HRSINGAPORE Community Discussions
Payment of Salary By Another Company
Hi HR practitioners,
Can the payment of salary for company A employee from company B bank account? The amount will eventually be charged to the company A, CPF contribution, employment contract, payslip etc will still be reflected under Company A and Company A will be solely liable for the employee employment matter. Appreciate your comments.
We do that. One company's account used to pay about 5 different company's payroll. For CPF payment, the respective company's bank account is used for their own employees.
The payment of salary for company A employee cannot be paid directly from company B bank account. It contains confidential information of company A and its employee. Therefore it should be processed through company A internal control procedures.
It does not matter how and from where the company A is paying the employee as long as the employment contract, payslip etc reflects correctly that the employee is still legally employed by Company A but paid by Company B. For example, some of the expatriates are sent from the USA to work in Singapore office. Singapore office applies for employment pass etc and legally and logically the employer of the expatriates. But they are paid from the USA office instead still Singapore office is liable for paying whatever tax, etc.