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What is CPF Withholding?

CPF withholding is a preventive measure in Talenox to ensure CPF contributions for employees (Singapore Citizens and Permanent Residents) and SHG contributions (where applicable) are always set aside from each payment created.

We help employers avoid a situation where salary is paid out fully in parts with insufficient balance to contribute the month end employee's portion of CPF. Having to claw back paid out salary from the employee can be unduly troublesome. 

This is especially helpful for employers who make multiple payouts for employees in a month, more commonly pertaining to hourly-rated part-time staff.

If you strictly make payments only once a month, always remember to process the CPF total for the month and refer to the Payroll & CPF summaries for the final calculation of net salary payable, together with respective contributions. 

Any amount that is withheld in excess after the month total processing is done will be reflected as 'reconciliation' under the bank/cheque listing. 

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