Make Up Pay Claim Question

[Kyoji83]

CPF: If your salary is $1K, you pay $200 (20%) & your Employer pay $170 (17%) regardless if you serve ICT or not since it is not included in MUP.

IRAS (If HR help you claim MUP): If your rank pay is $200 & go back for half a month ICT. You lose $500 from salary for going back for ICT. So HR help you to claim $400 since SAF pay you $100 (half month) for your ICT. HR will file $500 in IR8A & SAF will file $500 which mean $1K for that month.

IRAS (If HR did not help you claim MUP): HR will file $1K in IR8A & SAF will file $100 which mean $1.1K for that month.

no implications as such lapse are common.

cpf wise, u should had gotten more especially from the Employer's Contribution as i do not think there is a percentage from your MUP goes there (if u already had a MUP application filed and approved).

Iras, no issues as it is still the same amount of income u are getting regardless if there is MUP or not, with the exception of additional income by Mindef on allowance such as rank/service pay.

but if i m not wrong, u are suppose to have either applied for MUP via NS portal which your HR will be alerted on such upcoming transaction when u received your SAF100, or when u applied for Paid-Leave due to NS-matters (provided your HR system practices that).

no need to worry so much about it. most likely only the HR and Finance Dept will have some points deducted from their annual audit.

 

[FrontierX]

Not digging this thread.
My employee is suppose to claim my makeup pay for me serving ICT but has not done so because of admin lapse. But it has continued to pay my salary as if I have never gone for ICT in its eye. It finally realises when lapse was discovered and now it is too late to file for make up pay claim.

My qns is will there be any implications with regards to cpf or tax filing?

I have encountered this TWICE in my coy, and got paid by coy and mindef..
Eg; monthly income 5k, mindef service pay 1k.


Personal - receives income from both sides. 5+1=6k
IRAS - pays tax total income received. total taxable income 5+1=6k
Mindef - pays serviceman 1k
Coy-pays employee 5k, BUT DID NOT file make up claim from mindef. total loss 1-5k=(-4k). coy also pays cpf as usual.


1. if coy doesn't file MUP, their total loss in the MUP.
2. from taxman point of view they do not lose out as both income are being taxed.
3. serviceman/employee gains both mindef and employment income as MUP is not filed.


till now, no problems faced with my HR. I just take my money and song song gao jurong every high key ICT