You need to familiarize yourself with the Employer’s Return of Remuneration and Pensions, otherwise referred to as Form BIR56A and IR56B, if you are a Hong Kong employer, HR manager, or business owner. The forms are essential components of the Hong Kong Inland Revenue Department’s (IRD) annual tax reporting mechanism.
They make sure workers’ earnings are properly reported for tax evaluation purposes, and failure to comply may result in penalties. In this article, we’ll discuss:
What the Employer’s Return entails.
- When and how to file it by whom
- How to file it step-by-step
- Common mistakes and solutions
What Is the Employer's Return of Remuneration and Pensions?
The Employer’s Return is a yearly tax reporting obligation of employers in Hong Kong, and it is composed of two principal components:
- BIR56A – A summary cover sheet of the employer’s details
IR56B – A year-round report of each employee’s income, benefits, and allowances earned throughout the year.
Who Must File?
- All firms, both large and small, including SMEs, not-for-profits, and corporates
- Employers who paid full-time, part-time, or contractual workers—even though the work lasted only a portion of the year
Relevant Employees Covered:
Local employees
- Expatriates working in Hong Kong
- Directors and temporary employees.
- Workers retiring or quitting from Hong Kong
When to File Employer's Return in Hong Kong
General Deadline:
The employers need to publish the Employer’s Return within a month of the attention from the IRD.
Filing Triggers:
You need to document when the IRD issues a notice, even though there have been no employees or no bills in the course of the year.
Special Situations:
New employees may require an extra IR56E form.
- Employee resignation or termination: Submit an IR56F
- Employee departing Hong Kong: File an IR56G form as early as 1 month from departure
- Closure of business or termination of employment: Inform IRD using suitable forms
The Process of Filing the Employer's Return of Remuneration and Pensions
Step-by-Step Filing Procedure:
- Receive the IRD notice (usually by mail or eTAX)
- Download BIR56A and IR56B forms or visit the IRD’s e-Filing Services
- Prepare information on each employee’s:
- Compensation and wages
- Bonuses and allowances.
- Commissions or pensions
- Housing or other benefits
- Complete the BIR56A with the consolidation of all IR56Bs
- Send forms by post or online
Filing Methods
- Manual filing: Mail paper forms to IRD
- Electronic filing:
- eTAX portal (for small businesses)
Employer’s Return e-Filing Services, tailored for larger employers or those requiring bulk filing.
Instructions for Accuracy:
- Verify employee details and numbers
- Keep payroll and benefits records organized
- File early to prevent last-minute problems
Delayed or Inaccurate Submissions Consequences
Not meeting your filing obligations may lead to:
- Prosecution or penalties under the Inland Revenue Ordinance
- IRD estimates on the basis of incomplete information.
- Employee tax clearance delays
Common Mistakes to Avoid:
- Missed deadline
- Missing or inaccurate employee details
- Not submitting terminated or departed employees
How FastLane HR Can Help
Tax returns like the Employer’s Return can be tedious and prone to mistakes—especially for SMEs or firms without a whole HR department. That’s where FastLane HR steps in. Here’s how we make it simpler:
- Computerized payroll records for facilitating IR56B preparation
- Automatic reminders for the tax filing date e-Filing support for a trouble-free electronic filing.
- Dedicated HR experts to keep you compliant and penalty-free
Allow FastLane HR to deal with the paperwork so you can concentrate on expanding your company.