When employers and self-employed persons make mandatory contributions to the Mandatory Provident Fund (MPF), what are the ways to make contributions? According to the guidelines of the MPFA, MPF trustees accept contributions in various ways, including cheques, autopay, etc. But what are the matters that contributors need to pay attention to? This article will introduce the different contribution methods and precautions of the Mandatory Provident Fund (MPF) one by one.
What are the ways to pay Mandatory Provident Fund (MPF) Mandatory Contributions?
As an employer or self-employed person, it is a statutory duty to pay accurate MPF mandatory contributions to the MPF trustee before the deadline. They have the following ways/methods to submit contributions, There are also a few things to keep in mind to avoid being considered late or delinquent:
1. Mail the cheque to the trustee or designated bank branch
If any employer or self-employed person intends to submit Mandatory Provident Fund (MPF) contributions by cheque by post, the postmark date of the envelope will not be regarded as the date of payment of the contribution, so please make sure that it is on or before the contribution date Send the check and payment statement to the trustee with sufficient postage and delivery time.
Secondly, for the content on the check, please make sure that the information is filled in correctly; please also avoid being rejected by the bank to accept the check, beware of promissory notes or expired checks; at the same time, make sure that there is enough money in the bank account to cash the check, otherwise it may be regarded as unpaid Contributions.
If presenting the cheque to the bank branch or office designated by the trustee, please make sure to submit it before the cut-off time of the collection box. The date on which the contribution cheque and payment statement are submitted to the MPF collection box, bank branch or office/customer service counter will be regarded as the date of payment of the contribution.
Alternatively, employers or self-employed persons may choose to pay Mandatory Provident Fund (MPF) contributions in the form of autopay. Moreover, auto payers should also pay attention to whether the money is transferred on or before the contribution date, otherwise it may be regarded as a default payment.
Likewise, it is the responsibility of the payer to ensure that there are sufficient funds in the bank account to pay the full contribution, and also to check whether the debit is unsuccessful due to the upper limit on the transfer amount. All unsuccessful debits before the contribution period will be regarded as non-payment of contributions.
Although autopay is convenient, please do not forget to send the completed “complete and accurate” payment statement to the trustee on or before the contribution date. Otherwise, the trustee will not execute the automatic transfer and the employer will be charged Deemed contributions in arrears.
Self-employed persons are not required to submit a statement of payment, and the date of debit is regarded as the date of payment of contributions.
3. Direct account
As for the direct debit to the bank, please note that the date of debit is regarded as the contribution date. Just make sure to deposit the funds into the bank account of the MPF scheme and submit the payment on or before the contribution date. The payment statement is sufficient.
It should be noted that if you plan to pay online, please pay attention to the cut-off time of different online banking.
4. Debit reserves from employer account
Depending on the scheme rules, Mandatory Provident Fund (MPF) contributions may be deducted from the employer’s account as a reserve to pay for future contributions. Similarly, in the employer’s account, it is necessary to ensure that there is enough money to pay the deduction, and those who are insufficient can choose to deposit the difference on or before the contribution date.
Similar to the above, only the date on which the trustee receives a “complete and accurate” payment statement will be considered as the date the employer pays the contributions.
The above information is for reference only. If you have any questions about accounting, MPF, we welcome your enquiries.