Why employers report to IRAS
Every year, employers in Singapore must tell IRAS what they paid each employee. This annual reporting ensures employees' tax returns are accurate and helps IRAS calculate the right amount of tax. Miss the deadline or get it wrong, and you could face penalties. Here's what you need to know about employment income reporting and how it affects your business.
The Employer's Obligation
Under Singapore tax law, employers are responsible for reporting the employment income of everyone who worked for them during the calendar year. This isn't optional. Whether you have one employee or one thousand, if you paid someone for work, you need to report it.
The information you provide goes directly to IRAS, who use it to pre-fill employees' individual tax returns. This system reduces errors and makes tax filing easier for everyone, but it means employers must be accurate and timely with their submissions.
What Gets Reported
Employment income reporting covers all forms of compensation paid to employees:
- Salary and wages including basic pay, overtime, and leave pay
- Bonuses whether contractual (like AWS) or discretionary
- Allowances such as transport, housing, or meal allowances
- Commissions and incentive payments
- Director's fees for company directors
- Benefits-in-kind like company cars or accommodation
- Stock options and share awards when exercised
The reporting also includes deductions that reduce taxable income, such as CPF contributions and donations made through payroll.
Who Must Be Reported
You must prepare employment income records for:
- Full-time employees who are Singapore Citizens or Permanent Residents
- Part-time employees regardless of hours worked
- Non-resident employees who worked in Singapore during the year
- Company directors including non-resident directors
- Board members receiving fees
- Pensioners receiving payments from your company
- Former employees who received income during the year
If an employee changed jobs during the year, each employer reports the income for their respective employment period. You're only responsible for what you paid during the time they worked for you.
The Deadline
Employment income must be submitted to IRAS by 1 March each year, covering the previous calendar year. For example, income earned from January to December 2025 must be reported by 1 March 2026.
Penalties for Non-Compliance
IRAS can impose significant penalties for failing to report employment income correctly:
- Fines of up to $5,000 for late or missing submissions
- Additional penalties of up to 200% of the tax undercharged
- Possible prosecution for serious or repeated offences
Beyond financial penalties, non-compliance can damage your company's reputation and create problems for your employees, who rely on accurate reporting for their own tax filings.
How Officaid Helps
Officaid simplifies employment income reporting by pulling data directly from your processed payslips. Instead of manually compiling figures, you generate tax submissions from existing payroll records. The system maps your salary, bonus, allowance, and deduction data to the correct reporting format.
As a One-Stop Payroll vendor approved by IRAS, Officaid can submit employment income records directly to IRAS via API. This eliminates manual data entry in the IRAS portal and provides instant confirmation that your submission was received.
Frequently Asked Questions
Yes. Report all employees who received income from you during the calendar year, regardless of how long they worked. Include the Date of Commencement for new joiners and Date of Cessation for leavers. In Officaid, navigate to Team → Tax and generate submissions for the relevant period.
Each employer reports independently for their employment period. You only report the income you paid. The employee's other employers handle their own submissions. IRAS consolidates all submissions when processing the employee's tax return.
No. Employment income reporting (IR8A) is about what you paid your employees. Corporate tax filing is about your company's business income and expenses. They're separate obligations with different deadlines and requirements.
What's Next
Learn more about the reporting process and how to use Officaid for tax submissions:
- What is the Auto-Inclusion Scheme - Understand electronic submission requirements
- What is the IR8A Form - Break down the form structure
- Introducing the Tax Module - See how Officaid handles tax submissions