Welcome to the seminar: MPFO Implications on Student/Temporary Helpers Employment Helen Leung Finance Office 10 November 2000

2015/7/142 Agenda The MPFO The Impact on Helpers The Impact on User Departments New Operational Procedures and Forms for Users with effect from Important Notes Hot Lines Questions & Answers

2015/7/143 The MPFO - Introduction Will come into effect on It is an employment-related contribution system Covers all employees of age 18 to 65 with a few exemptions Include full-time & part-time employees working for 60 days or more Also include Student/Temporary Helpers

2015/7/144 MPFO - Exempted Persons Employees who, at , have attained 64 years of age Members of MPF-exempted ORSO schemes People from overseas [ include China & Macau ] who enter HK for employment for < 1 year, or who are covered by overseas retirement schemes

2015/7/145 MPFO - Employee Contribution Mandatory = 5% of relevant income Starts from 31st day of employment If relevant income < $4,000 ==> contribution is optional If relevant income > $20,000 ==> maximum contribution is $1,000 Any amount > mandatory will be voluntary

2015/7/146 MPFO – Employer contribution Mandatory = 5% of relevant income Starts from 1st day of employment If relevant income > $0 ==> contribution is required If relevant income > $20,000 ==> maximum contribution is $1,000 Any amount > mandatory will be voluntary

2015/7/147 MPFO - Relevant Income Relevant Income includes: Basic salary Cash allowances Gratuity Overtime pay Excludes housing benefits

2015/7/148 MPFO - Withdrawal of Benefits Attain the age of 65 Retire between age 60 & 65 Death or total disability Depart from HK permanently (once only) Small balance [<$5,000] and no mandatory contribution for past 12 months

2015/7/149 The Impact on Helpers Starts from Helpers working for 60 days or more Must enrol for MPF Helpers are required to make 5% MPF contributions if monthly pay >$4,000

2015/7/1410 The Impact on Helpers – cont’d Such Contribution will be deducted from their Salaries. Before start of work: Helper must complete Recruitment Form and Enrolment Form

2015/7/1411 The Impact on User Departments Extra 5% have to be budgeted for MPF contribution Collect Helper Recruitment Form and MPF Enrolment Form Keep proper time records (Time Record Sheet & Monthly Payroll Summary) Submit Monthly Payroll Summary to FO

2015/7/1412 New Operational Procedures - 1.New Operational Procedures starts from Payment of Helper handled by Unit Pay Payroll System 3.Each payroll cycle: starts from 15 th of the month  ends on 14 th of the next month 4.Helper : complete the Recruitment Form + MPF Enrollment Form

2015/7/1413 New Operational Procedures- cont’d 5.User : Completed Forms + Monthly Payroll Summary => FO in the 1 st month of employment 6.FO will keep these Forms for 12 months 7.Helper working for same dept (with break intervals), no need to complete Forms again unless changes of personal particulars 8.Helpers will be paid at the end of month

2015/7/1414 New Operational Procedures – Example DATEHELPERUSER DEPARTMENT 20/2/2001Start work, Complete Recruitment + Enrolment Forms Keep Completed Forms 20/2/ /3/2001 Record Working Hours in Timesheet 14/3/2001Final update Payroll Summary print for checking & approval 15/3/2001Send Recruitment Form + Enrolment Form +Payroll Summary →FO 28/3/2001Receives Payment

2015/7/1415 New Operational Procedures – Daily and Monthly Procedures We will now go to … Linked Excel Worksheets Demonstration

2015/7/1416 Important Notes Employment of helper will terminate if he/she does not work for a continuous period of 60 days Users please file the Payroll Summary for all their helpers every month

2015/7/1417 Important Notes Period of Claims:  Any claims before 1/12/2000  Existing Reimbursement Procedures  1 st Claim of New Procedures : 1/12/2000 – 14/12/2000  Subsequent Months: 15 th of Month to 14 th of Next Month

2015/7/1418 Hot Lines Personnel policy Ms Alice Chu Ext 7512 Financial issues Miss Winnie Chu Ext 7915 Ms Melinda Young Ext 7925 Claims Procedures Ms Law Sui Sum Ext 7803 Miss Noel Cheung Ext 7917 MPFO information

MPF Implications on Student/Temporary Helpers Employment Questions and Answers Thank You