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Lim
11/08/2009 10:37:03
Re: Employee Tax Clearance

We informed the IRB one month before the employee resigned and noted that there are tax to be paid. When we detain the last drawn salary for tax purposes, she asked why didnt her previous employer practise such policy?
What should the company reply ? Should we withold the small amount for tax clearance ?

Can she settle the payment by herself after leaving the company.

Please advise
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CK
11/08/2009 23:46:25
You can leave it to her to settle with IRB as you have already informed IRB of her resignation. But in order to avoid any confusion or discrepency in the future, you have the rights to withhold the small amount for income tax clearance purpose. Just tell her that this is something that she is bound to pay, and there is nothing to lose when it is paid through the company.
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