Some consultants in Enterprise M are not employees of the company, but they will work in the company for a period of time. So how do you set up tax declarations for such personnel?
Notice ⚠️ :
IR56M applies to the notification of remuneration paid to persons other than employees
1. If the payee is a corporation, there is no need to fill in the IR56M form；
2. If the remuneration is paid to non-resident entertainers and athletes, please fill in the IR623 form instead of the IR56M form；
3. Employers must submit the original signed form. The Inland Revenue Department does not accept forms returned in photocopies/faxed copies/scanned copies；
4. Employers can also use the Employer’s Electronic Tax Filing Service to declare relevant remuneration.
Special Reminder: IR56M tax form only applies to the type of employment: the person whose "employment type" in the system is a "Freelance".
Enter ［Tax］> ［Settings］> ［Enable］> ［Edit］.
Click on ［Edit］ > enter to IR56M Details Interface，select relevant items from Particulars (such as contract fees, commissions, writer/contribution fees, etc. ), then on the right to fill in Income Additions, Income Deductions > 「Save」.
Notice ⚠️ :
Before the calculation, make sure if employees' files are complete. Just click ［File］ > 「Employment Type」（Freelance） > 「View」.
Check if employees' files are complete:
Click ［View］, enter File Details and click ［Edit］. You need to fill in all Personal Information ( Chinese Name, Join Date, Position, English Last Name, English First Name, HKID, Passport No., Passport Place of Issue, Sex, Marital Status, Residential Address, Region Code (required), Name of the principal employer, Tax Identity, Other Income Name), after inputing all information, click ［Save］.
Besides, you should also check the Basic Information in ［Company］, ［System Display Name］ , ［BR Name］, ［BR No.］, ［Phone Number］, ［Email Address］, ［Company Address］. Check Employer's Return Form Info see if you input correct ［Full Name of Signer］ , ［Designation］, ［Employer's File No.］ and click ［Save］.
Enter ［Calculation］ > ［New］ > select ［Tax Form Type］ to IR56M and its ［Period］ > ［Confirm］.
Click ［View ］, you can view the Tax Report Details and ［Recalculate］, ［Add］, ［Delete］or ［Close］it.
［Edit ］or［ Delete］ employee's information, click ［Edit］ to edit employees' Basic Information, Income Details, Residential Address Details and Other Details.
When editing Staff Information, the grey field cannot be changed. If you need to change, you can enter ［People］to complete this staff's information through filtering
( only employees whose ［Employment Type］ is Contract is applicable in IR56M Tax Return).
In addition, if you manually change the Amount in Income Details and click ［Save］, you should click ［Lock］ so that the correct amount will be carried when making ［Recalculation］.
Download Tax Report. Enter ［Report］ > choose IR56M report > ［Download］( PDF forms are available for employees to view, and XML forms are available for tax returns to be uploaded to eTAX), select proper ［Cycle］ and ［Form Category］> ［OK］. In ［Form Category］, the system provides 4 categories: Original ( no subjects modified or added）, Replacement ( modify some subjects) , Additional ( add some subjects), Supplementary ( supplement relevant subjects).
After downloading the XML form, you can use the text editor to check if the content is complete and correct.
Note ⚠️: Please provide Employer's File No. / Business Registration No. and Name of the User(s) before uploading using e-Tax.
Workstem will assist to apply to use IR56 Forms Preparation Tool of Self-developed Software and will inform you after the IRD approves it.