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How do I handle negative CPF contributions that prevent finalisation of the final payslip of the year?

When SimplePay recalculates CPF contributions on the final payslip of the year to ensure that employees have contributed the correct amount, you may encounter a situation where a CPF refund results in a negative value. This typically occurs when there has been an overcontribution of CPF during the year that needs to be refunded to either the employer or employee.

Why the system blocks finalisation

If a payslip shows a negative CPF contribution amount, the system will prevent you from finalising it. This is because negative CPF values cannot be reported in the official CPF submission to the CPF Board.

How to resolve this

When you encounter this blocker, you will see a warning message indicating that a CPF refund is due. To proceed with finalising the payslip:

  1. Note the negative CPF amount that appears on the payslip.

  2. Add a CPF Adjustment item to the employee's payslip with the corresponding positive value to zero out the negative amount.

  3. Once the CPF contribution no longer shows a negative amount, you can successfully finalise the payslip.

  4. Apply for a refund with the CPF Board by following the process outlined on its website.

Compliance note

This adjustment ensures compliance with CPF submission requirements while still accurately tracking the refund amount that is owed.