-Submission Manual Submission. 2 P a g e

4 Part 1 Year End Payroll Procedures Update of TP8 and Installation of IRAS 2018 (page 4) Processing of Bonus/AWS in Year 2017 (page 12) Backup of Database (page 32) Initialize New Year and Leave Carry Forward (page 34) Processing of Previous Year Bonus in Year 2018 (page 45) 3 P a g e

5 1.1 Installation Guide (TIMESPAY 8.0) Key features added to this version: IRAS2018 application for yearend income tax submission. Updated Public Holidays table for the year Enhanced functionality for TimesPay 8.0 and IRAS module Installation Procedures: 1. PLEASE ENSURE ALL USERS HAVE LOGGED OFF FROM THE PAYROLL BEFORE PROCEEDING. 2. If the TIMES software application is accessed remotely and software application installed on the client s PC but database(s) on the server, please update both the server and client s PC. 3. Users who are using the standard payroll TIMESPAY 8.0 (TP8), please refer to the URL sent in the to download the executable file for the update: 4 P a g e

6 Windows XP User For Windows XP users, the following window will be prompted after accessing the link above: Name: TP exe Type: Application, 2.26MB From: Select Desktop from the Save in, retain the File name and Save as type fields and click on Save. 5 P a g e

7 Windows 7 and Above User For Windows 7 and above users, a window will be prompted at the bottom half of the browser. Select Save then Save As and another window shown below will prompt again. Select Desktop from the Save in, retain the File name and Save as type fields and click on Save. 6 P a g e

8 Users who are using the customize payroll versions (ie. TIMESPAY8_CLAIM, TIMESPAY8_CURRENCY), please download the updates at the following link: Alternatively, contact to request for the update . When the download is completed, this icon will appear on the desktop: 4. Double click or run this icon and the following screen will appear. If the Destination Folder is correct, click on the "INSTALL button : 7 P a g e

9 How to identify your Payroll Application Location: 1. Locate the TIMESPAY8 icon on your desktop. 2. Right click on the icon and select Properties. 3. Click on Shortcut tab i. Look in the Start in: field: 8 P a g e

10 IMPORTANT NOTE!!! IT IS IMPORTANT TO SELECT THE RIGHT DESTINATION WHERE THE PAYROLL SYSTEM IS LOCATED AS IT WILL DETERMINE IF THE PROGRAM IS UPDATED. [PLEASE READ THE STEPS IN PAGE (4) FOR THE WALK- THROUGH] 5. Upon clicking INSTALL, the application will prompt for a password. Please enter the password which was indicated in the and click on OK to proceed. 6. The following window will be prompted: Select Yes to All button to proceed 7. Upon successful installation, the window will disappear when update is complete. 9 P a g e

11 Common Errors Encountered during Update There are 2 reasons this error might occur: a. The system detect user access during the update. Please ensure all users are logged off and repeat the installation. b. No access rights to perform the update. Please request system administrator to assist in updating. 10 P a g e

12 To verify if the Payroll is updated? a. Run the TIMESPAY8 application. b. At the login screen, ensure the version is at P a g e

13 1.2 PROCESS BONUS (YEAR 2017) This section is to equip user with the knowledge of processing bonus. Bonus Processing Procedures: 1. In the main menu, click on Process Payroll. 2. Select Bonus Record. 12 P a g e

14 3. Bonus Run screen will be prompted: 13 P a g e

15 Fill in the blanks in accordance to your company s Bonus Processing policies. 1. Item Explanation Important Remarks 1 Bonus Code: Select the code from the Allowance/Deduction table that you wish to declare as your Bonus Code. For Bonus run, we recommend to use codes starting with BONU for example: Please DO NOT use BONUSP as it s a reserved code for Bonus for year 2017 which are paid in the year BONUAWS - BONU - BONUADV BONU vs Other Allowance Code 14 P a g e

16 2. Item Explanation Important Remarks 2 Bonus Method: Select the following bonus method practice by your company: - By Calendar: Based on Calendar Year (Jan 2017 to Dec 2017) - By Pay Period: Based on employee s pay group s period (21st Dec 2016 to 20th Dec 2017) - By Calendar Periodical: Based on company financial period (July 2016 to June 2017) 15 P a g e

17 3. 4. Item Explanation Important Remarks 3 Cut-off Bonus (Mth/Period): Determines the cut off period of the bonus computation. Example: Company s bonus follows the calendar year, the bonus cut off will be as follows: Company s bonus follows the pay period, the bonus cut off will be as follows: Company s bonus follows the calendar- periodical, the bonus cut off will follow the company s financial year. For example company s financial year is from July to June: 4 Bonus Factor: This defines the multiplying factor for bonus computation. Example: For AWS payout, it is usually 1 month s pay. Hence indicate 1 in the Bonus Factor. If it s set to zero, the Bonus Factor value specified in the Update Employee record will be used instead. Please see screenshot below: 16 P a g e

18 Update Bonus Factor This section allows user to update the employee s bonus factor in one single window. Once this list is updated, the system will process the bonus based on the updated bonus factor. Update Procedures: 1. At the Process Bonus Record, click on Update Bonus Factor tab. Click on Generate Record button to generate employee listing. 2. The system will display a list of employee s bonus factor: 3. Once the Bonus Factor has been updated, proceed back to Bonus Parameter tab to process the bonus. COMMONLY MADE MISTAKES This setup will supersede the standard setup on the Bonus parameter tabs. If Update Bonus Factor option is not in use, please ensure that the list is empty before processing the standard bonus run. 17 P a g e

19 Process Bonus by Individual This section allows user to enter the bonus amount/ factor by Individual Staff. Processing Procedures: 1. At the Process Bonus Record, click on the Individual tab (Optional) To retrieve the Bonus Factor from Update Employee, please at the option. 3. Click on Generate Record 4. The system will generate an employee listing: 5. This allows user to key in fixed amount or the bonus factor for each staff. After the entry, proceed back to Bonus Parameter tab to process the bonus. 18 P a g e

20 6. To update the entry back to Update Employee Bonus Factor field, check on the Update Bonus Factor to Update Employee? check box. 7. Click on Generate Record button to update the Bonus Factor. Updated from Individual Tab COMMONLY MADE MISTAKES This setup will supersede the standard setup on the Bonus parameter tab and the Group tab. If the individual setup is not in use, please ensure that the list is empty before processing the standard bonus run. 19 P a g e

21 Process Bonus by Group This section allows users to be able to execute the Bonus Run by Group. Processing Procedures: 1. At the Process Bonus Record, click on Group tab. 2. Selection for group by option includes: Category Code Appraisal Code Job Grade Code Classification Code 3. Click on Generate Record button. 4. Key in either combination below: - Bonus Factor, Variable Bonus 1 and Variable Bonus 2 for each group or - Fix amount, Variable Bonus 1 and Variable Bonus 2 for each group. 5. Once entry is done, proceed to the Bonus Parameter tab to process the bonus. 20 P a g e COMMONLY MADE MISTAKES This setup will supersede the standard setup on the Bonus parameter tab and the Individual tab. If the group setup is not in use, please ensure that the list is empty before processing the standard bonus run.

22 5. Item Explanation 5. Select your Bonus Payment By: - New Base Salary - Base Salary - New Base Salary (Last year) - Fixed amount - New Base Salary + (NWC) - Base Salary + (NWC) - Base Salary + (NWC) Last Year - New Base Salary + (Svs pt) - Base Salary + (Svs pt) - Base Salary + (Svs pt) Last Year - New Base Salary + (MVC) - Base Salary + (MVC) - Average Paid Salary Commonly used option. NWC = National Wage Council (Union Employees) Svs pt = Service Points. Only applicable to hotels still using this scheme. Only applicable if the company uses MVC as recurring allowance. Applies to Hourly/Daily Rated Staff Bonus Payment By Case 1 Bonus Run on Case 2 Bonus Run on P a g e

23 Item Explanation 6. Bonus Amount Only use this field if you have Fixed Amount payment selected in Item Which Period To Pay Bonus Select which Pay Cycle to pay out the bonus: - Mid-Month Period: The bonus amount will be lumped into the mid-month cycle. - End-Month Period: The bonus amount will be lumped into the end-month cycle. - Seperately: The bonus amount will be seperated and placed into Bonus Cycle. The use of Separately option is strongly recommended, so the system could differentiate the CPF contributions of the bonus pay cycle with the normal pay cycle. 8. Bonus Calculation By Prorate the bonus based on: - Service Month Example: Hired date: 11/05/2017 Cut Off Bonus: Bonus factor: 1 Bonus method: By Calendar Basic Salary: $2,000 Which period to pay bonus: Separately Service Month Cut Off Day: 15 The bonus will be computed as follows: (8/12) month X $2,000 =S$1, P a g e

24 Item Explanation - Calendar Days : Example: Hired date: 11/05/2017 Bonus factor: 1 Bonus method by: Calendar Basic Salary: $2,000 Which period to pay bonus: Separately Cut Off Bonus: Exclude NPL= 3 days (Use the Leave Exclusion function to further prorate bonus if staff is on NPL for more than 3 days) The bonus will be computed as follows: Total calendar days = 365 days The bonus will be computed as follows: Actual calendar days: ( ) - 3= 232 days 232/365 calendar days X $ = S$ Working Days: Example: Hired date: 11/05/2017 Bonus factor: 1 Bonus method by: Working Days Basic Salary: $2,000 Which period to pay bonus: Separately Cut Off Bonus: NPL: 3 days The bonus will be computed as follows: Total working days for 5 Days/Week in year 2017: 260 days Actual working days less NPL days (3) = 164 days The bonus will be computed as follows: 164/260 working day X S$ = S$ None: No proration will be done to the bonus amount 23 P a g e

25 Item Explanation Important Remarks 9. Service Month Cut-Off Day This option is only applicable when Service Month is selected under Item Contribute Community Funds Option to include community funds into the Bonus Cycle or exclude it and lump the amount in End Month Cycle. This is to indicate the cut off day of the particular month. 15 means the staff must work more than 15 calendar days or equal in the 1 st month he / she joined the company. If more than 15 calendar days or equal to 15 calendar days, the service month is 1, else it is a zero month. If you had processed the End Month, this option will no longer be available. 11. Rounding Formula This option will round the bonus amount based on the following selection: - None (Default) - Round up to Dollar - Round down to Dollar - > 0.5 = 1 or 0.5 = 0.5 or < 0.5 = 0 - > 0.5 = 1 or <= 0.5 = 0.5 or 0 = Leave Exclusion If any of the checkbox is, system will prorate the bonus amount according to the leave taken by the employees. 24 P a g e

26 Item Explanation Important Remarks 13. Exclude Bonus Condition This option is turned on by default. - Exclude Unconfirmed Staff The system will exclude all unconfirmed staff when processing the bonus cycle. - Exclude Employee Hired after and Exclude Employee Resigned After The system will exclude the staff hired after the keyed in date or resigned after a certain date. 14. Clear Record This option clears processed bonus records in the Modify Bonus Record. 15. Trial Run This option generates a sample bonus report. Payment will not be generated into the Modify Bonus Record. 16. Process 17. Close This option process bonus figure into the bonus cycle. This option exits the current screen and returns to the main screen. 25 P a g e

27 Bonus Run - Import from Excel User can import bonus with an Excel file. The Excel should not contain $ sign and, comma under Bonus Amount. 1. Once the excel file is ready, go under Custom Add-On and select the Bonus/Allowance Data Import. 2. Select the allowance code from the Code drop down option. 26 P a g e

28 3. Select the excel file from the look up button in the Filename field. 4. Enter the respective column number for Employee# and Amount. For the above example, Employee# is at Column A of the Excel File and Amount is at Column B of the Excel File. 5. Select the pay period Bonus and click the Process button. Modify Bonus cycle showing the import of the allowance. 27 P a g e

29 1.3 CPF EXCESS FREQUENTLY ASK QUESTION Why does the system not calculate the CPF Excess? According to the CPF Board, payroll vendors do not have the right to adjust any CPF Excess automatically from the system. Hence, CPF Excess can only be identified through report. Upon closing the December payroll, it is important for the payroll officer to view the CPF Variance Report located in Payroll Reports > Internal Reports. By viewing this report, you will know which employees have excess contributions in their CPF: 28 P a g e

30 There is CPF Excess when there is a value under Employee/Employer variance column. 1. If the employee has CPF excess and CPF file has not submitted to the CPF Board, the amount can be manually recovered via Modify Pay Record to reduce the EECPF and ERCPF. By doing so, you can save all the hassle of submitting the CPF Refund form to the CPF Board and the IR8S Form to IRAS. 2. However, if the CPF Excess figure is larger than December CPF contribution, CPF Refund form and the IR8S form has to be submitted in order to recover CPF Excess from the CPF Board. 3. To manually adjust the CPF value for the affected employee(s), first go to the Update Employee Record > Other Tab. Tick on the Change CPF/FWL/SDF? option and click on Save button. 4. Next, go to Modify Pay Record and click on Recalculate button. The Employee CPF and Employer CPF will be highlighted in blue. Amend the CPF rates accordingly. 29 P a g e

31 How to modify CPF figures? Employee Variance is $ Employee CPF contribution is $ Hence, the Employee CPF should be manually adjusted to: -$ $ = -$ Employer Variance is $ Employer CPF contribution is $ Hence, the Employer CPF should be manually adjusted to: $ $ = $ This is what should be reflected in the Modify Pay Record: IMPORTANT NOTE!!! After saving the manual adjustment. DO NOT REPROCESS PAYROLL or CLICK ON THE RECALCULATE button, as this action will revert the Employee and Employer CPF amount to the original figure. 30 P a g e

32 1.4 Initialize New Year Initialize New Year is a compulsory step to take during the year end period. The objective of this is feature is to: Create the employees working calendar for the year Creating a public holiday table for the year 2018 Bring forward leave balances of year 2017 to year IMPORTANT NOTE!!! Employees can only apply leave in year 2018 after Initialization of New Year. This is an important step if employees would like to plan 2018 leave in advance via the Time Leave System. 31 P a g e

33 1.4.1 Backing Up of Database(s) Before initialization of New Year, it is highly recommended for users to back up the database(s). Backing up Procedures: 1. Before backing up the database: PLEASE ENSURE ALL USERS ARE LOGGED OUT FROM THE TIMES APPLICATION. (INCLUDING E- MODULES) 2. In the login screen of TimesPay 8.0, select the company to backup and click on the Diagnostic button: 32 P a g e

34 3. Click on the Backup button. 4. The default back up location is in the TP8 folder. To reselect another location drive to store back up folder, click on the Folder button. When ready, click on START to commence back up process. 5. Repeat steps 3 to 5 if you have more than one database. 33 P a g e

35 1.4.2 Initialize of New Year FREQUENTLY ASKED QUESTION What does this message mean? The message will be prompted when initialize new year has not been performed before logging in to period FOR CUSTOMERS WHO HAVE E-LEAVE, PLEASE ENSURE ALL THE PENDING LEAVE(S) APPLIED ARE CLEARED BEFORE YOU INITIALIZE THE NEW YEAR. 34 P a g e

36 Once the backing up process is complete, you may initialize the New Year for the year Login into the Timespay8 program and select in the period field. 2. Click on Utility button and select Initialize New Year. 35 P a g e Please ensure period is

37 3. You will see the following screen: 4. Please ensure that the database year is Please select your rounding method of the B/F leave o To round leave that will be carried forward, select Round. Rounding method used is >0.5:=1 or <0.5:=0 or 0.5:=0.5 o To not round carry forward leave, select Not Round. Case #1 Case #2 Case #3 Carry Forward Leave: Round: Not Round: Carry Forward Leave: Round: Not Round: Carry Forward Leave: Round: Not Round: P a g e

38 IMPORTANT NOTE!!! (Rounding formula depend on the method selected in the Leave Setup > Leave Administration > Current Leave) 6. Carry forward leave methods: All (Balance Leave) This option carry forward ALL current year YTD leave balance to the following year. Screen capture as at Current Year Screen capture as at Following Year 37 P a g e

39 One Year (Without B/F) This option carry forward current year earned leave. Unutilized BF from previous year will not be carry forward to the following year Screen capture as at Current Year Screen capture as at Following Year Maximum Days C/F (Manual) This option carry forward balance annual leave as defined by user or the actual annual leave balance, whichever lower. Case #1 Case #2 Case #3 Annual Leave Balance: 7 days Max Carry Forward: 10 days BF in the following year: 7 days Annual Leave Balance: 10 days Max Carry Forward: 10 days BF in the following year: 10 days Annual Leave Balance: 16 days Max Carry Forward: 10 days BF in the following year: 10 days 38 P a g e

40 Maximum Day C/F (Allocation) This option carry forward leave based on number of days as specified in Leave Setup > Leave Allocation > Current Year Carry Forward column. Maximum Day C/F (By Percentage) This option carry forward based on the percentage of days as specified in Leave Setup > Leave Allocation > Current Year Carry Forward column. The formula that is used is the Entitlement % multiplied by the number of Entitled Days. 12 x 25% = 3 days 39 P a g e

41 Maximum Day C/F (Allocation by Service Year) This option carry forward Leave will be based on your Service Status. The service year will always be rounded down. Example: 3 years 5 months become 3 years None This option forfeit all balance annual leave. 40 P a g e

42 7. Initialize Employee s Cost Centre Allocation Table: This option will to copy current year the Cost Centre Allocation to the following year. Ensure it is when initializing new year for the first time. 8. Click on OK button to start the Initialize New Year function. 41 P a g e

43 9. The Holiday Table under Leave Setup will be prompted. The screen reflects the Public Holidays in the year. IMPORTANT NOTE!!! If the Public Holiday table is empty, this indicates that the application is not updated. 10. Click on Proceed to Initialise to continue. 42 P a g e

44 IMPORTANT NOTE!!! The initialization processing time will varies depending on the size of your database. Please DO NOT END TASK or force shut down during this period as it might corrupt the data. 11. Initialize New Year process is completed when the COMPLETED PROCESS! message box is prompted. To proceed click on OK button. 12. An Annual Leave Carried Forward/Forfeit Report will be generated and be prompted on the screen. This report will display the total leave Carried Forward or Forfeited to Year P a g e

45 13. With the B/F Leave Report button, print this report now or print it later by going back to the Initialize New Year function and click on the B/F Leave Report button. 14. Once the initialize New Year process is completed, staff can now apply leave for the calendar year in 2018 and proceed to process 2018 payroll. 44 P a g e Initialize of New Year for Financial Year For example, the company s leave financial year is from April to March: Initialize of New Year has to be done twice. Once in year and the other in period , to repeat Step 3 to Step 14 (Refer to Page 36-44).

46 1.5 PREVIOUS YEAR BONUS (YEAR 2018) This section covers bonus that are paid in year 2018 which is intended for 2017 tax assessment. Processing Procedures: 1. To process a bonus, click on Process Payroll button and select Bonus Record. Please ensure period is P a g e

47 2. Select BONUSP under Bonus Code in this case. 3. For the Cut Off Bonus (Mth/Period), please enter as 12/ The rest of the setting should follow chapter 1.2 (Refer to page12 onwards). IMPORTANT NOTE!!! BONUSP is a reserved code for Bonus paid in 2018, but to be declared as 2017 income. According to IRAS only Contractual bonus 2017 paid in 2018 can put back to Non-contractual bonus 2017 paid in 2018 must treat as 2017 income. DO NOT process bonus with BONUSP after 1 st March 2018, (or before February 2018 s CPF cut off deadline by 14 th March 2018). Clients are advised to use bonus codes that are NOT BONUSP for the bonus after 1 st March These bonuses will NOT be included for the tax assessment of the year P a g e

48 Part 2 IRAS Submission Page 52 Upon first login, the system will bring you to this option. You must complete this setup before proceeding. Page 60 Link existing allowance / deduction codes with their respective Tax Line Setup Voluntary CPF contributions to Singaporeans and PRs Page 68 YES Does your company have employees with Voluntary CPF? NO Fill up the IR8S form to declare the CPF refund caused by Excess contribution. Page 75 Print Page 73 Do any of your YES employees have Excess CPF? NO YES Page 160 Print Input all taxable benefits such as Accommodation, Car benefits and Pension Displays IR8S form the Page 189 Page 82 Do any of your employees have benefits which are taxable? NO Displays the Appendix 8A form Input the Share Options for Appendix 8B YES Do any of your employees have Share Options? Page 186 Print NO Displays the Appendix 8B form 47 P a g e Page 199 Page 85 Page 119 Submits electronic files to IRAS via IRAS website or CRIMSON LOGIC

49 2.1 Exclusion from IRAS Submission To exclude a certain group of employee(s) from IRAS submission, configure it in the payroll system before proceeding to the IRAS program. 1. To exclude this group of employee(s), go under Update Employee Record > Confirm & Termination Tab. 2. Under the Exclude from IRAS? Indicator field, click on the drop down button and select Yes. Once it is selected, the employee will be excluded from the IRAS submission. 48 P a g e

50 2.2 IRAS 2018 Program Before proceeding further, users MUST ensure that the latest IRAS2018 application is installed. It is a separate application from the payroll. The function of this application enable the user(s) to generate year end income tax documents (IR8A, IR8S, Appendix 8A and Appendix 8B) as well as E-Submission files for both Crimson Logic e-submission and Income Tax e-submission. How to run the application? 1. To create a shortcut icon, please go to \\TP8 folder and look for the IRAS2018.exe icon. Select the application and perform a right click. Select Send To option and select Desktop (create shortcut). 49 P a g e

51 2. Double click the icon to launch the program. 3. The main login screen will be display on your screen. VER P a g e

52 4. To login: Select the company to login by doing a left-click on the company code. Click on Logon button to proceed. Login with payroll User ID and Password to proceed. Print Date is the date that will appear at the bottom of the IR8A form. IMPORTANT NOTE!!! Only User(s) with full access in the payroll application can access the IRAS application. During the initial login, system will default it to IRAS Settings screen. Please refer to the next page on how to proceed from the screen. 51 P a g e

53 2.3 IRAS Settings Upon first login to the IRAS 2018 application, system will automatically link any employee with more than 1 profile for year 2017 based on their FIN or NRIC No. 1. Once the linkage is completed, a prompt will appear on the screen. Click OK button to view the linked records. In the event if there are no records to be linked the following prompt will appear: Sample of Linked Record: 52 P a g e

54 2. The following screen will be displayed. To proceed, the correct information must be keyed in the highlighted fields. 53 P a g e

55 IMPORTANT NOTE!!! The system will prompt the following message if you fail to provide the relevant information in IRAS Settings: When Yes is selected, the system will divert it back to the IRAS Parameter Setup screen. If No is selected, the application will shut down automatically. You will not be able to proceed further if you did not provide the relevant information. 54 P a g e

56 Fill in the blanks in accordance to your company s settings: Item Types Of Organization : Payer s ID Type : (Format yyyy = year, n = numbers, P, Q, X = alphabet) Explanation - MINDEF - Govt Department - Statutory Board - Private Sector - Others UEN-BUSINESS (ROB) Company registration ID with the following format nnnnnnnnx. E.g A UEN-LOCAL COMPANY (ROC) Company registration ID with the following format yyyynnnnnx. E.g A. ASGD - Tax Reference number assigned by IRAS ITR - Income Tax Reference number assigned by IRAS UEN-OTHERS Company registration ID with the following format TyyPQnnnnX. E.g T08FC1234A Gross commission payment by : Director fee approval date Indicate if company pays out commission by: - Monthly - Others - NA It is default to 31 st Dec Indicate the date of the company's annual general meeting or when the director's fee is approved by the board of the company. 55 P a g e

57 Item 3. Do you have 2016 bonus that are paid in 2017 (Y/N)? (Excluding BONUSP) 4. Do you have 2017 bonus that are paid in 2018 (Y/N): (For BONUSP Only) Explanation This is the non-contractual bonus declared payable in 2016 but paid in to enable this option. Important Note: The bonus amount will appear in a separate IR8A form (Supplementary Form). For 2016 Bonus paid in 2017 up to? Select the cut off period where this bonus will apply. Define bonus that are declared in 2017 service year and paid in the following year (2018). to enable this option. Important Note: When paying out this bonus in 2018, use the code: BONUSP before 1 st March 2018 Please tick if your Database was converted from other payroll software in year 2017 if database is converted from other payroll software with data migration. Important Note: OT figures may not be captured into the form IR8A if this option is not indicated. NSP Code 1 / Code 2 Select the relevant National Service Pay code used in your existing database. The default code is NSP. 56 P a g e

58 Item ERIS START-Ups Date (Share Option only) Explanation Stock options or shares granted from 16 Feb 2008 to 15 Feb 2013 (both dates inclusive). The grant date must be within the first three years of the company's incorporation. Auto Compute Residence Value (For Appendix 8A) When the option is, system will auto calculate the Residence Value when the IR8A report is generated. When the option is, system will capture amount from the allowance code if the setup below is done: Link allowance code to home leave passage from Tax Line Setup Icon. Overwrite Benefit in Kind- Cost of Home Leave Passage based on computation from Payroll Allowance In the event where no setup is done, the amount entered in the Benefits in Kind will be the amount declared on Appendix 8A. 57 P a g e

59 Item 5. Authorized person making the declaration* Designation* address of contact person* Explanation *Compulsory field Enter the name of the person who has the authority to confirm the information. *Compulsory field Designation of the Authorized Person making the declaration. *Compulsory field Address of the Authorized Person making the declaration. Important if you are using auto-inclusion scheme. This option exits the current screen and returns to the main screen. System will prompt user to save the record before exiting. Close After saving the record, system will prompt if you would want to recalculate CPF. 58 P a g e

60 NEW FEATURE!!! Users can choose to Recalculate CPF first to preview IR8A form for checking purposes, provided that there are no changes in the Allowance/ Deduction Table. IMPORTANT NOTE!!! To make changes to the settings, it can be amended by accessing the IRAS Settings icon in the main menu. 59 P a g e

61 2.4 Tax Line Setup This function allows the assignment of the tax line to the allowance and deduction codes used in the payroll system for the year, in order for the amount to reflect correctly on the employees IR8A form. Mapping Procedures: 1. Click on the Tax Line Setup icon. 60 P a g e

62 2. The allowance / deduction code maintenance table will be prompted. Ensure all codes are linked to their respective tax line. For more information, please refer to the sample IR8A Form on the next page. 61 P a g e

63 71. Gratuity 73. Notice Pay 74. Ex-gratia 75. Gratuity - Other Payment 72. Loss of Office 1. Gross Salary 2. Bonus 3. Director s Fee 61. Allowance Transport 62. Allowance Entertainment 63. Allowance Others 4. Commission 5. Pension Key from Benefits In Kind 62 P a g e

64 2.4.1 Per Diem Allowance Times Software Pte Ltd Year End Workshop User Manual Source taken from IRAS Website on Acceptable Rates for Per Diem Allowances: ividuals/2017%20acceptable%20rates%20for%20per%20die m%20allowances.pdf 63 P a g e

65 64 P a g e Times Software Pte Ltd Year End Workshop User Manual

66 65 P a g e Times Software Pte Ltd Year End Workshop User Manual

67 66 P a g e Times Software Pte Ltd Year End Workshop User Manual

68 3. Any allowance code that is used but not assigned to any tax line will be highlighted in Red. 4. To exit, click on Close button. 67 P a g e

69 2.5 Voluntary CPF Setup This section is to setup Voluntary CPF for Singapore Citizens or Permanent Residents. Please skip this step and proceed to Chapter 2.6 (page 60) if voluntary CPF is not applicable. Voluntary CPF for Singaporeans 1. Click on Voluntary CPF Setup icon and click on Singaporean. 68 P a g e

70 2. Refer to the below screen. This setup is link directly from Update Employee > MISC Tab. 69 P a g e

71 3. Tick on Show Employees Contribute Voluntary Fund? option to enable the filter function by reflecting only those whom contribute voluntary fund. Clicking on Add All button will automatically reflect voluntary contribution amount in the Vol Er or Vol Ee accordingly. In the event if the staff s voluntary fund is not found in this list. Select the staff and click on Add button. 70 P a g e

72 Voluntary CPF for Permanent Residents IMPORTANT NOTE!!! Only contributions that ARE NOT APPROVED by the CPF Board ARE considered as Voluntary Contribution. Contributions that are APPROVED by CPF board ARE NOT considered as Voluntary Contribution. 1. Click on Voluntary CPF Setup icon, select PR for Permanent Residents. 71 P a g e

73 2. Employee Fund Class screen will be prompted: In the event where graduated rate for employer CPF and normal PR first year rate for employee CPF is contributed for first year PR employees. Kindly indicate the following settings as the additional Employer CPF is considered as voluntary CPF: 72 P a g e

74 2.6 Recalculate CPF *Please note that this is a COMPULSORY step. This step will recalculate the CPF contributions for the year Recalculate CPF will breakdown the CPF into 3 different categories: Voluntary Contribution Supplementary Bonus CPF Contribution Recalculation Procedures: 1. Click on the Recalculate CPF icon. 73 P a g e

75 2. Period Initialize screen will be prompted: 3. Click on Process button to proceed with the CPF calculation. 4. Once the recalculation is completed, the program will end the automatically, and goes back to the main screen. 74 P a g e

76 2.7 Modify IR8S This function allows user to modify the IR8S record for individual employee. The IR8S Form is part of the return of an employee s remuneration made by an employer under section 68(2) of the Income Tax Act (Cap. 134). What is IR8S? Form IR8S shows details of employer's and employee's CPF contributions. This form is required if: a) The CPF contributions exceeded the statutory contributions required under the CPF Act. b) The employer voluntarily contributed to CPF which is not compulsory under the CPF Act. Foreigners are not required to make CPF contribution. The CPF contributions made by employer for foreign employees or on director s fees are considered as voluntary contributions. However, this is not applicable if the employee is posted overseas as the employee s contribution is not deductible and the employer s contribution is not taxable. 75 P a g e

77 When is IR8S filed? IR8S form has to be filed with CPF refund information when there is CPF excess after submitting December s CPF or if the CPF excess is too huge to recover by modifying the Employee CPF or Employer CPF. Modification Procedures (CPF Excess Refund): 1. Click on CPF Excess/Short icon to check on which employee has CPF excess. 76 P a g e

78 This report shows the amount of CPF Excess that the employee has for the year. It is reflected under Employee Variance and Employer Variance column. What does the amount under Employee/ Employer Variance Column defines? If amount is positive There is an excess in the CPF contribution, you will need to request for a refund. If amount is negative There is a short fall in the CPF contribution, you will need to pay the amount back to CPF. 2. Go to Modify IR8S > Refund Info tab to fill the information. 77 P a g e

79 How to derive with the OW/AW Wages Amount? Generate the employee Pay History and calculate CPF Excess with the following formula: CPF Excess = Total CPF contributed (OW+AW) (CPF Max) In the scenario given below: CPF Excess = ( ) = 4400 To fill up the form, enter the amount declared under OW/AW Wages under Modify IR8S reflected on the CPF Adjustment Listing Report, the amount is $4, P a g e

80 3. For OW or AW Wages From Date, enter 01/02/2017 and the end of the month of the CPF Excess in the OW or AW Wages To Date. In this case enter 28/02/ Under the Employee s Refund and the Employer s Refund, key in the amount which is taken from the CPF Excess/Short Report under Employee Variance and Employer Variance column. IMPORTANT NOTE!!! Please indicate the date refund as it was received. If the refund has not been received, please indicate the date the claim was made or expected to be made as at the date of completion of this form. 79 P a g e

81 5. Once refund information is filled, Form IR8A item (7) will reflect as NA in the amount column. 80 P a g e

82 6. This is what it will look like in the IR8S Report Section C: 81 P a g e

83 2.8 IR8S Report Times Software Pte Ltd Year End Workshop User Manual This section allows the user to print IR8S report. Generating Procedures: 1. Click on IR8S Report icon. 82 P a g e

84 2. The below print dialog box will appear. 3. Click on Preview button to view the IR8S report. Sample IR8S report is shown in the following page. 83 P a g e

85 Sample IR8S Form Times Software Pte Ltd Year End Workshop User Manual 84 P a g e

86 2.9 IR8A Report IMPORTANT: DO YOU HAVE ANY EMPLOYEES POSTED OVERSEAS? IF YES, PLEASE REFER TO PAGE 177. IF YOU DO NOT HAVE SUCH EMPLOYEES, PLEASE PROCEED TO THE NEXT STEP. This section enables the users to generate various reports for both checking purposes and submission purposes IR8A Report The following steps will enable the user to generate, view and print the IR8A reports / (IR8E for electronic submission). This is important for users who are using the manual submission. Generating Procedures: 1. Click on IR8A Report icon. Select IR8A Report. 85 P a g e

87 2. IR8A Form Print Dialog box will appear: 86 P a g e

88 Item Print Supplementary Forms Only (if applicable)? To print IR8E Heading? Print Employee Number on IR8A Form Explanation to print Supplementary Forms (for IRAS YE2016) The form header will display FORM IR8E instead of FORM IR8A. Please note that if you are doing manual submission, this option must be untick. To print the employee number on IR8A form. It will be displayed on the top left side corner of the form. Print (POSTAL CODE) Postal Code description is indicates in the IR8A form. 87 P a g e

89 Item Do not Print the Service Years? Do not round the Community Fund/Donations? Explanation (II) Lump sum payment (item d4 of Form IR8A) i. The details of payment are to be classified into the respective fields in the table within the Form IR8A. ii. Compensation for loss of office is not taxable. The payment should not include taxable components such as gratuity, notice pay, ex-gratia payment, etc. iii. Employer needs to state the: respective taxable components of the lump sum payment under items 4(i), (ii), (iii) and (iv) and declare the total amount under item d4; amount of Compensation for loss of office under item 4(v); date of approval (if approval has been obtained from IeRAS) that the compensation for loss of office is not taxable; and reasons for the payment, the basis of arriving at each component and the employee s length of service. The IR8A form does not allow you to input cents under: Income (items a to e) Deduction (Employee's compulsory contribution to CPF, Donations, Contributions for Mosque Building Fund and Life Insurance premiums) IRAS give the benefit to taxpayers when rounding up or down to the nearest dollar. For income fields, drop the cents. For the items d1 to d9, drop the cents only after obtaining the total for items d1 to d9. For deduction fields, round up to the next dollar. E.g.1 Salary of $31, is to be entered as $31,220 (drop the cents). E.g.2 Deduction such as CPF contributions of $5, is to be entered as $5,567 (round up). 88 P a g e

90 Item Do not round the nearest dollar in the IR8A Report? Staff excluded from IR8A Submission Run Explanation Display non-rounded figure of the community funds. to exclude Staff with Yes indicator under Exclude from IRAS. IR8A form will not be generated. Batch Indicator Allows user to show Original figures, Amendment figures (if any), or the Final figures which is the combination of both the original and amendment. Name of CPF Fund This enables user to choose the name of the Employee s compulsory contribution fund. It is either CPF or Designated Pension/Provident Fund. The screenshot shows a sample of how it will appear in the IR8A form. 89 P a g e

91 Item Preview Explanation Click the Preview button to preview the IR8A report. 90 P a g e

92 Print Close Item Explanation Click on Print button to directly send IR8A forms for printing to the printer. This option exits the current screen and returns to the main screen. Additional Filter Information: Item Sorted By Explanation Allow user to sort IR8A forms by the following options: Employee To filter a range of employee by the employee number. Tabs Employee BY EMPLOYEE NUMBER 91 P a g e

93 Item Explanation Department Cost Centre BY DEPARTMENT BY COST CENTRE IMPORTANT NOTE!!! In the final submission, IRAS will always round up the community fund contributions and round down your earnings as their e-submission system only accept rounded figure without cents. 92 P a g e

94 2.9.2 IR8A Checking Report Times Software Pte Ltd Year End Workshop User Manual This report allows the user to print out the IR8A Checking Report for checking purposes before submission. Generating Steps: 1. Click on the IR8A Report icon. Select IR8A Checking Report. 93 P a g e

95 2. IR8A Checking Report Print Dialog box will appear: 94 P a g e

96 3. The following is a sample of the IR8A Checking Report upon clicking the Preview button: 95 P a g e

97 2.9.3 IR8A Checking Report Landscape Format The IR8A Checking Report allows user to perform checking in one page view. Generating Steps: 1. Click on IR8A Report icon. Select IR8A Checking Report Landscape format. 96 P a g e

98 2. IR8A Checking Landscape Format Dialog box will appear: Item Export IRAS to excel? Explanation This option allows user to export Landscape Checking Report to excel: on Export IRAS to excel? and the File Location field will be activated. 97 P a g e

99 3. The following is a sample of the IR8A Checking Report Landscape Format upon clicking the Preview button. Here is a sample of the IR8A Checking Report Landscape Format in excel format. 98 P a g e

100 2.9.4 Grand Total IR8A Checking Report This report summarizes the company s income tax report by subtotaling the income tax items to its respective lines. Generating Steps: 1. Click on IR8A Report icon. Select Grand Total IR8A Checking Report option. 99 P a g e

101 2. Click on the Preview button to generate the grand total figure for IR8A. 100 P a g e

102 3. The following is a sample of the IR8A Checking Report upon clicking the Preview button. 101 P a g e

103 How to tally Grand Total IR8A Checking Report with Pay History (Whole Company)? 1. Generate Company s Pay History from Timespay8. Internal Reports > Pay History Report: 102 P a g e

104 2. Under print dialog for Employee Pay History Report, select Print By : By Whole Company 3. Click on the Preview button to generate the Pay History Report. 103 P a g e

105 4. The following is a sample of the Pay History Report by Whole Company: 5. Generate Grand Total IR8A Checking Report from IRAS Application. IR8A Report > Grand Total IR8A Checking Report: Select option as follows and click on Preview : 104 P a g e

106 6. The following is a sample of the IR8A Checking Report: The amount under Gross Salary, Fees, Leave Pay etc. comprised item from Tax Line 1 is $ Add up item from the pay history: = $ P a g e

107 2.9.5 IR8A Adjustment This section allows user to manually edit the IR8A details for either Original submission or Amendment submission. Amendment Procedure: 1. Click on IR8A Report icon and select IR8A Adjustment option. 106 P a g e

108 2. Adjustment Employee Record window will be prompted. This window shows which staff has an IR8A Amendment record. A blank screen would define that there are no amendment records for any employees. 3. To create amendment record, click on New button. 107 P a g e

109 4. The adjustment window will be prompted. 5. Select the affected employee from the button located beside Employee code. 108 P a g e

110 6. Indicate IRAS Year as Current Year and the Batch Indicator as Amendment. 109 P a g e

111 7. Fill in the details accordingly. How to do Amendment? Example 1: Actual Salary = $28,000 Original Submission = $24,000 Amended record should show as $4, P a g e

112 Example 2: Actual Bonus = $3,000 Original Submission = $5,000 Amended record should be shown as -$2, Click on the Save button to save the changes. 111 P a g e

113 9. After exiting the adjustment window, the Adjustment Employee Record window will reflect the employee details of the employee who has an amendment record. Item Source Document Tabs Explanation A indicates that employee has an adjustment in Amendment Record. O indicates that employee has an adjustment in Original Record. New: To create an amendment record for affected employee. Edit: To make changes to existing records created. Delete: To remove existing records created. Import: To import amendment record in batch using excel template provided. Download Template: Allow user to download excel template file to perform Import function. Close: This option allows user to exit from Adjustment Employee Record and return to the main screen. 112 P a g e

114 NEW FEATURE!!! Download Template Function User can download excel template to upload a batch of employee if applicable. 1. Click on Download Template, the Download Template Window will be prompted. 2. Indicate where to save the file under Download To and click on Download. 113 P a g e

115 3. Sample of Import IR8A Adjustment Import Template. Row 2 indicates definition of items in Row 1. Please note to indicate records from Row 4 onwards. 4. Once the file is ready for importing. Click on Import and the Open window will be prompted. Select the file to be imported and click on Open and the records will be reflected on the Adjustment Employee Record window. 114 P a g e

116 5. After amendment details are ready. Proceed e- Submission file generator (Page 114) change the Batch Indicator to Amendment as shown below. 115 P a g e

117 IMPORTANT NOTE!!! Two important things to take note of: 1. Existing figures will be replaced with the amended figures in the IR8A form. 2. Indicate the differences for IRAS amendment submissions. For more information, please refer to the example below. Only prepare the affected employees' records Only edit the fields that are required to be amended. Leave other numeric fields not affected by the error blank Ensure the accuracy in all information before submitting to IRAS. IRAS do not allow deletion after submission. 116 P a g e

118 2.9.6 Pay History Report By Employee Pay History Report is used to check on Taxable Income, Additional Wage Capping and Employees CPF contribution. Generating Procedures: 1. Click on IR8A Report icon. Select Pay History Report by Employee option. 117 P a g e

119 2. The Reports Parameter window will appear. Select the period range, then select employee (optional) and click on the Process button to generate the report. 3. The following is a sample of the Pay History Report upon clicking the Preview button. 118 P a g e

120 2.10 E-Submission This section allows user to setup the parameters and generate the Auto-Inclusion Scheme text files required for E-Submission. This application caters to two types of e-submission method which complies with the IRAS Auto-Inclusion Scheme. They are: Submission Type Submission Medium Income Tax Format Method Crimson Logic Method Submit via IRAS website Submit via CRIMSON LOGIC website Description This is a free service provided by IRAS. This is an electronic application developed by Crimson Logic Pte Ltd and subscription is required. What is IRAS Auto-Inclusion Scheme (AIS)? Under the Auto-Inclusion Scheme (AIS) for Employment Income, employers do not need to distribute hardcopies of the IR8A/ IR8S/ Appendix 8A/ Appendix 8B to their employees anymore as employees can view their annual remuneration via their pay slips or their auto included income via the Income, Deductions and Reliefs Statement (IDRS) at mytax Portal P a g e

121 INCOME TAX FORMAT Times Software Pte Ltd Year End Workshop User Manual This section allows the user to generate the text file for submission to IRAS via My Tax Portal. IMPORTANT NOTE!!! This E-Submission DOES NOT link directly to IRAS Website The application only generates the output file for uploading. User will need to login into IRAS E- Submission Website to upload the text files for submission. Generating Steps: 1. Click on the E-Submission icon. Select Income Tax Format option. 120 P a g e

122 3. The IRAS Generator Dialog Box will be prompted. Item File Detail Explanation This indicates the default directory of where the text file will be saved. The system will direct the text file to the following default directory. C:\Timesoft\TP8\IRAS To change the directory, click on button at the top right corner of the dialog box to select the directory. Please note that system will not generate all files to the directory, only the relevant files based on employee s details will be generated. Staff Excludes From IR8A Submission Run Staff with Yes indicator under Exclude from IRAS. IR8A form will not be generated. 121 P a g e

123 Item Batch Indicator Explanation First submission to IRAS for the employee select Original under Batch Indicator. Subsequent submission to IRAS for the employee when there is error on figures on first submission select Amendment under batch indicator. Name of CPF Indicate CPF under Name of CPF Fund. 122 P a g e

124 Generate This option generates text files to the designated file location. During the file generation process, the system will check through the employees details for compulsory IRAS related information. If the system detects missing information, it will force user to enter the relevant information before proceeding further. (Illustrated on Pages ) If there are no missing information, system will generate text file and prompt COMPLETED PROCESS. System will reflect the total count for the respective forms at the bottom of the screen. Close This option exits current screen and returns to main screen 123 P a g e

125 a) Nationality Code Times Software Pte Ltd Year End Workshop User Manual Linking of nationality code to its respective IRAS nationality code is mandatory. Otherwise Nationality code not defined. Please setup the IRAS code! message will be prompted: 124 P a g e

126 The system will then prompt a list of nationality codes currently used by the payroll system. To enter the missing IRAS Nationality Code under IRASCODE, click on button to browse for the codes: 125 P a g e

127 The search dialog window will be prompted: User can search by country name or IRAS Nationality Code to perform a wildcard search by entering a specific key word in Search Text field and click on Search : For the full list of IRAS Nationality Code, please go to: Businesses/List%20of%20Country%20and%20Nationality%20 Codes.pdf 126 P a g e

128 1. Enter Key Word: Mal and click on search 2. Select Malaysia and click on OK. 127 P a g e

129 3. The IRAS Nationality code will be reflected in the Nationality Code Setup Window. Click on Close to proceed. 128 P a g e

130 b) Fin Number Times Software Pte Ltd Year End Workshop User Manual Fin Number is a mandatory field for IRAS Submission. System will prompt Update Fin Number Dialog window when the employee s FIN Number is absent. 129 P a g e

131 To resolve the issue you could either copy the FIN Number from NEW_IC field to FIN_NO field. Click on Close to proceed and click Yes when system prompt Confirm window to save changes. Otherwise, FIN Number details can be entered under Update Employee > Other tab on the SG NRIC# / Fin No # field. 130 P a g e

132 c) Gender Times Software Pte Ltd Year End Workshop User Manual If the employee s gender is missing in the Update Employee the system will then generate a list of affected employees in the Update Gender Dialog. 131 P a g e

133 To resolve the issue, select Gender from accordingly. Otherwise, Gender can be entered under Update Employee > Other tab on Sex/ Title field. Click on Close to proceed and click Yes when system prompt Confirm window to save changes. 132 P a g e

134 d) Address Times Software Pte Ltd Year End Workshop User Manual Address is a mandatory field for IRAS field. System will prompt Update Address Dialog window when the employee Address is absent. 133 P a g e

135 To resolve the issue, enter employee s address TO ADDR1, ADDR2, ADDR3 and POSTAL_CODE fields respectively. Click on Close to proceed and click Yes when system prompt Confirm window to save changes. 134 P a g e

136 How to retrieve generate text file Location: To retrieve the file(s), simply go to C:\Timesoft\TP8\IRAS folder. Find the file(s) starting with your company code. For example, company code TSPL, IRAS file(s) name is TSPLIRAS_IR8A_YYYYMMDDHHMM.txt. The files generated would be in the desired directory. Here is a sample of the IRAS text file: 135 P a g e

137 CRIMSON LOGIC FORMAT Times Software Pte Ltd Year End Workshop User Manual This section allows the user to generate the text file for submission using CRIMSON LOGIC FORMAT Generating Steps: 1. Click on E-Submission icon. Select Crimson Logic Format option. The system will display the following dialog box. 136 P a g e

138 3. The IRAS Generator Dialog Box will be prompted. Item File Detail Explanation This indicates the default directory of where the text file will be saved. The system will direct the text file to the following default directory. C:\Timesoft\TP8\CrimsonLogic To change the directory, click on button at the top right corner of the dialog box to select the directory. Please note that system will not generate all files to the directory, only the relevant files based on employee s details will be generated. Staff Excludes From IR8A Submission Run Staff with Yes indicator under Exclude from IRAS. IR8A form will not be generated. 137 P a g e

139 Item Global update IRAS submission to zero values? Batch Indicator Explanation This option remains unticked. First submission to IRAS for the employee select Original under Batch Indicator. Subsequent submission to IRAS for the employee when there is error on figures on first submission select Amendment under batch indicator. Name of CPF Indicate CPF under Name of CPF Fund. 138 P a g e

140 Generate This option generates text files to the designated file location. During the file generation process, the system will check through the employees details for compulsory IRAS related information. If the system detects missing information, it will force user to enter the relevant information before proceeding further. (Illustrated on Pages ) If there are no missing information, system will generate text file and prompt COMPLETED PROCESS. System will reflect the total count for the respective forms at the bottom of the screen. Close This option exits current screen and returns to main screen 139 P a g e

141 How to retrieve generate text file Location: To retrieve the file(s), simply go to C:\Timesoft\TP8\CrimsonLogic folder. Find the file(s) starting with your company code. For example, company code TSPL, IRAS file(s) name is TSPLIRAS_CS_IR8A.txt. The files generated would be in the desired directory. Here is a sample of the IRAS text file: 140 P a g e

142 2.11 Guide to Validation & Submission Application The Validation & Submission Application is a free application provided by IRAS. It allows employers to validate and submit files (.txt or.xml) generated from a supporting payroll software to IRAS. Installation Procedures: 1. At IRAS website choose Businesses > Employers > Auto-Inclusion Scheme (AIS) for Employment Income > Validation and Submission Application. /Auto-Inclusion-Scheme--AIS-/Validation-and-Submission- Application/ 141 P a g e

143 142 P a g e Times Software Pte Ltd Year End Workshop User Manual

144 2. Click Validation and Application Version 8.0 to download and install the program. Common Errors Encountered during Download IRAS Validation and Submission Application will not be downloaded if the Java is out of date. Hence click on Update (recommended) to update Java and download the application again after Java is updated. 143 P a g e

145 Launch the application Times Software Pte Ltd Year End Workshop User Manual 1. Launch by double-clicking the AIS Salary File Validation and Submission Application from the desktop. The application will prompt Do you want to run this application, click on Run to proceed. 144 P a g e

146 2. The IRAS Validation and Submission Application window will prompted after loading: To proceed click Next. 145 P a g e

147 Begin validating a file Times Software Pte Ltd Year End Workshop User Manual 3. Click Browse button to select the generated file from the payroll software 146 P a g e

148 4. Select the file to validate and click Open button to load the selected file into the application file. 5. Click on the Validate button to start the validation process for the selected file. 147 P a g e

149 6. For successful validation the message File validation is successful will be shown. 7. Click Next button to proceed. 148 P a g e

150 What to do when errors are detected during Validation a. In the event when the application detects an error(s). Error will be reflected as shown. b. To save the list of error(s), click button. User can contact us by sending us the error log file on how to rectify the error(s). c. After rectifying all errors, regenerate the file for validation. 149 P a g e

151 Verify summary of file Times Software Pte Ltd Year End Workshop User Manual 1. To verify the summary of the file before submitting to IRAS, click on button. 2. User are able to view individual employees records at the bottom row of the file summary. Each row represents an employee s record. 150 P a g e Note: The individual employee s record summary is only applicable to Form Type IR8A.

152 3. Click on if there is more file(s) to be submitted to IRAS. Note: Maximum number of files per submission is 4. If there are more than 4 files to be submitted, you have to repeat the validation and submission process for the remaining files. 151 P a g e

153 4. Once ready, click on to login to mytax Portal to submit the file(s). 152 P a g e

154 5. System will prompt the following window: Click Yes to proceed. 6. System will prompt Confirmation window as follows: Click Yes to proceed. IMPORTANT NOTE!!! Kindly ensure you are connected to the Internet, as you will be directed to IRAS Website for submission. Make sure your Sing Pass account has been authorised to upload the submission. 153 P a g e

155 Login to mytax Portal 1. The application will direct to mytax Portal webpage. 2. Under Login for select Organisation/Business Tax Matters with select either SingPass or IRAS PIN to login. 154 P a g e

156 3. Login with SingPass ID and enter Password accordingly. 4. Enter 2FA with registered mobile number. 155 P a g e

157 5. Continue by entering the Organisation Tax Reference Number. IMPORTANT NOTE!!! Users who are not authorized to the upload the data file will be prompted with the screen as follows: 156 P a g e

158 6. To upload data file, click on Select File button. 7. Go to Document Folder to select salaryzippedfile.iras file. 157 P a g e

159 8. Click on Upload Times Software Pte Ltd Year End Workshop User Manual 158 P a g e

160 Successful Upload 1. Upon successful upload, the Upload Data File for Employment Income page will be shown. 2. Print the acknowledgement page or take down submission reference number for future reference. 159 P a g e

161 2.12 Benefits in Kind What is Benefits in Kind? Benefits in Kind is a non-wage compensation given to employees in addition to their normal wages or salaries. If employee DO NOT HAVE Benefits in Kind, you can skip this step. This section allows the user to input any taxable benefits which are not paid through the payroll system in order for it to reflect in the Appendix 8A. This information could be keyed in for employees who are employed in Singapore any time during the preceding year. Which groups of employees are required to declare their benefits in the Appendix 8A? Full Time Resident Employee Part Time Resident Employee Non Resident Employee Company Director (Including non-resident director) Pensioner IMPORTANT NOTE!!! You do not need to prepare FORM IR8A and Appendix 8A for the period that your employee is posted overseas UNLESS his/her overseas assignment is incidental to his/her employment in Singapore. 160 P a g e

162 Benefits in Kind Times Software Pte Ltd Year End Workshop User Manual Additional Record Procedures: 1. Click on Benefits in Kind icon. Select Benefits in Kind. 161 P a g e

163 2. Benefits In Kind window will be prompted. This window shows which staff has a Benefits In Kind Amendment record. A blank screen would define that there are no Benefits In Kind records for any employees. 3. To create amendment record, click on New button. 162 P a g e

164 4. The Additional Employee Record window will be prompted. 5. Select the employee from the button located beside Employee code. 163 P a g e

165 IR8A Additional Record Tab Times Software Pte Ltd Year End Workshop User Manual This section allows the user to enter additional record details of employee s benefits in the Appendix 8A. Item Director s fees approved at the company s AGM Notes Director s fees are assessed in the year that a director becomes entitled to the fees. Retirement benefits including gratuities/ pension /commutation of pension /lump sum payment.etc from Pension/ Provident fund All retirement benefits including gratuities and pensions are taxable unless they are specifically exempted under the Income Tax Act. Amount accrued up to $ The retirement benefits accrued from existing approved pension and provident funds up to 31 Dec 1992 will remain tax-exempt. Amount accrued from 1993 Amount are taxable only on funds accrued from 1 Jan 1993 to date of retirement. The funds will be taxed at the time the benefits are received. 164 P a g e

166 Item Contribution made by employer to any Pension/Provident Fund constituted outside Singapore Notes Any contribution made by employer to any Pension/Provident Fund outside Singapore is taxable. Declare the amount and name of the fund. Are contributions Mandatory? Tick if contribution made above by employer to any Pension/Provident Fund constituted outside Singapore is/are mandatory. Default grey tick is unticked. Full Wages contributions charged/deductions claimed by a Singapore permanent establishment? Section 45 applicable indicator? (applicable for foreign director s withholding tax) Tick if full wages contributions charged/deductions claimed by a Singapore permanent establishment. Default grey tick is unticked. If Section 45 withholding tax has been paid on director s fees payable to a nonresident director, indicate S45 applied against your employee s designation on the Form IR8A. 165 P a g e

167 Item Whether approval has been obtained from CPF board to make full contributions (for SPR granted on/after 31 Dec 2002) Renouncement of SPR Whether Voluntary CPF Contribution are obligatory by contract of employment? Adjust Voluntary Contribution? Notes For PR 1 st year or 2 nd year contributed full CPF rate or full employer rate & graduated employee rate. Indicate the date of cancellation for permanent residence status. Indicate Yes, No, Na if voluntary CPF contributions are obligatory by contract of employment. To manually adjust the Voluntary CPF contribution: 1) Check on the Adjust Voluntary Contribution? checkbox. 2) Click on the Save button. You will see two fields appear on the screen as shown below. 3) Enter the CPF amount. This will override the computed amount, in the field provided. Adjust Employer Variance? To manually adjust the excess or voluntary contribution in the IR8A Form: 1) Check on the Adjust Employer Variance? checkbox. 2) Click on the Save button. 3) Enter the amount that will override the computed amount in Variance Amount input field. 166 P a g e

168 Item Approval obtained from IRAS for Compensation/ Retrenchment benefits Notes Indicate approval if there are pay out item(s) with tax line 72, remember to obtain IRAS approval for tax relief. Kindly fill in the indicator and approval date. Date of Approval Employee s Income Tax Borne by Employer? If employee s income tax is borne by employer select from Tax fully borne by employer or Tax partially borne by Employer or A fixed amount of income Tax borne by Employee. If Tax partially borne by Employer or A fixed amount of income Tax borne by Employee is selected a textbox will appear for user to enter the amount. Gains from exercise of stock option? Indicate if ESOP/ESOW plan granted while an individual is exercising employment in Singapore / NOT exercising employment in Singapore. 167 P a g e

169 Housing Tab Times Software Pte Ltd Year End Workshop User Manual This section allows the user to enter details of employee s residential related benefits in the Appendix 8A. a. Starting YA2015, IRAS no longer requires the declaration of furniture and fittings details. Item Address 1 Address 2 Address? Furniture Type Enter accommodation address. Notes In the event if there is a change in accommodation within the year, enter 2nd address under Address2 tab. If the address is the same with the address in UPDATE EMPLOYEE, just tick on the checkbox. If the premise is partially furnished, the value of the furniture and fitting will be 40% of the Annual Value. If the premise is fully furnished, the value of the furniture and fitting will be 50% of the Annual Value. 168 P a g e

170 Item Period of Occupation No of Days Number of employee sharing the Quarter Annual Value Total Value of Furniture/Fitting Rent Paid to landlord including rental of Furniture/Fittings Rent paid by employee Residence Calculate Clear Overwrite Notes Number of days accommodation is provided by the employer. Auto populated by system after Period of Occupation is indicated. Number of employees living / sharing the accommodation Annual value (AV) of the property or market rent of the property Auto populated by system after Furniture Type is indicated. Annual rent paid to landlord Auto populated by system after Total Value of Furniture/Fitting and Furniture Type or Rent Paid to landlord including rental of Furniture/Fittings is indicated. Click on Calculate so that system will populate Residence Value This option clears all data entered. This option allows disable auto population of rescidence values and allows user to define residence value to be declared. 169 P a g e

171 Item Public Utilities Telephone Notes Utilities bills will be taxed based on the actual amount paid by employer. Telephone and cable bills will be taxed based on the actual amount paid by employer. Pager Suitcase Golf Bag/accessories Camera Servant/ Gardener/ Upkeep of Compound Driver Save Cancel Close Gardener and housekeeping costs are $35 per month or actual wages paid by employer, whichever is lower. Amount Taxable = [Annual cost of driver x (private mileage / total mileage)] This options Saves all record ot changes made. This options cancel data or changes made. This options exits current screen and returns to Benefits In Kind Window 170 P a g e

172 Hotel / Travel Tab This section will allow the user to enter details of Hotel Accommodation for the staff s dependents and children as well as Travel benefits entitled in Appendix 8A. Item 1. Actual Hotel accommodation/ Service Apartment within hotel building 2. Amount paid by employee 3.a. Cost of home leave passages and incidental benefits provided to employee and his family b. Interest payment made by employer to the third party on behalf of an employee and/or loans provided by the employer interest free or at a rate below market rate to the employee who has substantial shareholding or control or influence over the company c. free or subsidised holidays including air passage,etc. Notes According to IRAS, if the employee stays in a service apartment and is situated in a hotel premises, you are required to declare under this portion. Starting from YA2015, you are required to declare the full amount for hotel accommodation/service apartment paid by employer. Tax Treatment of Home Leave Passage From YA 2018 The home leave passages provided to expatriates, their spouses and children are taxable in full. Loans to Company Directors Benefits directors derive from loans are taxable. The Income Tax Act regards company directors as employees, the benefits from interest-free / subsidised loans are taxable as employment benefits. Information on prime lending rates is available on the MAS website. Overseas holiday trip and Holiday reimbursement is taxable 171 P a g e

173 Others Tab This section allows the user to key in other benefits which are not covered in the previous tabs. Item Education expenses including tutor provided Notes Tax treatment of training fees and expenses paid by the employer including course fee subsidies, scholarship awards, overseas training related expenses. Non-monetary awards/benefits eg. Non-cash gift or long service awards exceeding $200 Tax treatment of awards given to employees for passing examinations, innovation, long-service, service excellence, referrals, work performance, etc. Entrance/transfer fees and annual subscription to social or recreational clubs Tax treatment of subscriptions paid by the employer for employees including gym subscriptions and subscription fees for professional networks. 172 P a g e

174 Item Gains from assets,e.g. vehicles, property,etc sold to employees at a price lower than open market value Notes Tax treatment of staff discounts on products and services given to employees, employees' family members, relatives and friends. Taxable Staff Discount = Market Value - Amount Paid by Employee If the market value of goods or services offered to the employee exceeds $500, the full amount of the staff discount enjoyed is taxable. For example, if the market value of a handphone is $600 and the employee is able to purchase the handphone at $550 from his employer, the taxable amount is $50 ($600 - $550). The benchmark of $500 is applicable to market value inclusive of GST where applicable Full cost of motor vehicle given to employee Car-related benefits given to an employee are taxable based on the value of benefit derived from the employee s private usage of the car or car-related items. Taxable conditions includes 1. Car park charges reimbursed or provided by employer when an employee drives from home to work and parks his own car in the office car park or a nearby car park (season parking or daily car park charges) 2. Taxes, repairs and maintenance expenses of employee's own vehicle 3. Reimbursement on ERP Charges 173 P a g e

175 Item Car benefit. Please refer to IRAS website for more detailed information. Notes Car benefits given to an employee are taxable based on the value of benefit derived from the employee s private usage of the car items. (a) New Car provided by employer Petrol cost borne by Employee Value of Benefit 3/7 x (Car Cost Residual Value)/10 + ($0.45/km x private mileage) 3/7 x (Car Cost Residual Value)/10 + ($0.55/km x private Employer mileage) i) 3/7 refers to the use of the car outside office hours for private matters, which is estimated at 3 out of 7 days in a week. ii) "Car cost" refers to the acquisition cost of a car (inclusive of COE) paid or payable on the date of purchase. If the car is not provided to the employee for the full year, the cost of the car can be apportioned based on the number of days that the car was provided to employee in the year. iii) Residual Value is equal to 80% of the Open Market Value (OMV) of the car if the car was registered on or after 1 Nov The OMV of the car at the time of purchase is reflected on the vehicle registration card. (b) Leased car provided by employer Petrol cost borne by Value of Benefit Employee 3/7 x Rental Cost incurred by the employer 3/7 x Rental Cost incurred by the employer + ($0.10km x Employer private mileage) i) 3/7 refers to the use of the car outside office hours for private matters, which is estimated at 3 out of 7 days in a week. ii) If you have rented a car for your employee's use, the rental cost of the car should be used instead of the car cost. For more information on how to compute the taxable value of a second-hand car, refer to Links>Calculators>Individual Income Tax>Car Benefit Calculator 174 P a g e

176 Item Insurance premiums paid by the employer Notes Tax treatment of insurance premiums paid by employers including personal insurance policies, group insurance policies, travel insurance policies and workman compensation. Taxable Condition includes: 1. Personal Insurance policy where employee is the policyholder. 2. Group Insurance policy (e.g. group insurance policies covering life, personal accident or critical illness) where employees are entitled to the payout contractually The employee is taxable on the premium as he receives benefits in the form of an insurance protection. 175 P a g e

177 Remarks Tab This section allows user to enter remarks which will be reflected on the IR8A Form for E-Submission. 176 P a g e

178 Misc Tab This section contains other miscellaneous items for tax reporting. How do employers report if employee was posted overseas? Step 1: Go under Benefits in Kind > Misc Tab, indicate exempted amount in Exempt Income/ Income subject to Tax Remission/ Income from Overseas Employment/ Income from Overseas Pension Fund with Tax Concession. 177 P a g e

179 Step 2: Go under Others Tab, indicate insurance premium if applicable. Step 3: Go under IR8A Report > IR8A Adjustment. Indicate batch indicator to ORIGINAL, enter CPF contributions, donations, contributions to Mosque Building Fund for the whole year accordingly. Step 4: Click Save button to save the entry. 178 P a g e

180 6. After exiting the additional employee record window, the Benefits In Kind (Original Record) window will reflect the list of employee who has a Benefits In Kind record. Tabs Item Explanation New: To create an amendment record for affected employee. Edit: To make changes to existing records created. Delete: To remove existing records created. Import: To import amendment record in batch using excel template provided. Download Template: Allow user to download excel template file to perform Import function. Close: This option allows user to exit from Adjustment Employee Record and return to the main screen. 179 P a g e

181 NEW FEATURE!!! This option allows users perform multiple deletion. 1. Tick applicable employee under selected column. 2. To delete click on Delete button. 180 P a g e

182 2.13 Benefits in Kind Amendment This section allows the user to manually edit the Benefits in Kind details for either Original submission or Amendment submission. Amendment Procedure: 1. Click on the Benefits In Kind icon and select Benefits In Kind Amendment option. 181 P a g e

183 2. Benefits In Kind (Amendment) window will be prompted. This window shows which staff has a Benefits In Kind Amendment record. A blank screen would define that there are no amendment records for any employees 3. To create amendment record, click on New button. 182 P a g e

184 4. The additional employee record window will be prompted. 5. Select the affected employee from the button located beside Employee code. 183 P a g e

185 6. Fill in the details accordingly. How to do Amendment? Example 1: Actual Life Insurance Premiums Paid By Employer = $5,000 Original Transmission = $4,500 Amended record should show as $500 Example 2: Actual Life Insurance Premiums Paid By Employer = $3,000 Original Transmission = $3,300 Amended record should be shown as -$ P a g e

186 7. Click on Save button to save the changes. System will prompt Record saved. message upon saving. IMPORTANT NOTE!!! There are two important things to take note: 1. The existing figures in the Benefits in Kind will be overwritten with the amended figures. 2. User will only need to indicate the difference for IRAS amendment submissions. For more information, please refer to the example below. 185 P a g e

187 2.14 Appendix 8A This section allows the IRAS program to print the Appendix 8A report. IMPORTANT NOTE!!! This report will only display a report when there are entries under the Benefit In Kind section. If there are no entries, NO report will be generated. Generating Steps: 1. Click on Appendix 8A icon. 186 P a g e

188 2. Appendix 8A Form Print Dialog box will appear: Item Batch Indicator Explanation Allows user to show Original figures, Amendment figures (if any), or the Final figures which is the combination of both the original and amendment. Staff excluded from IR8A Submission Run to exclude Staff with Yes indicator under Exclude from IRAS. IR8A form will not be generated. 187 P a g e

189 3. The following is a sample of the Appendix 8A form upon clicking the Preview button: 188 P a g e

190 2.15 Shares Option What is Appendix 8B? Appendix 8B is only applicable to companies that have stock option. This portion must be completed and signed off by the company secretary/director, representative of a non-resident company or a person authorized by the employer. In respect of an employee who has derived gains or profits; either directly or indirectly from the exercise or any benefit where such a right/benefit was obtained by any office or employment reason. This section is for users to key in the Appendix 8B information. Generally, ESOP is taxable in the year in which it is exercised. The date of exercise is the date when the gains accrued to your employee. ESOW is taxable in the year in which it is granted. However, if there is a vesting period imposed on the ESOW, the gains will be taxed in the year in which it is vested. If a moratorium (selling restriction) is imposed on ESOP/ESOW plan, the gains are accrued on the date when the moratorium is lifted. 189 P a g e

191 Times Software Pte Ltd Year End Workshop User Manual To furnish details of the stock option gains derived by the employee in year 2017 and segregating the gains into the following schemes, where applicable:- Item (i)company registration number (ii) Name of company (iii) Indicate type of plan granted (iv) Date of exercise of ESOP or date of vesting of ESOW plan (if applicable). If moratorium (i.e. selling restriction) is imposed, state the date the moratorium is lifted. (v) Open market value per share as at the date reflected at Column (d) of Appendix 8B (vi) Price in foreign currency for columns (e) to (m), except (h) Explanation Complete these 2 columns only if the name of employer granting the stock option is not the same as the company making the declaration. Whether it is ESOP or ESOW plan granted If ESOP is granted without moratorium, to indicate the date the ESOP is exercised. If ESOW plan is granted without moratorium but with vesting imposed, to indicate the date of vesting of ESOW plan. If ESOP/ESOW plan is granted with moratorium, to indicate the date the moratorium is lifted for the ESOP/ESOW plans. Where the shares acquired are listed on the Singapore Exchange, please use the last done price on the listing date of the shares so acquired. Where it is not possible to determine the open market value of the shares or an arm's length price for the shares and the shares are not listed on the Singapore Exchange, please use the net asset value of the shares. You are required to convert the share/stock option price in foreign currency to S$ when completing the Appendix 8B. The price of the foreign share/stock option should be converted using: ESOW Without Selling Restriction and no vesting Without Selling Restriction and with vesting With Selling Restriction Exchange Rate To Use for conversion to S$ Actual exchange rate on the date of grant of shares. Actual exchange rate on the date of vesting of shares Actual exchange rate on the date moratorium is lifted ESOP Without Selling Restriction With Selling Restriction Exchange Rate To Use for conversion to S$ Actual exchange rate on the date the employee exercised the stock option Actual exchange rate on the date moratorium is lifted 190 P a g e

192 Shares Option Procedure: 1. Click on the Shares Option icon. Times Software Pte Ltd Year End Workshop User Manual 191 P a g e

193 2. Stock Option Data window will be prompted. This window shows which staff has a shares option record. A blank screen would define that there are no shares option record for any employees 3. To create amendment record, click on New button. 192 P a g e

194 4. The additional employee record window will be prompted. 5. Select the employee from the button located beside Employee code. 6. Select the relevant tab accordingly. 193 P a g e

195 Section A Employee Equity-based Remuneration (EEBR) Scheme Section B Equity Remuneration Incentive Scheme (ERIS) SMEs 194 P a g e

196 Section C Equity Remuneration Incentive Scheme (ERIS) All Corporations Section D Equity Remuneration Incentive Scheme (ERIS) Start- Ups 195 P a g e

197 7. To auto-populate the RCB number from TIMESPAY8, tick on the Populate RCB No. Otherwise user can input the RCB No. manually. E-Filing for IR8B form only accept up to 15 records. Each page will 3 reflect rows. To input more rows, click on the arrow up button beside the Next Page No box. In the event when user has exceeded the limit of 15 records, system will prompt the following message: 8. Click on Delete button to delete the records. 9. To save the records, click on Save button. 196 P a g e

198 10. After exiting the Stock Option Data Entry window, the Stock Option Data window will reflect the list of employee who has a Benefits In Kind record. Tabs Item Explanation New: To create a shares option record. Edit: To make changes to existing records created. Delete: To remove existing records created. Import: To import shares option record in batch using excel template provided. Download Template: Allow user to download excel template file to perform Import function. Close: This option allows user to exit from Stock Option Data Entry and return to the main screen. 197 P a g e

199 NEW FEATURE!!! This option allows users perform multiple deletion. 1. Tick applicable employee under selected column. 2. To delete click on Delete button. 198 P a g e

200 2.16 Appendix 8B This section allows the IRAS program to print the Appendix 8B report. IMPORTANT NOTE!!! This report will only display a report when there are entries under the Shares Option section. If there are no entries, NO report will be generated. Generating Steps: 1. Click on Appendix 8B icon. 199 P a g e

201 2. Report Printing Dialog box will appear: Times Software Pte Ltd Year End Workshop User Manual Item Print FORM8E Heading Explanation Default report title is Appendix 8B. When option is ticked report will reflect Appendix 8E. Print Revised Copy In the event when revised copy are printed, user can indicate by ticking on this option. The report will be indicated as revised copy as follows: Order By Name Default order is by employee number. When Order By Name is ticked, Appendix 8B form will order by name. 200 P a g e

202 3. The following is a sample of the IR8B upon clicking the Preview button: 201 P a g e

203 2.17 Query Times Software Pte Ltd Year End Workshop User Manual This section allows users to create a query based on particular group of employee(s). This may be necessary when user needs to generate selective records. 1. Options available for query includes: 202 P a g e

204 Query Expert" Query Expert is an advance querying tool for queries which involves more complex conditions No Description 1 The criterias available to choose. You can do a quick search of the criteria by clicking on HEADING. 2 Once you had selected the criteria from (1) it will appear here. 203 P a g e

205 No Description 3 OP stands for Operators. The Operators available are Symbol Description = Equals. Only select employees with the exact criteria. < Lesser than (for numeric values e.g, Basic Pay) <= Equal or lesser than (for numeric values e.g, Basic Pay) > Greater than (for numeric values e.g, Basic Pay) >= Equal or greater than (for numeric values e.g, Basic Pay) <> Not equals. Select everything except of employees meeting selected criteria. Like Wild card. 4 The value of the criteria. 5 REL stands for Relational Operator. REL AND OR Description Used to combine different criteria. All criteria linked with AND operator must be fulfilled Select by either criterion within the query. Select by either this condition or that condition 204 P a g e

206 Query Selection is to open up a specific Query to work with. Adhoc Query allows users to select the employees using field such as employee code, employee name, department, occupation. By ticking at the selected column and click the button Use query. User can also apply exclusion on the selected group or employee. 205 P a g e

207 Quick Search By NRIC allows user to search the affected employees by NRIC/FIN when error listing report when validating the file by searching their NRIC/FIN. 206 P a g e