Who should IR56M be submitted for?

Form IR56M should be submitted for local persons such as:

Consultants, agents, brokers, freelance artistes, entertainers, sportsmen, writers, freelance guides, etc. to whom commission, fees or other remuneration paid exceeded a total of $25,000 per annum for the relevant year ended 31 March.
Sub-contractors to whom fees or other remuneration paid exceeded a total of $200,000 per annum for the relevant year ended 31 March.

Generating IR56M Forms in Talenox

You will need to prepare IR56M forms to print for mailing to Inland Revenue Department (IRD).

You can refer to the guide below or follow these steps:

Head over to Payroll > Payroll Settings > IR56M. Choose your Year of Assessment (YA) and click on "Generate IR56M".
Update your Employer Info by clicking on Step 1: Edit Employer Info
Double check all the IR56M forms to ensure that everything is in place.
Click on "Print selected employees" to print out hardcopy of the IR56M forms generated, sign each one and mail the forms to IRD.

IRD team will take a few weeks to check through before they send you an update through email and/or mail.

Eligibility for IR56M Generation in Talenox

There are certain criteria that has to be fulfilled before IR56M forms can be generated for your staff. The following are some of the criteria needed:

Immigration Status - the correct status has to be selected in employee profiles
Pay Items selected in Payroll - only certain pay items will be eligible for mapping over to IR56M forms during generation

1) Immigration Status

To select an employee's immigration status in their employee profiles, head to Profiles > Employee Listing > Edit > Identification Documents > Immigration Status to select the appropriate one for employees.

The following Immigration Statuses are for Admins to select for their staff to be eligible for IR56M generation:

Subcontract (local) (no MPF)
Freelance (local) (no MPF)

2) Pay Items selected in Payroll

Specific pay items should be used to record down the amounts paid out to users with the Subcontractors/Freelancers immigration status indicated above. These amounts keyed into payroll will then be mapped to IR56M forms accurately in Talenox.

You can utilise the following pay items under the Monthly Payment/Deduction tab and the Ad Hoc Payment/Deduction tab during payroll processing:

Basic Pay
Subcontractor fees
Commission

Mapping of Pay Items in Payroll to Form IR56M Fields

Pay Item Processed	IR56M Mapping Fields
Monthly Payment/Deduction tab: Basic Pay Basic Pay (without proration) Ad Hoc Payment/Deduction tab: Incentive Hourly/Daily Attendance tab: Regular Days Regular Hours 4/5 Average Daily Wage Average Daily Wage Deputy	Immigration Status is "Subcontract (local)(no MPF)" = Item 7 - Type 1: Subcontracting Fees Immigration Status is "Freelance (local)(no MPF)" = Item 7 - Type 2: Commission
Monthly Payment/Deduction tab: Subcontractor Fees Ad Hoc Payment/Deduction tab: Subcontractor Fees	Item 7 - Type 1: Subcontracting Fees
Monthly Payment/Deduction tab: Commission (daily/weekly/monthly) Ad Hoc Payment/Deduction tab: Commission (Irregular)	Item 7 - Type 2: Commission

NOTE: All other pay items besides those listed above will not be pulled over to IR56M for processing. IR56M generation is only available for SUITE plan users.

Here are some resources you can refer to from IRD on tax forms filing e.g. IR56M:

Have a great tax season!