Advertisement

Contribution to EPF

159 Views  ⚫  Asked 1 Year Ago
asked on Oct 2, 2017 at 20:02
by   cynchong
edited on Oct 17, 2017 at 11:01
 
I am currently working as an admin and need to seek advice. My boss is drawing a director fee so he doesn't need to contribute to EPF but what about the employer 12% should I issue back to him?
0 had this question
Me Too
0 favorites
Favorite
[ share ]
2 Answers

answered on Oct 2, 2017 at 20:43
by   vkpc
my boss is drawing a director fee so he doesn't need to contribute to epf
Tell your boss that directors or business owners can opt to not contribute to EPF even if they are drawing normal salary.  You can call up KWSP office to confirm this.
So it doesn't matter whether is he drawing salary or director fee or both.

but what about the employer 12% should I issue back to him?
If he is not contributing to EPF, you cannot issue 12% back to him.
If you do, how will you explain this sum to the auditors later?
0 found this helpful
Helpful

answered on Oct 2, 2017 at 23:48
by   Mary
edited Oct 17, 2017 at 11:05
 
Director salary attracts EPF.
Director fixed monthly fee has to be adjusted as salary in the final accounts.
Director monthly allowances and claims treatment are again different. Check with your company's auditor.
0 found this helpful
Helpful

Your Answer





By posting your answer, you agree to the privacy policy, cookie policy and terms of service.