Welcome to the seminar: MPFO Implications on Student/Temporary Helpers Employment

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

2. Agenda • The MPFO • The Impact on Helpers • The Impact on User Departments • New Operational Procedures and Forms for Users with effect from 1.12.2000 • Important Notes • Hot Lines • Questions & Answers

3. The MPFO - Introduction • Will come into effect on 1.12.2000 • 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

4. MPFO - Exempted Persons • Employees who, at 1.12.2000, 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

5. 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

6. 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

7. MPFO - Relevant Income Relevant Income includes: • Basic salary • Cash allowances • Gratuity • Overtime pay Excludes housing benefits

8. 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

9. The Impact on Helpers • Starts from 1.12.2000 • Helpers working for 60 days or more • Must enrol for MPF • Helpers are required to make 5% MPF contributions if monthly pay >$4,000

10. 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

11. 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

12. New Operational Procedures - • New Operational Procedures starts from 1.12.2000 • Payment of Helper handled by Unit Pay Payroll System • Each payroll cycle: starts from 15th of the month ends on 14th of the next month • Helper : complete the Recruitment Form + MPF Enrollment Form

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

14. New Operational Procedures – Example

15. New Operational Procedures – Daily and Monthly Procedures We will now go to … Linked Excel Worksheets Demonstration

16. 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

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

18. 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 • http://www.hkbu.hk/~fohome/mpfind2.htm

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