Payroll, Accounting and Tax for a Self-Employed EP Business

Self-Employed EP Payroll, Accounting and Tax: Reconcile the Records

Reconcile the employment agreement, actual payroll payments and company accounts. Record periods, amounts, currencies and changes. Director remuneration, dividends, reimbursements and salary have different purposes. Tax compliance does not replace EP eligibility. Confirm classifications with the accountant and keep traceable source records.

Keep transaction and pay records

Align salary arrangements, payments and accounts. Set monthly handover dates for bank records, invoices and payroll rather than replacing ongoing records with a last-minute explanation.

Separate filing responsibilities

Check IRAS guidance for corporate income tax, ECI and other applicable matters. Pass processing, corporate maintenance and tax filing are separate responsibilities with defined providers and scope.

Maintain an annual calendar

Use one calendar for financial year-end, accounting handovers, secretary matters and pass expiry, assigning owners. Update it when plans change to reduce deadline-driven catch-up work.

Preparation Example

If different providers handle accounting and secretary work, set handover dates and responsibilities. Prevent a document being overlooked because each provider assumes the other will handle it.

Pre-consultation Checklist

Monthly record handovers; salary and payment reconciliation; tax responsibility; annual maintenance calendar.

EP Questions and Practical Answers

Should EP payroll records be assembled only at renewal?

Ongoing records are easier to verify. Keep genuine payments and employment changes monthly and resolve differences promptly. Do not invent payroll or label all personal transfers as salary. Prepare evidence according to actual requirements.

Official Reference

IRAS ↗