Taxation Module Setup

Taxation Module Setup is under System Manager ⇒ HRPro Setup.

General tab

When Enable Taxation Module is turned off, Taxation Processing on the menu is not available.

General

When the Accumulate IR56 Forms by HKID is turned on, IR56B, IR56F, IR56G, and IR56M will accumulate the payrolls of the same HKID to the same sheet regardless of the employee number. Which is applied to one employee with multiple employee numbers because of multiple employment contracts.  Moreover, the IR56B also includes those terminated contracts unless IR56F/G is already printed for those HKID numbers or the termination date is sooner than the taxation year start date. 

When Include Area to Address is turned on, the address line of all IR documents will append the Area (in Employee Master, Personal Info Tab) to the Address, e.g. If the Area is Kowloon. KOWLOON will be added at the end of the address line of all IR documents. This option is good to turn off if your employee address already contains the area or the address is in Chinese. 

If the Allows creating zero amount IR forms even if the payroll amount is zero is turned on, HRPro will create zero amount IR Form (IR56B, IR56F, IR56M) for all eligible employees no matter whether the employee has a payroll amount or not. It is good for a company that wishes to manually create IR Forms without depending on the payroll records.

IR56B - Employer's Return of Remuneration and Pensions

When the Generate MPF Mandatory Contributions and show it on IR56B Remarks is turned on, an IR56B remarks will be automatically created during the IR56B Generation that accumulated the Employee Mandatory Contributions during the taxation year.

Tuning on Enable IR56B 2018 Format (Old Format) is only good for companies that 

• already created old IR56B batches (for record-keeping), or

• wish to continue to submit to IRD using the old format if approved by IRD (required  AllowGenerateIR56B2018 is true in HRPro.config), or

• still using HRPro Desktop Client 

IR56E - Employer's Notification by an Employer of an Employee who commences to be employed 

The Tentative number of working days per month and a Tentative number of working hours per day is for the calculation of item 11a Monthly rate of fixed income in IR56E for the daily/hourly rate employees if applicable.

IR56F - Notification by an employee who is about to cease to be employed 

If the option [All Eligible] employees including employees that the termination date is in the future when generating IR56F Batch is turned on, and [All Eligible] is selected when generating the IR56F batch, the batch will include the employees the termination date is in the future. Otherwise, the batch will include the employees whose termination date is on or before the generating date. 

Tuning on Enable IR56F 2018 Format (Old Format) is only good for companies that 

• already created old IR56F records (for record-keeping), or

• wish to continue to submit to IRD using the old format if approved by IRD (required  AllowCreateIR56F2018 is true in HRPro.config)

• still using HRPro Desktop Client 

IR56M - Notification of Remuneration Paid to Persons other than Employees

If Ignore $25,000 Consultant/$200,000 Sub-contractor Income Limit for IR56M is turned off, IR56M will not be generated if

• Subcontracting Fees are not zero and are not more than $200,000 per annum and consultant incomes (Commission, Writer's / Contributor's Fees, Artist's Fees, Copyright / Royalties, Consultancy / Management Fees) are zero. Or

• Subcontracting Fees are zero and the sum of consultant incomes (Commission, Writer's / Contributor's Fees, Artist's Fees, Copyright / Royalties, Consultancy / Management Fees) are not more than $25,000 per annum

Turn it off can fulfill the requirement that you must report only if the amount of payment to

• a sub-contractor exceeds $200,000 per annum; or

• a consultant, agent, broker, freelance artist, entertainer, sportsman or writer, etc. exceeds $25,000 per annum

Employer Chop 

Employer Chop is to define the Employer's official chop for various IR56 forms. 

Employer tab

Click the Add button to define an additional Employer Name, Tax File No., Name, Designation and Address if you have multiple employers (Tax File No.) per database. 

Click the Edit button to edit the Tax File No., Name, Designation information for IR forms declaration as well as the Pay Slip Header of the employer.  

For the [Default] Employer, 

• Employer Name and Address is defined in Company Setup, General tab.

• Pay Slip Header is defined in Payroll Module Setup, Pay Slip tab.

• Employer Chop is defined in the Taxation Module Setup.

To define the employee's employer, go to Employee Master, IR tab.