Chances are you’ve heard about the Mandatory Provident Fund (MPF) scheme in Hong Kong. This is a compulsory retirement scheme that is created by the Hong Kong government and provided by the approved private organizations. Actually, MPF is a vital aspect in the management of a company in Hong Kong together with its staff.
In this post, we will take you through some of the things you probably did not know about the mandatory provident fund Hong Kong. Keep on reading to find out more.
How to Set Up an MPF Account
Before you can finally take advantage of the MPF, it is advisable that you first understand what it takes to set it up. The good news is that setting up an MPF account is a simple process that won’t eat into your precious time. And, that’s easy to see why since the mandatory provident fund Hong Kong maintains a list of MPF approved Trustees, which employers may consider.
All you have to do is contact your MPF provider of choice and fill in the relevant employer application forms for the scheme you would like. Once the employer successfully enrolls in an MPF scheme, they’ll be issued an employer’s identification number. This number showcases your responsibility to help your employees in their retirement schemes.
Employee Contributions Under the MPF Regulations
One thing you ought to keep in mind is that the employees do not face as many compliance obligations as is the case with their employers. Despite this, it is critical for employees to ensure they make the regular mandatory contribution of 5% of their relevant income to the scheme of choice under the mandatory provident fund Hong Kong regulations.
The Bottom Line
These are just but some of the things you need to know about the Mandatory Provident Fund in Hong Kong. Remember, it is the responsibility of employers to look after their staff, and meet their legal obligations. To avoid the hassle that comes with handling everything single-handedly, why not outsource the payroll, tax and Mandatory Provident Fund (MPF) obligations to an outsider provider!
All it takes is for you to look for a reputable service provider such as Primasia Corporate Services Ltd and they will help prepare all the necessary documents, reports and filings. Check them out today and examine what they have in store for clients.