Taxation Module Setup

Taxation Module Setup is under System ManagerHRPro Setup.

General tab

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

General

When the Accumulate IR56B/F/M by HKID is turned on, IR56B/M will accumulate the payrolls of the same HKID to the same sheet regardless of the employee number. Which is applied for one employee with multiple employee number because of multiple employment contract.

When the Accumulate IR56B/F/M by HKID is turned on, IR56B also included those terminated contracts unless IR56F/G is already printed for those HKID number 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 turned off if your employee address already contains the area or the address is in Chinese.

If the Allow create zero amount IR form even if payroll amount is zero is turned on, HRPro will create zero amount IR Form (IR56B, IR56F, IR56M) for all eligible employees no matter the employee have payroll amount or not. It is good for company wish 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 to 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 company that

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

  • wish to continue submit to IRD using the old format if applicable

  • using HRPro Desktop Client only

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

The Tentative number of working days per month and Tentative number of working hours per day are 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

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

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

  • wish to continue submit to IRD using the old format if applicable

  • using HRPro Desktop Client only

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 is not zero and is 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 is zero and 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 fulfil 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 employer (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,

To define the Employer of the employee, go to Employee Master, IR tab.