LTH417The Central Provident Fund (CPF) Act And Its Practical Applications

COURSE SUMMARY

CPF Board takes a serious view on employers who do not fulfil their CPF obligations to their employees. More so, employers’ need to pay CPF contributions correctly and promptly for their employees. At the end of this workshop, delegates can be assured that they will be more competent in their understanding of the CPF Act and its practical application.

COURSE DETAILS

Course Fee SGD 480
Course Duration 1 Days
Course Timing 9:00am - 5:00pm
Course Venue 190 Clemenceau Avenue
SDF Approved Yes
Skills Future Credit Yes
Upcoming Courses 17 Sep 2019
17 Oct 2019

The recent case in which the Central Provident Fund (CPF) Board applied to recover nearly $417,000 in alleged CPF arrears from Jurong Country Club highlights the highly unsatisfactory state of the current legal distinction between employees and independent contractors Straits Times, 4 January 2019).

CPF Board takes a serious view on employers who do not fulfil their CPF obligations to their employees. More so, employers’ need to pay CPF contributions correctly and promptly for their employees. Therefore, does HR practitioners know the differences between ordinary wage, additional wages and total wages? What is the ceiling for ordinary and additional wages? Should overtime, back payment, transport allowance, meal reimbursement be paid by ordinary or additional wages? What are the common mistakes made by Payroll personnel when contributing CPF?

Upon detection of wrong payment or non-payment of CPF contributions, actions will be taken to recover the arrears or CPF contributions owed to employees. Interest on late payment and a composition amount may be imposed on the defaulting employer.

From the above, it is important that employers fulfil their CPF obligations to their employees. It is equally important that payroll administrators be able to process the payroll accurately and timely, and yet be able to understand the differences between the contract of service vs contract for service, ordinary vs additional wage, the rationale and basis of the legislation as to when, why and who should be paid.

The CPF Board and the Ministry of Manpower have also announced that they will continue to step up efforts to bring about greater compliance with the CPF Act and Employment Act to better protect employees.

At the end of this workshop, delegates can be assured that they will be more competent in their understanding of the CPF Act and its practical application. Central Provident Fund Act and its Practical Applications (Human Resource and Payroll Management)

Learning Objectives:

  1. Understand the background and purpose of the CPF Act.
  2. Know the different types of CPF account.
  3. Know the CPF contribution rates and what to be credited to the various accounts.
  4. Explain under what situation or circumstances whereby CPF would be payable.
  5. Contrast contract of service and contract for service.
  6. Know the differences and types of wages.
  7. Know which are the employee benefits that are taxable and non-taxable.
  8. Know the limits on CPF contributions.
  9. Know the various CPF schemes such as Special Employment Credit, Temporary Employment Credit, Wage Credit Scheme and Supplementary Retirement Scheme so that employers can reap the employee benefits, especially for low wage and older workers.
  10. Know the different modes of e-payment for CPF.
  11. Know the contribution for Skills Development Levy.
  12. Know the common errors in CPF computation by HR practitioners.
  13. Know the offences and penalties for infringement of the CPF Act.

A competent HR practitioner or Payroll Administrator must have the skills and knowledge in the following:

  1. Understand the background and purpose of the CPF Act • Overview of the CPF Act • CPF Act versus CPF website information

  2. Know the difference types of CPF and its purpose • Ordinary account • Special account • Medisave account

  3. Know the CPF contribution rates and what to be credited to the account • CPF for Singaporeans • CPF for Singapore Permanent Residence • e-CPF Calculator and CPF rate booklets

  4. Explain under what situation whereby CPF would be payable • Multiple employers • Students • Part-timers and casual labourers • Company directors • Employees working overseas • A foreigner on work passes

  5. Contrast contract of service and contract for services • Definition of contract of service and contract for service under common law • Factors in determining the contract for service

  6. Know the definition and type of wages • Ordinary wages • Additional wages • Total wages • Differences between allowances and reimbursement

  7. List out the employee benefits that are taxable and non-taxable • Accommodation benefit • Car-related benefit • Air passage • Insurance premium

  8. Know the limits on CPF contribution • Ordinary wage ceilings • Additional wage ceilings • Voluntary CPF contributions

  9. Assess the various CPF schemes in particularly for low wage and older employees • Special Employment Credit • Temporary Employment Credit • Wage Credit Scheme • Supplementary Retirement Scheme • Workfare Income Supplement • Workfare Training Support Scheme

  10. Modes of e-payment by employers • CPF e-submission by Web • Other modes of e-submission

  11. Know the contribution for Skills Development Levy and other CPF contributions • Chinese Development Association Council (CDAC) • Singapore Indian Development Association (SINDA) • Mosque Building and Mendaki Fund (MBMF) • Eurasian Community Fund (ECF) • Foreign workers levy (FWL) • Share programme

  12. Know the common errors in CPF computation by HR practitioners • Underpayment • Overpayment • Backpayment • Non-payment / Late payment • Submitting the wrong date/month

  13. Know the offences and penalties for infringement of the CPF Act • Enforcement by CPF Board Inspectors • Powers of CPF Board Inspectors • Minimum and maximum fines; and jail • Salient points on amendments to CPF Act on November 2013

  14. Review CPF case law • PN electronic Pte Ltd v Public Prosecutor • Ponggol Marina Pte Ltd v CPF Board (Public Prosecutor)

Human Resource Practitioners and Payroll Administrators.

Lecture and case study.

Arthur Khong

Arthur Khong

Arthur Khong is a highly sought after trainer for workshops in Singapore employment laws and industrial relations. Arthur has been an active workshop leader since 2007.

Arthur first embarked on his career in human resource management with Western Digital in 1993. To-date, he has held several senior Human Resource positions including: General Manager, Human Resources - Keppel Energy Pte Ltd Group Regional Vice President - Yeo Hiap Seng Ltd Director of Human Resource - Far East Organization, Hotel Group Director of Human Resource - Goodwood Park Hotel. Aurtur Khong left his last job with Keppel Energy in June 2013 to start the HR Law Academy where he conduct training and provide consultancy in Singapore employment laws and industrial relations legislation and practices.

In his 22 years’ career span in human resource management, Arthur has held regional human resource responsibilities for overseas subsidiaries in Malaysia, Hong Kong, China, Brazil and the USA. He is also experienced in industrial relations management as all the companies that he has worked for are unionised companies, some even with multiple unions. Prior to embarking on his human resource management career, Arthur was with the Singapore Police Force as a Senior Police Officer.

Arthur is an Adjunct Faculty with the Singapore University of Social Sciences (formerly known as SIM University). He started his lecture stint at SIM University in 2009. He lectures on the following modules:- Employment Laws and Legal Issues; Employment and Industrial Relations; and Human Resource Management.

Arthur is the author of the ‘Human Resource Practitioners’ Guide to Employment Laws (Fourth edition, 2017’, ‘Human Resource Practioners Guide to Industrial Relations (1st edition, 2015)’, and Human Resource Practitioners Guide in Drafting Employment Contract, and HR Policies and Procedures (1st edition, 2017). These guidebooks seek to outline the employment laws and industrial relations in Singapore in simple language to give HR Practitioners a better understanding of the rights and obligations of both the employer and the employee.

Arthur possesses the following academic qualifications:

  • Master of Management (HR Management) from Macquarie University
  • Graduate Diploma in Personnel Management from the Singapore Institute of Management
  • Bachelor of Arts (Economics) from the University of Manitoba
  • Bachelor of Laws (Honors) from the University of London
  • Diploma in Training and Development from Singapore Institute of Management
  • Graduate Certificate in International Arbitration from National University of Singapore.

Current Professional Affiliations:

  • Executive Council Member of Singapore Human Resource Institute
  • Non-Practitioner Member of the Law Society of Singapore Fellow Member of Singapore Institute of Arbitrators

Past Professional Affiliations:

  • Member of Industrial Relations Panel of Singapore National Employers Federation (SNEF)
  • Chairman of Industrial (Other Areas) Group of SNEF

View Other Courses by Arthur Khong