Holding my pay

jhkim · Post by **jhkim** » Mon, 29 Aug 2005 12:20 am

I am an EP holder and recently resigned to move to other company. 15 of september will be my last day. I just got an email from the HR saying they will hold my Aug and Sept pay till my tax has been filed. According to them this process takes 3-4 weeks.

I only worked with them 3 month so I know my tax is less then 1000 dollar...why do they need to hold 2 months of my salary.

Is there any way out of this? Maybe I can go down there and pay the tax in full cash and release the hold?

riversandlakes · Post by **riversandlakes** » Mon, 29 Aug 2005 11:09 am

Please correct me if I am wrong. The firm has nothing to do with personal income taxes, no?

Don't we all need to file and pay lump sum at the end of every fiscal year?!

jhkim wrote:I am an EP holder and recently resigned to move to other company. 15 of september will be my last day. I just got an email from the HR saying they will hold my Aug and Sept pay till my tax has been filed. According to them this process takes 3-4 weeks.

I only worked with them 3 month so I know my tax is less then 1000 dollar...why do they need to hold 2 months of my salary.

Is there any way out of this? Maybe I can go down there and pay the tax in full cash and release the hold?

Bafana · Post by **Bafana** » Mon, 29 Aug 2005 9:30 pm

According to the tax law if you leave or change companies your present employer must hold your last paycheck until the tax office has worked out your tax bill and your company will decut it from the check. (Not two months - Your HR are just being prick, so tell them to release the money or you will complain to MOM)

Guest · Post by **Guest** » Wed, 31 Aug 2005 2:44 pm

Make sure you resign after getting the pay...preferably next day after getting a pay check.

riversandlakes · Post by **riversandlakes** » Thu, 01 Sep 2005 10:46 am

True. From my Employee Handbook,

In the case of any employee terminating their employment and they intend to leave Singapore, X is required to withhold the employee's final pay or an amount equivalent to one month pay until consent in writing to release these funds has been received from the Commissioner of Inland Revenue. When X receives the consent from the Commissioner of Inland Revenue, X may release the funds in accordance with the terms of that consent.

NOT 2 months? Ask your HR.

Bafana wrote:According to the tax law if you leave or change companies your present employer must hold your last paycheck until the tax office has worked out your tax bill and your company will decut it from the check. (Not two months - Your HR are just being prick, so tell them to release the money or you will complain to MOM)

Guest · Post by **Guest** » Fri, 02 Sep 2005 8:49 am

They are being a prick. We had a conference call with my dept manager and HR, and they said yeah by law one month but since it is company's responsibility to pay the EP hoder's tax when they leave they will hold more than required. So I told them I only worked for them for 3 month and you and I and everyone knows it will be less than 10 percent of my monthly salary, but they say "hei~rule is rule."

My dept manager really tried hard to curb the rule for me so I am satisfied. Guys be aware when you leave.

riversandlakes · Post by **riversandlakes** » Fri, 02 Sep 2005 1:24 pm

well, in the end, what can we the Little Potato Men do? maybe if you're not planning on returning EVER, leave immediately after the pay is out?

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