KeyPay’s guide to the Financial Year End in Singapore
In relation to each Basis Period (1 January - 31 December), employers must lodge their employee’s income with the Inland Revenue Authority of Singapore (IRAS) or issue IR8A forms to their employees by 1 March each year.
With multiple elements involved for different employees, this particular Financial Year End process can be overwhelming to tackle amidst other demanding payroll tasks.
Here at KeyPay, we’re committed to making the execution of payroll compliance effortless for our users. So, regardless of when you started using KeyPay in the Basis Period, we’ve put together 3 key steps to follow that will make the process a walk in the park:
1. Preparing for lodgement - Reviewing data
Whilst KeyPay’s automated features serve to eliminate manual repetitive tasks, it is important to ensure that there is first and foremost, correct data entered into the software before finalising pay runs. Because good data in = good data out.
Areas to review configured data include:
- IRAS settings
- Business details
- Employee details
- Pay Categories
If you have migrated to KeyPay from another system during this basis period, ensure your opening balances are set up correctly.
*KeyPay Tip: Hold off on commencing the pay run finalisation process until you are 100% confident all pays and the adjustments for the financial year have been processed. If you complete your IRAS Lodgement and then have to process adjustment payments, you MUST lodge an amendment to refresh the data and submit any differences.
2. Generate IRAS lodgement report
When you’ve reviewed the data configured and are ready to proceed, simply generate, download and publish annual income details for your employees via KeyPay’s IRAS lodgement report located on the “Reports” page.
3. Other reports to assist
We know that reports are pivotal in identifying next steps in compliance processes. Which is why we’ve put together a list of KeyPay reports relevant to the Financial Year End process that will assist you in giving an indication of the next steps required for each employee in the business.
These reports include:
- IR8A details report: This lists the total earnings for the selected basis period and the data presented should match the IRAS Lodgement report and associated IRAS forms.
- Additional IR8A forms such as appendix 8A, appendix 8B and IR8S forms: If an employee has received benefits in kind, made any gains/profits from employee share plans, or if there were voluntary employer CPF contributions made
- Benefits in Kind report: Gives an indication of which employees should have an Appendix 8A form produced at the end of the basis period.
- Employee Share Plans report: Gives an indication of which employees should have an Appendix 8B form produced at the end of the basis period.
- Excess CPF contributions report: Gives an indication of which employees should have an IR*S form produced at the end of the basis period.
Payroll compliance made effortless
Ready to get started with the Financial Year End process? You can follow the step by step outline in our support article here and say goodbye to compliance stress!
KeyPay is an award winning cloud-based payroll and workforce management platform built for Singapore legislation. In a single, integrated platform, KeyPay automates the flow of data from employees across rosters, timesheets, leave management, pay runs and reporting.
KeyPay is available through our trusted partner network in Singapore. Interested in becoming a KeyPay partner? Get in touch.