End-to-end monthly payroll workflow for Singapore employers, covering CPF contribution computation and GIRO payment, Skills Development Levy, Foreign Worker Levy, and year-end IR8A/IR8S auto-inclusion submission to IRAS by 1 March.
Determine each employee's CPF liability status. Singapore Citizens and Permanent Residents (PR) working in Singapore attract mandatory CPF; foreigners on Employment Pass, S Pass, or Work Permit do not contribute to CPF but may attract Foreign Worker Levy. PR employees in their first two years have phased-in (graduated) CPF rates that differ from full SC/full PR rates.
Compute gross pay for the month and classify each component as Ordinary Wages (OW) or Additional Wages (AW). CPF is applied separately to OW (capped at S$6,800/month Ordinary Wage Ceiling) and AW (subject to annual Additional Wage Ceiling of S$102,000 less total OW already subject to CPF). Bonuses, AWS (Annual Wage Supplement), and commissions are AW; regular monthly salary is OW.
Apply the correct CPF contribution rates (employer + employee) from the CPF contribution rate tables for the relevant age band and PR year. Compute the Skills Development Levy (SDL) at 0.25% of gross wages (minimum S$2.00, maximum S$11.25 per employee per month) payable to SkillsFuture Singapore. Confirm total CPF does not breach the Annual Limit of S$37,740 for any employee.
Submit CPF contributions via CPF e-Submit@web or CPF e-Submit@AXS by the 14th of the following month (or last working day before, if the 14th falls on a weekend or public holiday). SDL is collected together with CPF. Foreign Worker Levy (FWL) is payable separately to MOM by the 15th of the following month. Late CPF payment attracts interest at 1.5% per month (18% p.a.).
By 1 March each year, employers with 6 or more employees (and all employers participating in the Auto-Inclusion Scheme) must submit IR8A (employee earnings record), Appendix 8A (benefits-in-kind), Appendix 8B (gains from share options), and IR8S (excess/voluntary CPF contributions) electronically to IRAS via the Auto-Inclusion Scheme (AIS) on myTax Portal. Employees covered by AIS do not need to manually enter employment income in their Form B1 / Form B.
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