Close to 2,200 employers were reviewed by the Inland Revenue Authority of Singapore (IRAS) for their eligibility for the July 2020 Jobs Support Scheme (JSS) payouts.

Employers using unacceptable practices denied payouts

The JSS is meant to provide support to employers to offset part of the wages of local employees during the economic downturn caused by the Covid-19 pandemic.

The government announced on Aug. 17 that the JSS will be extended by up to seven months, covering 10 to 50 per cent of the first S$4,600 of gross monthly wages paid to each local employee up to March 2021.

Employers need not apply for the scheme, as the cash grant will be automatically computed based on mandatory Central Provident Fund contribution data.

However, a review of close to 2,200 employers revealed attempted abuse of the scheme by some employers.

A total of 444 employers were denied JSS payouts either partially or fully due to attempts to abuse the scheme, with four cases referred to the police for investigations.

Close to S$10 million worth of JSS payouts were denied.

Some employers received JSS payouts despite placing workers on no-pay leave

Examples of unacceptable practices include employers who placed workers on no-pay leave or retrenched employees, but continue to give CPF contribution to employees without change, resulting in employers receiving JSS payouts that they are not entitled to.

Other abusive methods include cutting employees' monthly wages but giving the same amount of CPF contribution without change.

Fraudulent arrangements that result in criminal liability include individuals who receive mandatory CPF contributions from an employer that they do not work for.

More information on unacceptable practices and fraudulent arrangements can be found on the IRAS website.

Over 300 reports from whistle blowers on employers suspected of abusing JSS

Employers under review would have their JSS payouts withheld until they are able to submit supporting documents to IRAS to verify the authenticity and accuracy of mandatory CPF contributions made.

Their payouts would be adjusted or denied if issues are found during the review, and egregious cases would be referred to the police.

This is part of IRAS’ anti-gaming efforts to ensure that JSS payouts are fairly and correctly disbursed.

According to IRAS, 50 employers have voluntarily declared errors in the mandatory CPF contributions that they have made for their employees, and their payouts have been adjusted accordingly.

Ahead of the October 2020 JSS payouts, employers are encouraged to review the mandatory CPF contributions for employees to ensure that they have contributed the appropriate amount, based on actual wages paid to bona fide employees.

IRAS added in its release that it has received over 300 reports from whistleblowers on employers suspected to have abused the JSS.

Businesses or individuals who wish to report any malpractices or potential abuses of the JSS may do so via email to [email protected] or online at go.gov.sg/jssreport.

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