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CPF setup for small US business

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anthem
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CPF setup for small US business

Postby anthem » Thu, 23 Aug 2012 3:21 pm

I am thinking of taking the plunge and applying for PR.

If any of you work for small US or foreign companies, I'd be curious to hear your advice on how you structured the CPF setup with your employers. How did you negotiate the process? Any tips would be welcome. I am the sole employee here in Singapore for now.

On a similar note, I'd also welcome your thoughts on how you pitched the notion of becoming a PR to your employer. After all, there is nothing in it for them, but it helps to have the PR if you are let go and you want to stay here.

Thanks in advance.

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sundaymorningstaple
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Postby sundaymorningstaple » Thu, 23 Aug 2012 3:56 pm

How long have you been in Singapore with this employer?

If you haven't been here for 3 years I don't think I would even bother at this point in time. If you are earning more than 8K/mo I think you would be better placed to apply for a PEP until you find out if your job is any more stable. As it sounds at the moment, it looks to me like you are just looking for a long term free visa if you lose your present position.

As far as CPF is concerned, start here: http://mycpf.cpf.gov.sg/Employers/Gen-I ... ployer.htm

Some companies insist you pay both your share and their share out of your own paycheque. Others just pay the CPF as it is one of the laws of doing business in Singapore. Or, they can fire you and find somebody who is not looking for PR in order to save a bob or two. Frankly, I wouldn't work for a company that is so cheap that they wont pay a maximum of $800 for their lone employee. (Payable on the first 5K/mo only).

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Strong Eagle
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Re: CPF setup for small US business

Postby Strong Eagle » Thu, 23 Aug 2012 4:06 pm

anthem wrote:I am thinking of taking the plunge and applying for PR.

If any of you work for small US or foreign companies, I'd be curious to hear your advice on how you structured the CPF setup with your employers. How did you negotiate the process? Any tips would be welcome. I am the sole employee here in Singapore for now.

On a similar note, I'd also welcome your thoughts on how you pitched the notion of becoming a PR to your employer. After all, there is nothing in it for them, but it helps to have the PR if you are let go and you want to stay here.

Thanks in advance.


More info needed. Are you working for a Singapore incorporated Pte Ltd that is wholly owned by the foreign/US company? If not, who are you working for, and how have you managed to obtain a work permit with no locally incorporated company?

anthem
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Postby anthem » Thu, 23 Aug 2012 4:22 pm

We have a local Pte. Ltd. and I am currently on am Employment Pass. So the Singapore entity is wholly owned by the US parent co.

I have also been here for 2 years as of September. Sorry for the confusion and thanks again in advance.

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Postby Strong Eagle » Thu, 23 Aug 2012 5:09 pm

anthem wrote:We have a local Pte. Ltd. and I am currently on am Employment Pass. So the Singapore entity is wholly owned by the US parent co.

I have also been here for 2 years as of September. Sorry for the confusion and thanks again in advance.


So... administratively, setting up for CPF is a no brainer... filing the employee's NRIC number to set up an account is about it.

Sounds like what you are really asking is: How do I get my employer to cough up more money? Technically (and legally) speaking, your employer is obligated to pay the employer part of CPF, which, for a new PR would be scaled down... but never more than S$450 per month.

Often, cheap sh*t local companies force the employee to pay both employer and employee contributions... cheap buggers that they are.

My company pays both employer and employee CPF for me. One thing to consider: If it is a US based company, they don't need to pay the employer contribution for social security if you are paid in Singapore... therefore, they can pay CPF instead.


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