Under Contribute As You Earn (CAYE), corporate service buyers will only pay the net service fee directly to self-employed persons. Are there any legal implications?
Under Contribute As You Earn (CAYE), corporate service buyers (CSBs) will still be paying the full amount stated in the contract to the self-employed person (SEP), with a portion of the service fee credited to the SEP’s MediSave Account and the remainder paid to the SEP's bank account registered to PayNow (excluding PayNow Mobile Number and Virtual Payments Address). CSBs would be legally obliged to participate in CAYE under the CPF Act.
For audit purposes, CSBs will be able to view the transaction details and amount of CAYE contributions made on the CAYE Digital Services.
This information is sourced from CPF
Related questions
What happens if corporate service buyers fail to pay the Contribute As You Earn (CAYE) contributions?
What are the payment modes available under Contribute As You Earn (CAYE)?
Under the Contribute As You Earn (CAYE) scheme, will corporate service buyers only be making MediSave contributions for self-employed vendors?
Do corporate service buyers with existing CPF Submission Number (CSN) for making CPF contributions to employees need to register for a Contribute As You Earn (CAYE) CSN?
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