Tax Times Issue 6/2020Payday and monthly summaries
This issue highlights on the matters relating to the validations and lodgement of Payday and Employee Monthly Summaries (EMS).
Pay Day filing
- Pay Day filing is a new requirement which will be filed in Tax Portal Online Service (TPOS) based on the pay frequency of the pay cycles either monthly, fortnightly, bi-monthly or weekly.
- Employers will be required to upload the Pay Day files in TPOS as soon as their employees have been paid out.
- The specifications and format of Pay Day files are entirely different compared to the Employer Monthly Summary and the file formats and structures have been provided to Payroll Vendors.
- The PAYE system in the Taxpayer Online System (TPOS) is still being rolled out. Therefore, employers do not need to update their current Payroll Software for the new changes relating to Payday and EMS reporting.
- FRCS will inform the taxpayers in advance on the roll out dates which is expected to be around mid-2020.
- In the meantime, employers should continue to lodge the EMS under the existing process (i.e. sending note pad EMS files (flat files) to PAYE Validators ([email protected]). This process of lodgement will continue until the TPOS PAYE module is launched.
- FRCS will organize TINS and test environment, where Vendors can upload and have their respective files validated.
- Testing schedules will be forwarded to Vendors who have already requested for the validations. Upon successful validations of files (for those whose software have already been tested), Accreditation Certificates will be issued by FRCS.