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.

• 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:

• Add a Payslip

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

1. Go to the employee's profile.
2. Click on Add next to Payslip Inputs.
3. Select Income Paid Out After Tax Clearance under Income.
4. 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.
5. Click Save.

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

• Tax Clearance

To learn more about withholding income for the tax clearance:

• Income Withheld (Tax Clearance)