Central Provident Fund

Question 1

WHO SHOULD YOU PAY CPF FOR?

a) local employee
b) job type
c) contract of service
d) none of the above
e) all of the above

Answer 1

E

local employee

• Singaporean citizen
• Singaporean PR

job type

• part-time
• permanent
• causal

contract of service
-employer-employee relationship

Question 2

CPF contributions are payable if employees are employed under a contract of service_____

a) Employer and Employee relationship
b) Remuneration in monies for work done
c) none of the above
d) all of the above

Answer 2

D

Question 3

What are the features of that employee who are under a contract of service receiving CPF contribution have?

a) Control of working hours
b) Right to hire and dismiss
c) Benefits – leave, bonus, insurance, etc.
d) Need to serve notice of resignation
e) Use of facilities, tools and equipment
f) none of the above
g) all of the above

Answer 3

G

Question 4

Who can be Employees receiving CPF contributions?

a) Family workers
b) NSmen on in-camp training
c) Part-time/ casual employees
d) Students
e) all of the above
f) none of the above

Answer 4

E

Question 5

Who is exempt from CPF contributions?

a) Foreigners working in Singapore, e.g. on Employment Pass
b) Singapore Citizen / Singapore Permanent Resident Employees working overseas
c) none of the above
d) all of the above

Answer 5

D
Foreigners working in Singapore, e.g. on Employment Pass
o CPF contributions are not allowed

Singapore Citizen / Singapore Permanent Resident Employees working overseas

o CPF contributions are not mandatory

Question 6

What are the main CPF responsibilities of an Employer?
a) Employer needs to pay CPF for both Employer’s and employee’s share
b) Employer has a grace period of 14 days after the end of the month to pay the
CPF contributions.
c) none
d) all of the above

Answer 6

D

The employer has a grace period of 14 days after the end of the month to pay the
CPF contributions.
o Interest will be charged for late payment at 1.5% per month

Question 7

How is an employee’s cpf contribution being computed?

a) total wages for a calendar month.
b) total wages for two calendar month.
c) total wages for a calendar year.

Answer 7

A

Question 8

Under the CPF Act, wages are defined as________________________

a) remuneration in money due or
b) granted to an employee in respect of his employment
c) remuneration based on his daily work attendance
d) a,b
e) b,c

Answer 8

D

Question 9

What are the types of payments that attract CPF contributions include (but is not limited to)?

a) Bonuses
b) Commissions
c) Laundry allowances
d) Meal allowances
e) Overtime allowances
f) Transport allowances
g) all of the above
h) none of the above

Answer 9

G

Question 10

What determines the amount of CPF payable?

a) Citizenship of Employee – Singapore Citizen (SC) or Singapore Permanent Resident (SPR)
b) Age
c) Total wages
d) all of the above
e) None of the above

Answer 10

D

Question 11

CPF is payable once a Foreign Employee obtains SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit issued by ICA.

a) True
b) False

Answer 11

A

Question 12

How does an employee’s citizenship determine their CPF Contribution during their 1-3 years of work with the company?
a) For the first 2 years, both Employer and SPR Employee will pay CPF at graduated rates (reduced rates).

b) For the first 2 years, both Employer and SPR Employee will pay CPF at increment rates.

c) From the 3rd year onwards, both Employer and SPR Employee will pay CPF at full rates (rates for an SC Employee).
d) a,c

Answer 12

D

SG Citizen- 37%

SG PR- 9%-24%-37%

Question 13

What happens if a 1st/2nd-year SPR Employee converts to a Singapore Citizen (SC) in the middle of the month?

a) Apportion the wages for that month according to the period where the employee
was still a 1st/2nd year SPR and where the employee became a SC
b) Apply the relevant rates* on the apportioned wages
i) 1st/2nd-year SPR contribution rates for wages earned during the period where the employee was still a 1st/2nd-year SPR, and
ii)SC contribution rates for wages earned from the day he became a SC
c) all of the above
d) none of the above

Answer 13

C

Question 14

How are CPF Contribution Rates from 1 Jan 2016 for SC/3rd year of obtaining SPR status? employees age 55 & below? how much is the cpf contribution rate by the employer and employee? what is the total cpf contribution rate from both employee and employer?

a) 17% +20% = 37%
b) 7% +20% = 27%
c) 37% +10% = 47%

Answer 14

A

Question 15

How are CPF Contribution Rates from 1 Jan 2016 for SC/3rd year of obtaining SPR status? employees above age 55- 60? how much is the cpf contribution rate by the employer and employee? what is the total cpf contribution rate from both employee and employer?

a) 1% +20% = 21%
b) (13%+1%) +(10+1)% = 25%
c) (13%+1%) +(13+1)% = 28%

Answer 15

C

• CPF contribution rates for workers above 55 will be raised from 1 Jan 2022. (Deferred by one year from 1 Jan 2021 to help employers manage costs amid the Covid-19 pandemic)

Question 16

How are CPF Contribution Rates from 1 Jan 2016 for SC/3rd year of obtaining SPR status? employees above age 60-65? how much is the cpf contribution rate by the employer and employee? what is the total cpf contribution rate from both employee and employer?

a) 1% +20% = 21%
b) (9%+1%) +(7.5+1)% = 18.5%
c) (13%+1%) +(13+1)% = 28%

Answer 16

B

Question 17

How are CPF Contribution Rates from 1 Jan 2016 for SC/3rd year of obtaining SPR status? employees above age 65? how much is the cpf contribution rate by the employer and employee? what is the total cpf contribution rate from both employee and employer?

a) 1% +20% = 21%
b) (7.5%+0.5%) +(5+1)% = 14%
c) (13%+1%) +(13+1)% = 28%

Answer 17

B

Question 18

How does the change of CPF Contribution rate going to affect the change of age group?

a) 55th, 60th or 65th birthday
b) 45th, 30th or 75th birthday
c) 55th, 60th or 85th birthday

Answer 18

A

Question 19

When will the change of the contribution rate of the next age group is applicable?

a) from the first day of the month after the month of his 55th, 60th or 65th birthday
b) from the third day of the month after the month of his 25th, 40th or 55th birthday
c) from the last day of the month after the month of his 55th, 60th or 35th birthday

Answer 19

A

Question 20

What are the formulae for total wages for an employee?

a) Total Wages (TW) = Ordinary Wages + Additional Wages
b) Total Wages (TW) = non-ordinary Wages + extra Wages
c) Total Wages (TW) = weekly Wages + bonus

Answer 20

A

Ordinary Wages (OW): Monthly salary, food allowance etc.

based on cpf: OW Ceiling = $6,000 per month

Additional Wages (AW): Annual bonus, leave pay etc.
AW Ceiling = $102,000 – Total OW subject to CPF FOR THE YEAR 

FYI
The ordinary wage ceiling for CPF contribution is $6,000 per month. The total ordinary wages (OW) will be capped at $72,000 (i.e. 12 months x $6,000) per year and the overall income cap on compulsory CPF contributions is $102,000 (i.e. 17 months x $6,000).

Question 21

Mr. Tan joined the company in Jan 2016 and draws a monthly salary of $20,000. He receives AW of $10,000 in Jun 2016. What is the AW subject to CPF in Jun 2016?

a) $10,000
b) $20,000
c) $30,000

Answer 21

Estimated AW Ceiling in Jun 2016
AW subject to CPF in Jun 2016
= $102,000 - ($6,000 X 12) = $102,000 - $72,000
= $30,000
= $10,000 (< $30,000)

A

remember that whatever you receive in AW = AW is subject to cpf

Question 22

continued question from 21

Mr Tan continues to draw a monthly salary of $20,000 for the rest of 2016 and
receives AW of $25,000 in Dec 2016. What is the AW subject to CPF in Dec 2016?

a) $42,000
b) $30,000
c) $20,000

Answer 22

C

Actual AW Ceiling as at Dec 2016 = $102,000 - Total OW (subject to CPF paid in 2016)
= $102,000 - $72,000 = $30,000
AW subject to CPF in Dec 2016 = $30,000 - $10,000 = $20,000

Question 23

continued question from 22

Mr Lim drew a monthly salary of $5,000 in 2015 and had a $1,000 increment in 2016. He receives an AW of $15,000 in Jun 2016. What is the AW subject to CPF in June 2016?

a) $42,000
b) $30,000
c) $20,000
d) $15,000

Answer 23

D

Estimated AW Ceiling in Jun 2016
AW subject to CPF in Jun 2016
= $102,000 - ($6,000 X 12) = $102,000 - $72,000
= $30,000
= $15,000 (< $30,000) 

note
Employers are allowed to use the current year’s OW to estimate the AW Ceiling if the OW is more than $5,000. This is because the current year’s OW Ceiling is higher than the previous year’s OW Ceiling. However, if the OW is less than $5,000, employers should use the previous year’s OW to estimate the AW Ceiling.

Question 24

continued from question 23

Mr Lim continues to draw a monthly salary of $6,000 for the rest of 2016. He receives an AW of $30,000 in Dec 2016. What is the AW subject to CPF in Dec 2016?

a) $42,000
b) $30,000
c) $20,000
d) $15,000

Answer 24

D

Actual AW Ceiling as at Dec 2016 = $102,000 - Total OW subject to CPF paid in 2016
= $102,000 - $72,000 = $30,000 AW subject to CPF in Dec 2016 = $30,000 - $15,000 = $15,000

Question 25

What is wage band?
a) CPF is payable when the total wages earned by an Employee in a calendar month
exceed $50.
b) CPF is payable when the average wages earned by an Employee in a calendar month
exceed $100.
c) CPF is payable when the quartely wages earned by an Employee in a calendar month exceed $250.

Answer 25

A

Question 26

What is the wage band from 1 Jan 2016?

a) >$50 to $500
b) >$500 to $500 to

Answer 26

D

Question 27

______ wages according to the calendar ______ in which CPF contributions are computed

a) Divide, year
b) apportion, month
c) Add, weeks

Answer 27

B

Question 28

If you have paid _____ CPF than required for your employee(s), you may apply for a refund of the contributions paid in error within_____ year from the date of payment

a) less, 2
b) more, 1
c) less, 4

Answer 28

B

Question 29

What are the formulae for CONTRIBUTIONS PAID IN ERROR? (CPF Contribution)

a) contribution in error = amount of cpf paid - amount of cpf contribution payable
b) contribution in error = amount of cpf unpaid - amount of cpf contribution non-payable
c) contribution in error = amount of AW paid - amount of OW contribution payable

Answer 29

A

Question 30

Which of the following is false about contribution in error?

a) Online application can be made via the MOM website
b) Employee must be kept informed of the refund application
c) CPF Act Section 74 – the Board may refund CPF only if the amount has been paid in error, i.e. there is a discrepancy between the amount of CPF contributions paid and the amount of CPF contributions computed as being payable at the close of that calendar month

Answer 30

A

Online application can be made via the CPF website

Question 31

What are some examples of Mistakes by Employers for Paid in Error Cases?

a) Computation /payroll system error e.g. system bug
b) Delayed notification of employees’ change of employment status
c) Made wrong or duplicate payment
d) Used the wrong CPF contribution rate
e) Applied the full CPF contribution rates for 1st and 2nd year SPR employees
f) all of the above
g) none of the above

Answer 31

F

Question 32

What are some examples of Recovery and Enforcement of CPF Arrears?

a) Detection System
b) Industry Surveys
c) Employees’ Feedback
d) Enforcement Inspections
e) Legal action sanctioned under the cpf act
f) all of the above
g) none of the above

Answer 32

F

Recovery and Enforcement of CPF Arrears
 Detection System
 Industry Surveys
 Employees’ Feedback
 Enforcement Inspections
o On-site visits to workplaces (e.g. interviews of employees, inspection of wage records, etc.)
o Audits of employees’ wage records
 Legal
o Composition amount, up to $1,000 per charge o Court fines
o Criminal and civil proceedings

Question 33

What Employers should have before they can make CPF contributions?

a) SingPass
b) Company’s Unique Entity Number (UEN)
c) Home Address
d) CPF Submission Number (CSN) which comprises UEN and CPF Payment Code
e) CPF e-Submit@web
f) Payment via Direct Credit
g) a,b,d,e
h) c,f

Answer 33

G

SingPass
 Company’s Unique Entity Number (UEN)
 Email Address
 CPF Submission Number (CSN) which comprises UEN and CPF Payment
Code, except in these cases:
o For individuals hiring local employees such as a personal driver, the
CSN is the ‘NRIC/FIN + CPF Payment Code”
o For individuals hiring foreign domestic workers or individuals who are
self-employed, the CSN is the individual’s NRIC/FIN.
 CPF e-Submit@web
 Payment via Direct Debit

Question 34

What are the ways to submit CPF Contribution?

a) CPF e-submit@web
b) CPF e-submit@AXS
c) Provident and Tax (PAT)
d) all of the above
e) none of the above

Answer 34

D

Question 35

What are the Items in a payslip that attracts CPF contribution?

1) Attendance allowance
2) Anniversary cash award
3) Annual wage supplement/bonus
4) Cost of living allowance
5) Dirt allowance
6) Part-time / casual Employees
7) Education allowance
8) Extra duty allowance
9) Festive allowance
10) Gratuity
11) Grooming and hair cut allowance
12) Holiday expenses
13) Hand-phone and pager expenses
14) Housing/rental expenses
15) Incentive allowance
16) Laundry expenses
17) Long service award
18) Long Service award
19) Leave pay
20) Maternity allowance
21) Meal expenses
22) National Service (NS) Make-up Pay
23) Per diem allowance
24) Personal clothing allowance
25) Probation period pay
26) Productivity award
27) Sales performance award
28) Share option
29) Stand-by duty allowance
30) Termination benefits
31) Tips
32) Transport expenses
33) Service charge
34) Commission
35) Flexi-benefit expenses
36) Flexi-benefit expenses
37) Handphone and pager expenses
38) Handphone and pager expenses
39) Education/training reimbursement
40) Entertainment expenses
41) Housing / rental expenses
42) Incentive allowance
43) Laundry expenses
44) Finders introduction fees
45) Gifts in kind
46) Holiday expenses
47) Meal expenses
48) Share option
49) Share option
50) Termination benefits
51) Transport expenses
52) Work Injury Compensation Act
53) Maternity subsidy
54) Per diem reimbursement
55) Staff welfare benefits

Answer 35

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