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Grant Thornton services:
Reviewing the payroll and running payroll calculations.
Required assistance with complicated CPF calculations and did not trust their payroll provider.
They had recently moved between a local payroll provider to the Big-4. A number of ex-employees raised a complaint on how their commission payments were treated for CPF purposes. After a number of discussions with the CPF Board the CPF Board ruled in favour of the ex-employees.
They didn’t know how to deal with this and required external assistance with the calculations.
Effectively the commission payment communicated to the employees were gross of employer CPF when processed through payroll. However CPF Board ruled that it should have been net of employer CPF. Therefore there were cases where the client had underpaid CPF.
Grant Thornton reviewed the historic payroll for the ex-employees and calculated what the actual CPF payments should have been in each month. This meant that:
The company was able to agree payments with the CPF Board and the ex-employees. They were also able to estimate a provision for their accounts as other employees could potentially come forward.