Introduction
The recent case in which the Central Provident Fund (CPF) Board applied to recover nearly $417,000 in alleged CPF arrears from Jurong Country Club highlights the highly unsatisfactory state of the current legal distinction between employees and independent contractors Straits Times, 4 January 2019).
CPF Board takes a serious view on employers who do not fulfil their CPF obligations to their employees. More so, employers’ need to pay CPF contributions correctly and promptly for their employees. Therefore, does HR practitioners know the differences between ordinary wage, additional wages and total wages? What is the ceiling for ordinary and additional wages? Should overtime, back payment, transport allowance, meal reimbursement be paid by ordinary or additional wages? What are the common mistakes made by Payroll personnel when contributing CPF?
Upon detection of wrong payment or non-payment of CPF contributions, actions will be taken to recover the arrears or CPF contributions owed to employees. Interest on late payment and a composition amount may be imposed on the defaulting employer.
From the above, it is important that employers fulfil their CPF obligations to their employees. It is equally important that payroll administrators be able to process the payroll accurately and timely, and yet be able to understand the differences between the contract of service vs contract for service, ordinary vs additional wage, the rationale and basis of the legislation as to when, why and who should be paid.
The CPF Board and the Ministry of Manpower have also announced that they will continue to step up efforts to bring about greater compliance with the CPF Act and Employment Act to better protect employees.
At the end of this workshop, delegates can be assured that they will be more competent in their understanding of the CPF Act and its practical application.
Learning Objectives
- Understand the background and purpose of the CPF Act.
- Know the different types of CPF account.
- Know the CPF contribution rates and what to be credited to the various accounts.
- Explain under what situation or circumstances whereby CPF would be payable.
- Contrast contract of service and contract for service.
- Know the differences and types of wages.
- Know which are the employee benefits that are taxable and non-taxable.
- Know the limits on CPF contributions.
- Know the various CPF schemes such as Special Employment Credit, Temporary Employment Credit, Wage Credit Scheme and Supplementary Retirement Scheme so that employers can reap the employee benefits, especially for low wage and older workers.
- Know the different modes of e-payment for CPF.
- Know the contribution for Skills Development Levy.
- Know the common errors in CPF computation by HR practitioners.
- Know the offences and penalties for infringement of the CPF Act.
Course Outline
A competent HR practitioner or Payroll Administrator must have the skills and knowledge in the following:
1. Understand the background and purpose of the CPF Act
- Overview of the CPF Act
- CPF Act versus CPF website information
2. Know the difference types of CPF and its purpose
- Ordinary account
- Special account
- Medisave account
3. Know the CPF contribution rates and what to be credited to the account
- CPF for Singaporeans
- CPF for Singapore Permanent Residence
- e-CPF Calculator and CPF rate booklets
4. Explain under what situation whereby CPF would be payable
- Multiple employers
- Students
- Part-timers and casual labourers
- Company directors
- Employees working overseas
- A foreigner on work passes
5. Contrast contract of service and contract for services
- Definition of contract of service and contract for service under common law
- Factors in determining the contract for service
6. Know the definition and type of wages
- Ordinary wages
- Additional wages
- Total wages
- Differences between allowances and reimbursement
7. List out the employee benefits that are taxable and non-taxable
- Accommodation benefit
- Car-related benefit
- Air passage
- Insurance premium
8. Know the limits on CPF contribution
- Ordinary wage ceilings
- Additional wage ceilings
- Voluntary CPF contributions
9. Assess the various CPF schemes in particularly for low wage and older employees
- Special Employment Credit
- Temporary Employment Credit
- Wage Credit Scheme
- Supplementary Retirement Scheme
- Workfare Income Supplement
- Workfare Training Support Scheme
10. Modes of e-payment by employers
- CPF e-submission by Web
- Other modes of e-submission
11. Know the contribution for Skills Development Levy and other CPF contributions
- Chinese Development Association Council (CDAC)
- Singapore Indian Development Association (SINDA)
- Mosque Building and Mendaki Fund (MBMF)
- Eurasian Community Fund (ECF)
- Foreign workers levy (FWL)
- Share programme
12. Know the common errors in CPF computation by HR practitionersÂ
- Underpayment
- Overpayment
- Backpayment
- Non-payment / Late payment
- Submitting the wrong date/month
13. Know the offences and penalties for infringement of the CPF Act
- Enforcement by CPF Board Inspectors
- Powers of CPF Board Inspectors
- Minimum and maximum fines; and jail
- Salient points on amendments to CPF Act on November 2013
14. Review CPF case law
- PN electronic Pte Ltd v Public Prosecutor
- Ponggol Marina Pte Ltd v CPF Board (Public Prosecutor)
Methodologies
Lecture and case study.
Who Should Attend
Human Resource Practitioners and Payroll Administrators.
Workshop Registration
Please visit this page to register.
