A business operator is also an employer of manpower and therefore bears many legal responsibilities to employees such as:

Age: The legal age to work in Singapore is 17 years and older. Restrictions as to what kind of work children and young persons aged 13 to 16 years can perform apply. Retirement age is 62 years;

Minimum wage: No minimum wage for employees in Singapore. Wages are determined by the agreed terms;

Normal hours of work: For work week of up to 5 days, working time must not exceed 9 hours per day or 44 hours a week. For work week of more than 5 days a week, working time may be up to 8 hours a day or 44 hours a week. Any work time above the specified work hours must be paid as overtime (at least 1.5 times the hourly basic rate);

Annual leave eligibility: Paid annual leave is entitled after working for at least 3 months;

Sick leave eligibility: Paid outpatient sick leave and paid hospitalisation leave are entitled after working for at least 3 months;

Public holidays: 11 paid gazetted public holidays a year are entitled. An extra day’s salary or a day off in lieu is fair compensation for working on a public holiday;

and to the Inland Revenue Authority of Singapore (IRAS):

Some basic responsibilities as an employer where tax reporting is concerned include:

    • Reporting Employee Earnings (IR8A, Appendix 8A, Appendix 8B, IR8S)
      Employers are required by law [S68(2) of the Income Tax Act] to prepare Form IR8A and Appendix 8A, Appendix 8B or Form IR8S (where applicable) for employees who are employed in Singapore by 1 Mar each year. Employers do not need to submit the hardcopy forms to IRAS.

Under the Auto-Inclusion Scheme (AIS) for Employment Income, employers submit the employment income information of their employees to IRAS electronically. The submitted information will be automatically included in the employees’ income tax assessment.

Singapore Tax Filing

Employees to be Included in AIS Submission:

  • Full-time resident employees
  • Part-time resident employees
  • Non-resident employees including those who are based overseas and are required to render service in Singapore during the year (exclude details of employment income where clearance has been filed)
  • Company directors (including non-resident directors)
  • Board members receiving Board/ Committee Member Fees
  • Pensioners; and Employees who have left the organisations but were in receipt of income in the reporting year (e.g. stock option gains)

(Source: IRAS)

Employees may use the AIS Organisation Search to check if their employer:

  1. Is in the Auto-Inclusion Scheme (AIS); and
  2. has submitted for Year of Assessment (YA) 2020

Employees must still file their tax return, even if their employer is in AIS, if they:

  1. Have received a notification (e.g. SingPass letter, IRAS PIN mailer, tax form of SMS) from IRAS informing them to file their tax return; or
  2. Have other income to declare or want to indicate their claims for personal reliefs, where applicable

A Singapore Accounting Company can assist business owners comply with Singapore Tax Filing for their employees, and also with annual compliance submissions to ACRA, annual tax filing to IRAS, GST registration, employment laws and many other regulatory procedures.