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SINGAPORE: Employment Support Scheme (JSS) payments worth about S $ 10 million were denied to 444 employers, either in part or in full, after “unacceptable practices” were observed, the Authority said. Singapore Internal Revenue (IRAS) on Friday (Oct 2).
Some of these practices include employers who make the usual amount of contributions to the CPF to a worker who has received unpaid leave or whose salary has been reduced.
“By making mandatory CPF contributions that do not reflect actual wages paid, the employer will receive more payment from JSS than they are entitled to,” said IRAS.
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Some employers were found to have made contributions to the CPF to people who are not their actual employees or have asked workers to return a portion of their monthly salary in cash.
These are “fraudulent arrangements,” the IRAS said, adding that providing personal information to employers to facilitate such schemes can make an individual an accessory to the fraud.
In cases where the monthly salary of employees exceeds S $ 4,600, it was found that some companies split salaries among business entities to circumvent the JSS salary cap.
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Four “egregious” cases have been referred to the police for alleged abuse by the JSS.
“These include employers who submit false documents to IRAS to substantiate their JSS eligibility,” the tax authority said.
EMPLOYERS REVIEWED FOR ELIGIBILITY
The JSS, First announced in February, it helps employers retain local workers amid the economic uncertainty of COVID-19 by subsidizing wages through a cash grant.
IRAS said companies with unacceptable practices were identified through its review of about 2,200 companies for July payments.
This is part of their anti-gaming efforts to ensure JSS payouts are fantastic and paid out correctly.
“Employers under review will have JSS payments withheld until they can submit supporting documents to IRAS to verify the authenticity and accuracy of mandatory contributions to the CPF,” the authority said.
“Their payments would be adjusted or denied if problems are detected during the review, and egregious cases would be referred to the police.”
READ: COVID-19 – More than 130 companies return salary subsidies to the Employment Support Program worth S $ 97 million
IRAS said it had received documents and completed the review from more than 1,400 employers at the end of September.
To date, about 50 employers have voluntarily reported incorrect mandatory CPF contributions made for employees, IRAS said.
He added that he has received more than 300 complaints from whistleblowers about employers suspected of abusing the JSS.
Employers who attempt to abuse the JSS may be liable for the crime of cheating, which carries a jail term of up to 10 years and a fine.
Companies or individuals who wish to report any JSS-related negligence can do so online or by email at [email protected].
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