SINGAPORE - Close to 2,200 employers are under review for suspected abuse of the July Jobs Support Scheme (JSS), and 444 of them have been denied payouts either partially or in full to the tune of almost $10 million, said the Inland Revenue Authority of Singapore (Iras).

In a statement on Friday (Oct 2), Iras said that employers under review will have their JSS payouts withheld until they are able to submit supporting documents to verify the authenticity and accuracy of mandatory Central Provident Fund contributions made.

Their payouts will be adjusted or denied if issues are found during the review, and egregious cases will be referred to the police.

"This is part of Iras' anti-gaming efforts to ensure that JSS payouts are fairly and correctly disbursed," said Iras.

As at end-September, Iras had received documents from and concluded the review of over 1,400 employers.

Close to 50 employers have voluntarily declared the incorrect mandatory CPF contributions that they have made for their employees. Their JSS payouts have been adjusted before being disbursed.

"Ahead of the October JSS payouts, employers are encouraged to review the mandatory CPF contributions for employees to ensure that they have contributed the appropriate amount, based on actual wages paid to bona fide employees," said Iras.

Iras has also received over 300 reports from whistle blowers on employers suspected to have abused the scheme.

Cases of suspected abuse include employers submitting false documents to Iras to substantiate their eligibility for the JSS. It has referred four such cases to the police, who are looking into the matter.

Severe penalties for abusing the JSS include being charged under Section 420 of the Penal Code and facing up to 10 years' imprisonment and a fine.

The JSS of wage subsidies, to help employers retain local workers, was recently extended to cover wages paid up to March 2021 for firms in sectors harder hit by the Covid-19 crisis, and up to December this year for sectors which are managing well.

The subsidy applies to the first $4,600 of gross monthly wages paid to each Singaporean or permanent resident employee.

Support ranges from 10 to 50 per cent for wages paid from September onwards, depending on the projected recovery of the different sectors.

Earlier this year, Iras reminded employers who made incorrect mandatory CPF contributions to their employees to declare and rectify the errors via the CPF Online Application service by June 30.

It said no actions would be taken against them provided the disclosure was accurate and complete.