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Take home pay each month if earning $200K

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

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aargon
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Take home pay each month if earning $200K

Postby aargon » Mon, 21 Sep 2009 6:38 pm

Say you are an new expat to Singapore and earned $200,000 per year, is it fair to say, your take home pay each month after tax would be roughly 180,000/12=$14,800?

I`m assuming that you would not be part of the CPF scheme, but wondering what other costs you need to factor you get your net pay.

Thanks

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Postby taxico » Mon, 21 Sep 2009 7:08 pm

nothing as sure as death and...

most people die once, but some get taxed twice!

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Re: Take home pay each month if earning $200K

Postby Strong Eagle » Mon, 21 Sep 2009 7:20 pm

aargon wrote:Say you are an new expat to Singapore and earned $200,000 per year, is it fair to say, your take home pay each month after tax would be roughly 180,000/12=$14,800?

I`m assuming that you would not be part of the CPF scheme, but wondering what other costs you need to factor you get your net pay.

Thanks


Mostly correct. It will depend upon what you have set up with your employer in terms of who pays for medical benefits for self and family, as well as other deductions that might be made.

In addition, Singapore personal tax rates are around 11 to 12 percent on the income you noted. An employer is liable for taxes if an EP skips, therefore it is somewhat common practice, though not legally required, for an employer to withhold sufficient amounts to cover income tax.

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Re: Take home pay each month if earning $200K

Postby aargon » Mon, 21 Sep 2009 7:27 pm

Strong Eagle wrote:
aargon wrote:Say you are an new expat to Singapore and earned $200,000 per year, is it fair to say, your take home pay each month after tax would be roughly 180,000/12=$14,800?

I`m assuming that you would not be part of the CPF scheme, but wondering what other costs you need to factor you get your net pay.

Thanks


Mostly correct. It will depend upon what you have set up with your employer in terms of who pays for medical benefits for self and family, as well as other deductions that might be made.

In addition, Singapore personal tax rates are around 11 to 12 percent on the income you noted. An employer is liable for taxes if an EP skips, therefore it is somewhat common practice, though not legally required, for an employer to withhold sufficient amounts to cover income tax.


Thanks strong eagle. I would assume my new coy (being a multinational coy) would pay for any medical benefits. Be wrong of them if they didnt...

A coy holding cash back on the account of you potentially skipping the country sounds dodgy.

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Re: Take home pay each month if earning $200K

Postby Strong Eagle » Mon, 21 Sep 2009 8:05 pm

aargon wrote:A coy holding cash back on the account of you potentially skipping the country sounds dodgy.


Why? They are liable to pay your taxes if you don't. It would and should be part of the terms of the employment contract. It is not unreasonable because there are plenty of cases of EP's who fail to save the taxes due, and or skip the country for a new job or to escape debts.

No... more often, it is a dodgy EP. It all boils down to the trust level.

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Postby aargon » Mon, 21 Sep 2009 8:33 pm

Yes, but i guess before you quit a coy, they usually hold off paying you your current months salary and any accumulated vacation time until the tax bill is sorted.

Unless the rate of those bailing out is so high that they would consider invoking such a rule for all employees, I dont consider it reasonable and quite frankly, its saying we dont trust you enough with money you have rightfully earnt, but we trust you enough to actually employ you, use our systems and information to do your job.

Trust is a two way thing. If they were dodgy to begin with, then the mistake was the coy to even hire them...

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Postby sundaymorningstaple » Mon, 21 Sep 2009 9:05 pm

As an HR & Finance Manager of a 200+ man SME here, I can vouch that there are more dodgy EP's than there are dodgy employers. While the IRAS "Requires" that an employer withholds the final monthly salary, think about it for a moment when the employee after receiving his salary for the month leaves on the 4th or 5th of the following month without giving notice. Happens all to often. That's why a lot of companies will withhold the estimated taxes during the course of the years in order to ensure that that does not happen. They are entirely within their rights and complaining to the MOM will not result in anything as these people are not covered under the employment act.

Welcome to Singapore.......

This is not your country and things are different here. One can take it or leave it. The choice is yours.... :wink:

sms

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Postby aargon » Mon, 21 Sep 2009 9:16 pm

sundaymorningstaple wrote:As an HR & Finance Manager of a 200+ man SME here, I can vouch that there are more dodgy EP's than there are dodgy employers. While the IRAS "Requires" that an employer withholds the final monthly salary, think about it for a moment when the employee after receiving his salary for the month leaves on the 4th or 5th of the following month without giving notice. Happens all to often. That's why a lot of companies will withhold the estimated taxes during the course of the years in order to ensure that that does not happen. They are entirely within their rights and complaining to the MOM will not result in anything as these people are not covered under the employment act.

Welcome to Singapore.......

This is not your country and things are different here. One can take it or leave it. The choice is yours.... :wink:

sms


SME, I can understand this practise taking place.

Luckily its not a SME that is offering me a job. What happens where I am from (as an expat :wink:) the coy sorts out my tax bill before i leave the country and deducts whatever they need from my final pay check.

Anyway, I very much doubt this will be an issue for me unless its required by law (which its not) :roll:

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Postby aargon » Mon, 21 Sep 2009 9:25 pm

sorry I should have mentioned before that my tax return is actually completed by my company here in Tokyo, and they will just deduct or refund me anything they need at the end of the year.... maybe singapore should consider doing something similar if disappearing EPs are a such common problem :???:

:mad: :x

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Postby Strong Eagle » Mon, 21 Sep 2009 9:47 pm

aargon wrote:sorry I should have mentioned before that my tax return is actually completed by my company here in Tokyo, and they will just deduct or refund me anything they need at the end of the year.... maybe singapore should consider doing something similar if disappearing EPs are a such common problem :???:

:mad: :x


I really do prefer Singapore's approach to taxation as opposed to the US mandatory deductions out of every pay check.

Nonetheless, it is sometimes difficult to ascertain the stripes of a new EP. I've hired some whom I've never even brought up the question... they have resources and roots, and non payment would be damaging for them.

OTOH, I have hired those looking for a break... no resources... looking for a chance to move up... and maybe a hard party'er and not great with the budget, either. I HELP these people and myself by enforcing the necessary fiscal discipline so that she and my company do not run afoul of the government.

Your situation is obviously different.


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