Within the 12 months to 31 March 2023, our staff Mr. Peter CHAN had got two promotions. He was promoted from "Clerk" to "Technical Assistant", and again to "Artist". How should I complete his "Capacity in which employed" on the IR56B?
You should state his latest position - “Artist”. Provided that Peter was employed by the same employer and his total remuneration for the full year has been stated on the IR56B, his job position/title is normally for our reference only.
The IRD will have greater concern if Peter was engaged as a part-time employee or a director. In the former case, Peter may have another job in the same year and the IRD may get other reports of remuneration from other employers. In the latter case, IRD is concerned because the tax treatment of salaries and director fees is sometimes different.
In my personal capacity, I have employed two domestic helpers and one driver. As their employer, do I have to report their income to the IRD?
The same reporting requirements apply to an employer in business and a non-business employer. Normally if the employee is single and his/her annual income does not exceed the personal allowance (for example, $132,000 for the year of assessment 2022/23), you do not have to report his/her remuneration.
If the individual was employed for only part of the year; by proportion, you need not report if his/her income (including bonus) is less than $11,000 per month.
However, please bear in mind that you have to report the remuneration (regardless of amount) paid to all part-time workers and married persons. Hence you should report the income for the domestic helpers and the driver if the above conditions are applicable to them.
The above rules apply equally to employees who are non-residents but work in Hong Kong. However, if you employ a foreign domestic helper who is married and paying her the standard monthly salaries as specified by the law, you do not need to report her income to the IRD if you are quite sure that her spouse does not have any income in Hong Kong.
I have to give notification on form IR56F for an employee who is about to cease to be employed. How many copies are required to be filed with the IRD?
You need to file only one copy of form IR56F.
In the case of notification concerning the commencement of employment you need to file one copy of form IR56E.
However, for notification of any employee who is about to depart from Hong Kong, you should submit two copies of form IR56G to the IRD, and withhold payment of remuneration and other moneys due to him/her for one month or until he/she can produce “a letter of release” issued by the IRD.
After filing any type of form IR56s, the employer should pass a copy of the completed form to the employee and also retain a copy for own reference.
Do I need to file any Employer's Return in respect of fees paid to persons providing service to me but who are not my employees, such as sub-contractors and professional consultants?
If you have paid commission, fees or other remuneration to the following local individuals who are not your employees or to an unincorporated business:
- sub-contractors exceeding $200,000 per annum
- consultants, agents, brokers, freelance artistes, entertainers, sportsmen or writers etc. in excess of $25,000 per annum
You should file IR56M for each of these recipients under cover of a declaration form IR6036B.