Guide to IR56F Tax Form

JULY 1, 2023

From the first employee hired by the employer, the implementation of tax responsibilities needs to begin. Different categories of employees are required to submit appropriate tax returns to the tax bureau, which will be used by the employer to report the taxable income of their employees. This article will describe in detail the IR56F form, which aims to assist employers in filling out tax returns more easily in the future.

What is IR56F?

IR56F is a "Notice by an Employer of an Employee Cessation of Employment," which is applicable when an employee resigns. It needs to be completed and submitted to the tax bureau one month before the employee's cessation of employment.

What needs to be filled out in IR56F?

In addition to personal information, IR56F requires filling out the cessation of employment date, reason for cessation, and total income from April 1 of the latest tax year to the cessation date. This does not include severance payments or long-service payments as stipulated in the Employment Ordinance, and does not deduct employee contributions such as Mandatory Provident Fund (MPF).

Failing to record the correct cessation time, date, or reason for an employee's resignation can cause significant inconvenience in the future. Colleagues in the human resources department will need to inquire about all the details of the departing employee once again. CLG Group provides Workstem, a comprehensive human resources management system for various companies, which is an all-in-one HR management platform that can handle attendance records, payroll calculations, and save on labor costs while reducing the chance of human error. It also enables one-click generation of tax returns and the ability to access historical records in the future. Please contact us to learn more about the details.