End of Financial Year HR and Payroll Checklist 2024

When is the financial year end in Singapore?

As defined by the Accounting and Corporate Regulatory Authority of Singapore (ACRA), a company’s financial year end (FYE) represents the final day of its accounting period, and can be 12 months or over 52 weeks. 

In Singapore, the financial year end typically falls on either December 31st or March 31st. Companies can choose their financial year end date, but it is common for many to align it with the calendar year end (December 31st) or the end of the fiscal year (March 31st). It’s important to note that companies must maintain a consistent financial year-end once it has been chosen.

What documents do employers need for income tax reporting?

Employers will need to have access to up-to-date documentation from the entire financial year. That includes employee info, bank statements, business expenses, payslips, pay run submissions and more. 

Examples of key documents you’ll need are — Form IR8A; Appendix 8A, 8B, or IR8S; itemised payslips, CPF statements, benefits-in-kind statements and more. 

This is where effective data recording comes in handy. If you’re looking to save time on administrative tasks, having HR and payroll software that automatically collects information safely on the cloud means getting all the data you need takes just a few clicks.

How can Singaporean employers prepare for the financial year end?

Apart from following our financial year end checklist, businesses should ensure they work closely with their accounting and finance teams, possibly engaging with professional advisors or auditors to ensure a smooth financial year-end process and compliance with all relevant regulations.

What forms need to be filled at the end of the financial year?

At the end of the financial year in Singapore, employers are required to fill out and submit various forms to comply with regulatory and tax obligations. The specific forms to be filled out may vary, based on factors such as the type of business, the nature of income, and the employment structure. Here are some key forms that may need to be filled:

Form C or Form C-S (Income Tax Return):

Companies are required to file either Form C, Form C-S, or Form C-S Lite, depending on their annual revenue. Form C-S is for Singapore-incorporated companies with an annual revenue of $5 million or below, while Form C-S Lite is for Singapore-incorporated companies with an annual revenue of $200,000 or below. Companies which do not qualify to file Form C-S or Form C-S (Lite) must file Form C.

Form IR8A (Employee’s Income Tax Return):

This is the main document for reporting employees’ earnings and employment income. Employers must submit Form IR8A to the Inland Revenue Authority of Singapore (IRAS) by March 1st of each year. It outlines details such as gross income, bonuses, benefits-in-kind, and tax deductions.

Employers under the IRAS Auto-Inclusion Scheme (AIS) no longer have to submit hardcopy IR8A forms anymore — everything can be submitted electronically. Using payroll software that’s integratednwith the AIS Application Programming Interface (API) enables you to prepare your e-submission and submit documents to IRAS much more seamlessly and efficiently. 

Appendix 8A, 8B, or IR8S (Supplementary Forms for IR8A):

These appendices to Form IR8A are used to declare additional details such as bonuses, stock options, or other allowances that may not be covered in the main form.

Appendix 8A must be completed for employees who were provided with benefits-in-kind, Appendix 8B must be completed for employees who derived gains or profits from Employee Stock Option (ESOP) Plans or other forms of Employee Share Ownership (ESOW) Plans, and Form IR8S must be completed if you have made excess CPF contributions on your employees’ wages and/or have claimed or will claim refund on excess CPF contributions.

Form IR21 (Tax Clearance for Foreign Employees Leaving Singapore):

If you have any foreign employees leaving Singapore, you are required to submit Form IR21 to IRAS within one month before the employee’s departure. This form reports the last payment made to the employee and helps determine the tax clearance amount.

Form GST F5 (Goods and Services Tax Return):

Businesses registered for Goods and Services Tax (GST) need to file GST returns, typically on a quarterly basis. The annual return is filed using Form GST F5.

ACRA annual return:

Companies incorporated in Singapore need to file an annual return with the Accounting and Corporate Regulatory Authority (ACRA), to ensure that the company’s information on ACRA’s register is up to date.  Listed companies have to do so within 5 months of their financial year end while non-listed companies have to do so within 7 months of their financial year end.

Form ECI (Estimated Chargeable Income):

Companies are required to submit a Form ECI within three months from the end of their financial year to provide an estimate of their chargeable income.

Check out our key dates for small businesses guide for more information.

What are some common payroll deductions for Singaporean businesses?

The end of the financial year is often a time when you’ll review the deductions you’ve made through payroll – both for reporting and to ensure you’ve made the correct deductions throughout 2023.

There are several payroll deductions that Singaporean businesses will commonly make. These include:

• Central Provident Fund (CPF) contributions;
• Skills Development Levy (SDL);
• Self-Help Groups (SHG) contributions;
• Foreign Worker Levy (FWL); and more. 

What other admin tasks should be done at the financial year end?

For HR and payroll professionals, the financial year end can be a great time to take stock. Check that your employee data is accurate across the business, whether that’s visa statuses or employment agreements. 

You’ll also need to complete your last payday filing of the year, as well as reconcile your payroll data with what has been reported to IRAS, to ensure that it all balances. That includes reviewing the respective statutory contributions for all employees.

From a HR perspective, use this time to check in on company and individual goals for the next year. Whether that’s refreshing your company values or improving your performance review system, make sure your team is well supported to take the company through a successful year ahead.

How can Singaporean employers best prepare for the next financial year?

Preparing for a financial year doesn’t have to be hard. Here’s a few tips to help you feel prepared for the next financial year.

Record-keeping is crucial

How are you currently storing your data? If the EOFY comes with a whole lot of dread as you realise you’ll be searching through endless stacks of paper or digital files, it’s probably time to overhaul your record-keeping process. Consider how you can make safe and effective data storage part of the routine.

This is something HR and payroll software can help with. Every data entry is stored securely along the way and can be accessed in a variety of forms, making downloading up-to-date reports at the end of the year a breeze. Goodbye double data handling!

Stay on top of deadlines

There are plenty of dates to be aware of when it comes to running a business, from public holidays to tax submission dates. Businesses have to file their Estimated Chargeable Income (ECI) within 3 months from the end of their financial year, unless the company qualifies for the ECI filing waiver; or the company is specifically not required to file ECI.

This isn’t just crucial as a legal compliance issue, but ensures your cash flow for the next year is correct and going to the right places.

See a new tax year as an opportunity

For many people, getting through the end of a tax year can seem like a whole lot of admin. However, just as spring cleaning leads to a sparkling home, think of a new tax year as an opportunity to do things better.

Here’s your chance to try new things, refresh how you organise employment and payroll, and see how your business can flourish. Plus, you’ve got a nice clear deadline to work towards. What can you do before the next financial year to make employment easier?

Simplify your businesses payroll reporting with Employment Hero

Imagine if you could tick off so many financial year-end tasks in one go, by storing key information and making IRAS submissions on one secure digital platform.

Our all-in-one HR and payroll platform makes record-keeping, reporting and workforce management easy at the end of the financial year. Learn more about how we can help you by speaking with one of our small business specialists today.

Download the end of financial year checklist now.