Finally: A modern solution for an age-old institution
ONCE UPON A TIME
Submitting IR8A forms used to be real hard work. Every year, employers had to go through the laborious task of paper filing IR8A manually by filling in every single detail on a physical IR8A form. This meant they had to be well-versed with all the items in IR8A, including the different terms and stipulations. Not to mention having to calculate Year-to-Date (YTD) salary/pay items without a software, and then double-, triple-checking with the Inland Revenue Authority of Singapore (IRAS) to make sure no errors had been committed.
IR8A form from IRAS
This whole process would take hours to days depending on how many employees one had and how well organised (or not) employee and payroll data was kept without an HR or payroll platform.
AUTO-INCLUSION SCHEME (AIS)
Recognising this inconvenience, IRAS came up with the AIS in 2009. AIS allows employees’ employment income information to be automatically included in their income tax assessment. For companies with nine or more employees, AIS is compulsory, and IRAS would have already notified employers to file through them. For companies with fewer employees, AIS is optional, and they can still apply for it at myTaxPortal by following the steps over here.
While IR8A submission is much easier using a HR/payroll platform with the AIS file format, the submission process is still not as automated. The whole process—as outlined below—is still not as efficient as it could be:
- Check through employees’ profiles and YTD figures in IR8A that your HR/payroll platform has compiled for you.
- Once done, download the AIS file format, which is a .txt file.
- Download a Java Application over here and upload the .txt file to validate it. Once validation is successful, a .iras file is created and will be stored in your local drive.
File validation on IRAS website
- Then, head to myTaxPortal to submit this .iras file.
IR8A AIS submission Java App and myTaxPortal
FAST-FORWARD TO 2018: 1-CLICK IR8A SUBMISSION
Since IRAS announced last year that they were offering their API to third party developers, we’ve worked very hard to build a direct integration to IRAS from our Payroll app. This was finally launched in January 2018. With the direct integration, submitting IR8A takes just one click of a button (making sure of course that your IR8A forms have been checked thoroughly). Click on the slideshare below to see how it works.
And so that every single business out there gets access to 1-click IR8A submission, Talenox is providing this for free on our Talenox FREE plan!
MORE HR AUTOMATION COMING YOUR WAY
We believe that with direct integration with IRAS now possible, and with the push of Smart Nation Singapore, CPF submission and salaries disbursements should be made possible with a click of a button too. We’re currently working hard to push CPF, MAS, and banks towards such automation. We look forward to further automating all HR administrative processes, and will invest our resources into making Talenox an even more automated HR SaaS for the countries we serve.
Have an awesome tax submission period!