What You Need to Know About Employer Returns – IR56F and IR56G

What You Need to Know About Employer Returns – IR56F and IR56G

  Once a Hong Kong company has hired an employee, the employer must adhere to various reporting obligations, specifically the filing of Hong Kong Employer Returns. While IR56B is among the most frequently mentioned Employer Returns that one has to complete, IR56F and IR56G are often required.
IR56F and IR56G are specifically used in instances when an employee ceases their employment with a Hong Kong employer (IR56F) and instances where an employee has ceased employment and will leave Hong Kong (IR56G).
In this article, we look to provide professional insight on what Hong Kong employers need to consider when completing these forms
What You Will Learn:
  1. What is an IR56F Form
  2. What is an IR56G Form
  3. How you Should Submit These Forms
  4. What to Consider When Filing IR56F and IR56G
  5. Why You Should Consider Engaging a Professional Service Provider
 
What is an IR56F Form?
An IR56F form is otherwise known as a Notification By An Employer of An Employee Who Ceases to be Employed. It is an Employer Return that is applicable to all staff who is about to have their employment contract terminated by their Hong Kong employer Hong Kong employers have to submit this form to the Inland Revenue Department (“IRD”) one month before the contract termination date of the employee in question. Source: Inland Revenue Department
What is an IR56G Form?
Employer Return IR56G is also known as The Notification By An Employer Of An Employee Who Is About To Depart From Hong Kong. This form is applicable to staff about to have their employment contract terminated and will also soon depart Hong Kong. Much like IR56F, Hong Kong employers should submit IR56G to the IRD within one month before their employee departs Hong Kong Source: Inland Revenue Department
What to Consider When Submitting IR56F and IR56G
If a Hong Kong employee has any share options granted by their employer, or any other corporation in respect of their employment with the Hong Kong employer that has not yet been exercised, assigned or released before his departure from Hong Kong, the Hong Kong employer is required to report the amount of shares not yet exercised, assigned, or released and the date of grant.
If an employer also has filed IR56G in respect of an employee, then they do not need to file form IR56B for the same income again if it has already been reported in IR56G
Occasionally, additional income would be payable to an employee after they have ceased to be employed by a Hong Kong employer. In such circumstances, the Hong Kong employer should furnish an “additional” form IR56F by reporting the additional amount in the appropriate item of the form
Why You Should Consider Engaging a Professional Service Provider
We understand that matters relating to HR administration are time-consuming tasks that require a significant amount of the company’s resources. Although such resources could otherwise be spent on revenue-driving activities, payroll and HR administration are essential aspects of running a successful business and will help ensure that a business does not unknowingly engage in non-compliance. FastLane HR can manage these essential business tasks, such as assisting you in completing your IR56F and IR56G on your behalf! Please contact the FastLane Group for further assistance!    

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