The Central Provident Fund (CPF) Act And Its Practical Applications (with emphasis on compensation and Payroll Management)

Introduction : The Central Provident Fund (CPF) Act And Its Practical Applications 

It is legally binding, for employers to fulfill their CPF obligations to their employees. It is also equally as important for payroll administrators to be able to process payroll in an accurate and timely manner.  Therefore, HR practitioners and Payroll Administrators must have a very clear understanding of the rationale and basis of the legislation as to when, why and who should be paid etc. This is notwithstanding that HR practitioners responsible for Compensation and Benefits or Training and Development would also want to reap maximum benefits from the available governmental assistance schemes such as the Workfare Income Supplement Scheme, Workfare Training Support Scheme and Supplementary Retirement Scheme etc.  Also, where Compensation and  Benefits management is concerned, considerations have to be made on whether a payment to an employee is an allowance or a reimbursement,  whether it attracts CPF contributions and whether it is taxable or not.

Other than the above, this workshop serves to update HR practitioners on the recent amendments to the CPF Act which took effect on 11 November 2013. The amended legislation has increased the powers of the CPF Board inspectors and raised the penalties for non-compliances in particular to non-payment and late payment. 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 both the CPF and Employment Acts to better protect employees.

At the end of this workshop, participants will be more competent in their understanding of the CPF Act and its practical applications.

Learning Objectives:

  1. Understand the background and purpose of the CPF Act.
  2. Know who are the persons in respect of whom CPF is payable.
  3. Know who are the persons who are responsible for paying CPF.
  4. Know the different types of CPF accounts.
  5. Know the prevailing CPF contribution rates and what to credit to the different accounts.
  6. Explain whether CPF be payable when employees work overseas, multiple employers, etc.
  7. Contrast Contract of Service against Contract for Service.
  8. Know the differences in the types of wages.
  9. Know which employee benefits are taxable and which are non-taxable.
  10. Know the limits on CPF contributions.
  11. Assess whether the Supplementary Retirement Scheme can be considered as an employee benefit for older workers.
  12. Know how the Workfare Income Supplement Scheme can assist low wage workers.
  13. Know the different modes of CPF e-payments.
  14. Know the other mandatory/non-mandatory contributions such as Skills Development Levy etc.
  15. Know the common errors in CPF computations.
  16. Know the offences and penalties for infringement of the CPF Act.

Workshop Outline:

 A competent HR practitioner or Payroll Administrator must have the knowledge and skills 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 who are the persons in respect of whom CPF is payable

  • Definition of employee.
  • Definition of employed
  • CPF ( Exemptions- Miscellaneous (Consolidation) order
  • Definition of domestic employee and under what circumstances CPF is payable.

3.       Know the different types of CPF accounts and their purposes

  • Ordinary account
  • Special account
  • Medisave account

4.       Know the prevailing CPF contribution rates and what to credit to the different accounts

  • CPF for Singaporeans
  • CPF for Singapore Permanent Residents
  • e-CPF Calculator and CPF rate booklets

5.       Explain under what circumstances would CPF be payable

  • Multiple employers
  • Students
  • Part-timers and casual labourers
  • Company directors
  • Employees working overseas
  • Foreigner on work passes
  • Commission derived from third party in the course of employment

6.       Contrast Contract of Service against Contract for Services

  • Definition of Contract of Service and Contract for Service under common law
  • Factors to determine Contract for Service

7.         Know the definitions and types of wages

  • Ordinary wages
  • Additional wages
  • Total wages
  • Differences between allowance and reimbursement

8.       Know which employee benefits are taxable and which are non-taxable

  • Accommodation benefit
  • Car-related benefit
  • Air passage
  • Insurance premium
  • Others

9.       Know the limits on CPF contributions

  • Ordinary wage ceilings
  • Additional wage ceilings
  • Voluntary CPF contributions

 10.     Assess whether the Supplementary Retirement Scheme can be considered as an employee benefit for older workers

  • Eligibility requirements for SRS
  • Tax benefits

11.     Know how the Workfare Income Supplement Scheme can assist low wage workers

  • Eligibility requirements for WIS
  • Workfare Training Support Scheme

12.     Know the different modes of CPF e-payments

  • CPF web e-submission
  • Other modes of e-submission

13.     Know the other mandatory/non-mandatory contributions such as Skills Development Levy etc

  • 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

14.     Know the common errors in CPF computations

  • Underpayment
  • Overpayment
  • Backpayment
  • Non-payment / Late payment
  • Submitting wrong date/month

15.     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 11 November 2013

16.     Review CPF case laws

  • PN Electronic Pte Ltd v Public Prosecutor
  • Ponggol Marina Pte Ltd v CPF Board ( Public Prosecutor )

Methodologies

Lecture and case studies.

Who should attend ? 

Human Resource Practitioners and Payroll Administrators.

Workshop Registration - The Central Provident Fund Act And Its Practical Applications 

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