Taxation Module Setup

Taxation Module Setup is under System Manager ⇒ HRPro Setup.

Taxation Module Setup allows users to set up necessary company information to generate and export tax files, such as IR56B forms, and other tax-related documents like IR56E/F/G/M.

General tab

• Enable Taxation Module: Disabling this option removes Taxation Processing from the menu, making it inaccessible.

General

• When regenerating the IR56B/F/M batch, prevent overwriting amended records:  When enabled, it ensures that previously modified data remains intact and is not overwritten by the system-generated batch updates. 

• Accumulate IR56 Forms by HKID: When enabled, IR56B, IR56F, and IR56G will accumulate the payrolls of the same HKID to the same sheet, regardless of the employee number. This 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. 

• Include Area to Address: When enabled, 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. 

IR56B - Employer's Return of Remuneration and Pensions

• Accumulate MPF Mandatory Contributions: When enabled, IR56B remarks will be automatically generated during the IR56B creation process, summarizing the Employee's Mandatory Contributions for the taxation year.

• Generates IR56B forms with zero amounts, even if payroll is zero: When enabled, HRPro will generate IR56B forms with zero amounts for all eligible employees, regardless of whether they have payroll records. This feature is ideal for companies that prefer to manually create IR56B Forms without relying on payroll data.

• Enable IR56B 2018 Format (Old Format): This is only good for companies that 

  • Have existing old IR56B records for record-keeping purposes.

  • Intend to continue submitting to the IRD using the old format with IRD's approval (requires AllowCreateIR56B2018 set to true in HRPro.config).  

  • Are still using the HRPro Desktop Client.  

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

• Tentative Number of Working Days per Month: Used to calculate item 11a, the Monthly Rate of Fixed Income, in IR56E for daily or hourly rate employees, if applicable.

• Tentative Number of Working Hours per Day: Also used for item 11a, this helps determine the Monthly Rate of Fixed Income in IR56E for daily or hourly rate employees, if applicable.

• Display the Badge Counter for IR56E: Enabling this feature will display the count of IR56E forms awaiting printing as a badge on the menu.

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

• [All Eligible] employees, including employees whose termination date is in the future when generating IR56F Batch: When enabled, selecting [All Eligible] while generating the IR56F batch will include employees whose termination date falls in the future. If disabled, the batch will only include employees whose termination date is on or before the generation date. By enabling the option, companies can include employees with future termination dates in their tax-related processing. This is especially useful for organizations that plan ahead or need to prepare forms early for employees whose departure has already been scheduled but hasn't occurred yet.

• Generates IR56F forms with zero amounts, even if payroll is zero: When enabled, HRPro will generate IR56F forms with zero amounts for all eligible employees, regardless of whether they have payroll records. This feature is ideal for companies that prefer to manually create IR56F Forms without relying on payroll data.

• Enable IR56F 2018 Format (Old Format): This option is suitable for companies that:

• Have existing old IR56F records for record-keeping purposes.

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

•  Intend to continue submitting to the IRD using the old format with IRD's approval (requires AllowCreateIR56F2018 set to true in HRPro.config).  

• Are still using the HRPro Desktop Client.  

IR56M - Notification of Remuneration Paid to Persons other than Employees

• Enable IR56M: Disabling this feature removes the IR56M Processing option from the menu, making it unavailable for use.

• Ignore $25,000 Consultant/$200,000 Sub-contractor Income Limit for IR56M: When this option is turned off, IR56M will not be generated under the following conditions:  

  1. Subcontracting Fees do not exceed $200,000 per annum.

  2. Consultant incomes (e.g., Commission, Writer's/Contributor's Fees, Artist's Fees, Copyright/Royalties, Consultancy/Management Fees) do not exceed $25,000 per annum.  

• Generates IR56M forms with zero amounts, even if payroll is zero: When enabled, HRPro will generate IR56M forms with zero amounts for all eligible employees, regardless of whether they have payroll records. This feature is ideal for companies that prefer to manually create IR56M Forms without relying on payroll data.

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.