Generate IR56M Batch (2021 Format)

Generate IR56M Batch (2021 Format) is under Taxation Menu.

This screen allows you to generate the IR56M tax sheets for non-employees in a particular financial year.  If the tax sheets have already been generated, you would be warned before overwriting them. 

Select each Employer to create different IR56M batches if you have multiple employers per database. 

The IR56M tax sheets conformed to the standards of the Hong Kong Inland Revenue Department.  They would contain all the necessary information about your non-employees and the accumulated earnings over the financial year. 

Click the Start IR56M Generation to generate the IR56M records, and make sure the April to March Payroll Batches are all posted. 

The employee selection criteria are

• 1. Hong Kong Income Tax Taxable is checked at Employee Master, Inland Revenue tab.

  2. Non-Employee for IR56M is checked at Employee Master, Inland Revenue tab.

  3. Employee is not terminated or the Terminated Date is within the taxation year

  4. The join date is earlier than the end of the taxation year 

  5. The Employee's Employer is the selected Employer

  6. If Ignore $25,000 Consultant/$200,000 Sub-contractor Income Limit for IR56M in Taxation Module Setup is not turned on, IR56M will be generated only when the accumulated Subcontracting Fees is more than HK$200,000 or the accumulated sum of Commission, Writer's / Contributor's Fees, Artiste' Fees, Copyright / Royalties, Consultancy /Management Fees, Other Income 1, Other Income 2 are more than HK$25,000 

After that, you can use the IR56M Amendment for any adjustment. 

By default, IR56M accumulated per employee number per sheet unless the Accumulate IR56B/M by HKID is checked in Taxation Module Setup. 

Please note that when no payroll batch exists in the taxation year, a zero amount IR56M forms for the eligible employees will be generated.