Documents to prepare for Auto-Inclusion Scheme (AIS)
New to Auto-Inclusion Scheme (AIS) and not sure how to get started? We’ve invited Charles Chen, Managing Director from CAP Advisory Partners, to share a few tips on how to prepare for the Auto-Inclusion Scheme (AIS) as an employer so that you don’t have to rush during the AIS submission process when the deadline is approaching!
What is Auto-Inclusion Scheme (AIS)?
The Auto-Inclusion Scheme (AIS) enables you to submit your employee’s income records to IRAS electronically, instead of a hard copy done previously. It is compulsory for you to join the AIS if you have 5 or more employees in the company.
Is my company registered for AIS?
First up, please note that AIS registration is not automatic. Your company needs to register for AIS for the Year of Assessment in the previous year.
For example, registration for YA2022 will open from 1st February 2021 to 31st December 2021. If your company is not registered for AIS, you’ll need to file your IR8A through your employees and have them manually submit this with IRAS.
For those who are registered for AIS, there are some things that you’ll need to prepare for submission. Here’s a list of things to get ready to avoid the last minute rush.
First, you’ll need your yearly payroll report with the following breakdown:
Gross Pay: The pay that is stated in the employment contract and is before any form of deduction or allowance that is due to the employee. It comprises basic wages, overtime pay, commissions, tips, other allowances and one-twelfth of annual bonuses.
You’ll also need other documentation on employee benefits. Some common employe benefits that we see for SMEs would be:
The provision of motor vehicle: Some companies may be providing motor vehicles for their sales staff or their company directors. Please note that this is a form of benefit to employees and should be reported in the AIS.
Passage of Leave: For those who hire foreign workers, we may probably sponsor them to either fly to Singapore or fly out of Singapore. This is called passage of leave and is also a form of benefit in kind.
Accommodation: If your company provides accommodation to your employees, you have to report it as a benefit in kind when submitting the AIS.
Loans to company directors: It may come as a surprise but if you are a company director and have been taking loans from the company, this is deemed as a benefit in kind. Please take note to submit this as a taxable income in your own AIS when you submit to IRAS.
Tax paid by employers: If your company has been paying taxes on behalf of your employees, this also classifies as one of the benefits in kind provided to employees
That’s it. Wishing you all the best for AIS submission!
How can Payboy’s HR software help with AIS Submission for employers?
Even when you are under AIS, you’ll still need to prepare the employment income information that complies with IRAS’ format and submit it electronically to IRAS by 1 March every year.
Employers are strongly encouraged to use payroll software integrated with the AIS Application Programming Interface (API) Service to facilitate employers’ preparation and submission of the employment income details. In fact, Payboy is proud to be one of the supporting payroll software vendors for AIS listed on IRAS, which means that our software is able to support AIS submission by:
Integrate directly with IRAS' server to submit employment income information through Application Programming Interface (API), and/ or
Generate TXT/ XML files in the required format and can be submitted using the Validation and Submission Application.
Benefits of using Payboy’s payroll module for AIS submission:
100% Compliant and 100% peace of mind
Prepare your e-submission of CPF contributions with a few simple clicks on Payboy!
Covers any work arrangement
Working with full timers, part timers, freelancers and contract staff? We’ll take care of the unique payroll requirements for each working arrangement.
Transparent, Accurate and Simple
Full visibility on how payroll is calculated automatically based on shifts, attendance, leave and submitted claims, within an intuitive experience.
Fully integrated with your preferred platforms
We’ll fit into your ecosystem seamlessly and keep your finance team happy. Check out our full list of integrations.
Are there any SME grants available if I’m interested in using Payboy HR software?
Yes Payboy is eligible under the PSG Grant! You can find our answers to your questions regarding PSG grant here.
Find out how you can do it all with Payboy
Reach out to us if you are keen for a free demo on how we can help you save hours and give you some peace of mind on payroll and other HR matters so that you can focus on your business and people.