Of the almost 2,200 employers under review for suspected abuse of the Jobs Support Scheme (JSS) in July, 444 have been denied payouts either partially or in full to the tune of almost $10 million.
Four are under investigation by the police, said the Inland Revenue Authority of Singapore (Iras).
In a statement yesterday, Iras said the employers under review will have their payouts withheld until they are able to submit supporting documents to verify the authenticity and accuracy of mandatory Central Provident Fund (CPF) contributions made.
Their payouts will be adjusted or denied if issues or discrepancies surface during the review, and egregious cases referred to the police.
"This is part of Iras' anti-gaming efforts to ensure that JSS payouts are fairly and correctly disbursed," said Iras.
The scheme, which comprises wage subsidies to help retain local workers, was recently extended to cover wages paid up to March next year 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.
As at last month, the authority had concluded a review of more than 1,400 employers. Close to 50 have voluntarily declared incorrect mandatory employee CPF contributions. Their JSS payouts were 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.
It also received more than 300 reports from whistle-blowers on employers suspected to have abused the scheme.
The police are investigating four suspected cases of employers who submitted false documents to substantiate their eligibility for the JSS.
The penalties include being charged under Section 420 of the Penal Code and facing up to 10 years in jail and a fine.
Earlier this year, Iras reminded employers who made incorrect mandatory employee CPF contributions to declare and rectify the errors via the CPF Online Application service by June 30. It had said that no action would be taken against them provided the disclosure was accurate and complete.
