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Accounting for salaries

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  1. #1

    Join Date
    Jul 2010
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    Accounting for salaries

    Hello

    i am new to HK. I have set up a company and live in HK running the company. I have done some research on what one needs to do to pay oneself a salary but have found nothing useful. Does anyone have a summary of what is required? Ie what forms are required to fill out for the tax department if any? What else the company needs to do in terms of red tape before the salary payments can be made to employees? and what other payments are necessary to comply with any HK laws?

    Thanks so much


  2. #2

    Join Date
    Jan 2008
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    company

    Your accountant, or whoever set up your company should advise you on what is required.


  3. #3

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    Quote Originally Posted by DAEHT:
    Ie what forms are required to fill out for the tax department if any?
    Just once a year, afaik, for the salaries tax return.

    As Oldtimer says, your accountant will know (and if they don't, get a new accountant very quickly).

  4. #4

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    Jul 2010
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    thanks for your replies but this doesnt really help - I dont have an accountant. Can anyone recommend one? One that can do the annual audit?


  5. #5

    Join Date
    Mar 2010
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    1. Pay yourself by cheque or cash once a month.
    2. Prepare a salary slip (not absolutely necessary but can be useful for audit).
    3. The Inland Revenue will send your BIR56 A and B forms for completion in April each year. These should be sent out within 1 month.
    4. You will also receive a personal tax return for completion.


  6. #6

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    MPF

    You have to register for MPF : pay the same to the bank where you open the account. Sent you PM for an accountant.


  7. #7

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    Dont forget telling the IRD that you have also employed someone (IR56E), and to make sure you employers' liability insurance.

    Employers


  8. #8

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    Quote Originally Posted by DAEHT:
    thanks for your replies but this doesnt really help - I dont have an accountant. Can anyone recommend one? One that can do the annual audit?
    Do you have a company secretary? This is often done by an accountant. If you want the details of an accountant for small businesses, pm me.

  9. #9

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    Jun 2005
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    Just out of curiosity, what sort of visa do you have?


  10. #10

    Join Date
    Jul 2010
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    6

    The HK LTD company that I set up sponsors me.

    So, from the information that has been provided I have set out below a bullet point summary procedure for any others that may need the same assistance:

    Any other considerations that have been omitted would be greatly appreciated

    From Companies perspective.
    1. Fill out form IR56E for each new employee (whether director or other).
    2. Ensure the company has employer's liability insurance (what is the impact if this is not the case?
    3. Setup the MPF contributions for each employee and pay each month
    4. Pay the agreed monthly salary to each employee from the company bank account.
    5. Complete the yearly forms (BIR56 A and B) that will be sent by tax department.

    From employees perspective
    1. The tax department will contact you following receipt of form IR56E form the company and advise what to do.


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