employer's return

For every enterprise in Hong Kong, employer’s return can be very essential to run the corporation smoothly with no hassle.

In Hong Kong, the Employer’s Return is a form to report employees’ salaries, advantages, and pensions for taxation. Under the regulation, every organization is obliged to record such returns with the IRD in order to meet the necessities of taxation. Failure to achieve this on time may also bring about a penalty or maybe prosecution in court.

There are several types of Employer’s Returns, including:

IR56B: Annual return of employee remuneration and pensions.

IR56E: To report newly employed persons.

IR56F: For employees ceasing employment.

IR56G: For departing employees from Hong Kong.

Knowing and meeting these requirements would help in maintaining compliance and avoiding penalties.

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    What is Employer's Return of Remuneration and Pensions (IR56B)?

    The IR56B is the maximum not unusual Employer’s Return in Hong Kong, used for reporting to the Inland Revenue Department each yr on remuneration, advantages, and pensions paid to personnel.

    Purpose of the IR56B Form

    The IR56B form helps the IRD track employee earnings and ensure proper tax assessment. This form covers:

    • Salaries and wages
    • Bonuses
    • Allowances
    • Benefits-in-kind
    • Pension contributions

     

    When and How to File Form IR56B

    Employers must file the IR56B once a year, usually by 30 April each year. The form can be filed:

    • Electronically through the eTAX system
    • By hard copy, mailed to the IRD
    • On time submission meets the requirement of the I.R.D.’s.

    Who Needs to File an Employer's Return in Hong Kong?

    Any person or organization that employs workers in Hong Kong needs to file Employer’s Returns. This includes:

    • Big and small companies
    • Non-profit organizations
    • Employers of part-time, full-time, or contractual personnel

    Types of Employees Covered

    Employers who file returns for:

    • Permanent staff
    • Part-time workers
    • Salaried employees, waged employees, or commission-based employees
    • Directors and staff with benefits-in-kind
    • When to File Different Forms

    How to Complete and File an Employer's Return (IR56B)

    Step-by-Step Guide to Filling in IR56B

    Employer’s Information: Add the company name, Employer’s File Number, and contact information.

    Employee’s Details: Include employee name, identity card number, and position.

    Remuneration Detail: Including salaries, bonus or allowance, and any in-kind benefits.

    Pensions: State any contributions by the employer to the employee’s pension scheme.

    Documents Required

    • Copies of employment contracts
    • Records of remuneration and bonuses
    • Penson scheme contribution records

    How to Submit

    • Electronically through the eTAX platform (recommended for convenience and speed)
    • Send hard copy to the Inland Revenue Department

    Key Deadlines for Filing Employer’s Return

    IR56B: Annual submission due by 30th April

    IR56E: File within 3 months of hiring a new employee

    IR56F: Lodge 1 month prior to the employee ceasing employment

    IR56G: Lodge before employee leaves Hong Kong

    Common Mistakes Employers Make When Filing Returns

    Incorrect Employee Details: Wrong Names or Employee ID numbers

    Omitting Benefits-in-Kind: Forgetting to report non-cash benefits.

    Missed Deadlines: Not finishing work on time

    Incomplete Forms: Leaving required fields blank

    Tips to Avoid Mistakes

    • Check on employee info
    • Keep detailed records of all remuneration
    • Set reminders for deadlines of submissions
    • Use eTAX for faster, error-reducing submissions

    Get Professional Advice with FastLane HR

    Navigating Employer’s Return requirements can be complicated. FastLane HR offers expert services to help you:

    • Timely and accurate submission of Employer’s Returns
    • Avoid penalties and legal issues
    • Concentrate on building your business while we handle the paperwork
    • With FastLane HR’s help, you can make compliance simple and find peace of mind.

    FAQs on Employer's Return in Hong Kong

    1. What is the due date for filing IR56B?

    It is due on April 30th of each year.

     

    1. What if I miss the filing deadline?

    You can be fined or otherwise legally penalized.

     

    1. Can I file IR56B online?

    Yes, you can use the eTAX system for electronic filing.