Link Search Menu Expand Document

Income Paid Out After Tax Clearance

Once IRAS issues a Clearance Directive telling you to release monies withheld to your employee, you can use SimplePay’s built-in system item to record this.

Before doing so, you should terminate the employee on the system. Use the following help page to learn how to terminate an employee.

Payroll Processing > Service Periods > Ending an Employee’s Service

Once the employee has been terminated, add a once-off payslip to capture the amount paid out after the tax clearance. Read more about adding a once-off payslip on the following help page:

Payroll Processing > Add a Payslip

When the once-off payslip has been added, the system item can be added as follows:

  • Go to the employees profile.
  • Click on Add next to Payslip Inputs.
  • Select Income Paid Out After Tax Clearance under Income.
  • Enter the amount to be released to the employee. This is the difference between the amount withheld and the employee’s tax liability to IRAS. If the tax liability to IRAS is more than 
  • Click Save.

To learn more about Tax Clearances, go to the following help page:

Payroll Concepts > Special Topics > Tax Clearance

To learn more about withholding income for the tax clearance:

Payroll Processing > System Items > Income Withheld (Tax Clearance)