Payroll Fundamentals For Business Owners
Payroll Fundamentals For Business Owners
Do You Know What You Don’t Know on “What”, “When”, “Why”, “How” and “How much” to pay your Employees?
Do You really Know what you Don’t Know about the Employment Act and CPF Act?
Everyday we have unhappy employees calling the Ministry of Manpower ( MOM ) hotline to complain against their employers on the following common and simple areas, but not many employers “know the exact rules” :
* Payment of CPF contributions.
* On-time payment of salaries.
* Overtime payment.
* Provision of paid annual and sick leave.
* Adherence to requirements regarding working hours.
This will alert MOM and CPF Board to start an audit in your company’s human resource practices, and many times, these employers would be slapped with hefty fines and / or jail terms for the Directors.
What are the penalties if employers do not comply with the Employment Act?
Employers ( Directors ) may be subject to:
* Up to $5,000 court fine and/or up to 6 months’ imprisonment for 1st conviction
* Up to $30,000 court fine and/or up to 1 year’s imprisonment for subsequent convictions
What are the penalties if employers ( Directors ) do not comply with the CPF Act?
If employers are late in paying or did not pay CPF contributions for their employees, they may be subject to:
* Late payment interest charged at 18% per annum (1.5% per month)
* Composition amount of up to $1,000 per offence
* Up to $5,000 court fine and no less than $1,000 per offence and/or up to 6 months’ imprisonment for 1st conviction
* Up to $10,000 court fine and no less than $2,000 per offence and/or up to 12 months’ imprisonment for subsequent convictions
If employers deducted the employee’s share of CPF contributions from their employee’s wages and failed to submit the CPF contributions to the Board, they may be subject to:
* Up to $10,000 court fine and/or up to 7 years’ imprisonment
Hope the above helps to give you some perspective on the importance of complying with the Employment Act and CPF Act.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
