Introduction
Running payroll in Singapore involves more than just paying salaries. As an employer, you're legally required to meet several obligations each month and year. Missing any one of them can result in penalties from MOM or IRAS. This checklist keeps you on track.
Monthly Payroll Obligations
- Calculate gross salary including overtime, allowances, and deductions
- Deduct employee CPF contributions (varies by age group)
- Contribute employer CPF (varies by age group)
- Pay Skills Development Levy (SDL) — 0.25% of gross wages, min $2/employee
- Issue itemised payslips (mandatory under the Employment Act)
- Submit CPF contributions by the 14th of the following month
Annual Payroll Obligations
- File IR8A (employee earnings) with IRAS by 1 March each year
- Submit IR8S if excess CPF contributions were made
- File Appendix 8A for benefits-in-kind
- File Appendix 8B for gains from share options
Common Payroll Mistakes to Avoid
- Late CPF submissions (penalty: up to 10% per annum)
- Incorrect CPF rates for employees over 55
- Forgetting to issue payslips (required by law)
- Not reporting foreign employees correctly under the IR21 process
Need Help with Payroll?
Managing payroll compliance takes time and expertise. Cloud Account offers payroll outsourcing services for Singapore SMEs — so you can focus on your business while we handle the compliance.