If you remit your MPF contributions for your employees late or with an insufficient amount to your trustee, this is probably what is going to happen next:
- Your trustee will have to report your default to MPFA.
- MPFA will then issue a Payment Notice to you to recover the default contributions and surcharge for your employees.
What to do when you receive a Payment Notice?
1) Once you've received a Payment Notice from MPFA, the first thing you'll need to do is verify directly with your trustee on the reason for default.
Here are several common reasons that your trustee will report to MPFA on your default:
- No contributions or insufficient contributions received;
- Late payment, i.e. payment received after the contribution day even though the amount of contributions is correct;
- Incomplete or inaccurate information in the remittance statement making your trustee unable to verify whether the amount of contributions you have paid is correct; or
- Failure to report the termination of employment of your employee(s).
2) Submit the defaulted amount, additional surcharge and compulsory separate remittance statement
You'll have to prepare the following for submission to your trustee:
- Defaulted MPF contribution amount
- Surcharge - Fully due to the employees and calculated as 5% of the contributions in default
- Separate remittance statement - includes employees name and amounts to be paid for each employee
Please refer to this link on the MPFA webpage for more information on MPF late payments. 😁
How to key in this additional surcharge amount into Talenox?
When you have paid out the additional surcharge incurred, how do you key this amount into Talenox to ensure that it is reflected correctly for the balancing of your company accounts?
You'll need to key in the additional surcharge by making an adjustment to the statutory amounts reflected in the system:
1) Head to Payroll > Payroll settings > Month Total > Edit statutory details
2) Then, adjust the MPF Employer amounts for the respective employees depending on the surcharge amounts owed to each affected employee. Do remember to 'Save' these amounts keyed into the system: