06 - CPF Questions

CPF & TAFEP Questions
1. Ms. Ivy was hired as a purchaser and part of her job is to prepare invoice. The company has
implemented a new rule lately saying that any purchaser who made a mistake preparing the invoice will
have to pay $3 for each issued invoice (up to a maximum of $20.00 per month). Ivy was not happy with
this new rule and she didn’t say anything to the management. After a week on the job, she made 10
mistakes on a few invoices and her supervisor decided to deduct her pay on these mistakes.
Which categories of salary components will be affected by these deductions?
A. Basic Salary
B. Accommodation, amenities and services
C. CPF
D. A&C
E. All of the above
2. Calvin is paid with 2 months bonus in December 2017 on the condition that he continues his
employment with ABC Company for the next six months following the bonus payment. Calvin resigned
on 15 January 2018 and his day of work is 14 February 2018. The company has made a payment on
his CPF contribution for bonus paid in December. How will his resignation affect his February CPF
contribution?
A. There will not be any issue on his CPF contribution
B. There will be a refund of CPF contributions paid on his previous bonus
C. The CPF paid on his Bonus are considered as paid in error and it will be refunded
automatically by his employer.
D. His OW (ordinary wage) remains but he has to paid his employer on his AW (Additional
Wage)
3. Ms Tan has been working 5 months for retail company as a part-timer after she was retrenched last
year. She has been taking many annual leave applications recently and there was an excess of 2 days
leaves she has taken. She told her supervisor that she is resigning as she didn’t receive any CPF
payment but it was stated in the payslip that she has received CPF for the past 4 months. She has
requested for missing CPF payment to be paid to her before her last day pf work. What would you do
as her supervisor?
A. Refund the 4 months miss out payment as one payment and deduct her 2 days excess annual
leave in that 4 months payment.
B. Deduct her CPF on the excess 2 days annual leave taken and refund the 4 months miss out
payment to her Additional Wage CPF Account
C. Refund the 4 months of CPF payment into her bank account
D. Deduct her CPF on the excess 2 days annual leave and refund the 4 months miss out payment
into her Ordinary CPF Account
4. ABC company has been paying CPF contributions on 15th of the past 3 months, they were charge
for late payment by CPF board. The last time they had late payment on CPF contribution was one year
ago. What is the possible penalty they have to face?
A. Late payment interest charged at 18% per annum (1.5% per month)
B. Up to $5,000 court fine and no less than $1,000 per offence and/or up to 6 months'
imprisonment
C. Up to $10,000 court fine and no less than $2,000 per offence and/or up to 12 months'
imprisonment
D. Up to $10,000 court fine and/or up to 7 years' imprisonment
E. A&C
F. A&B
5. What should not be listed in the following job advertisement?
Looking for a customer service officer for a 6 days’ work week
Requirement:
1. Applicant must have a minimum of O’ Level qualification and 2 years of working experience
2. Prefer someone with relevant experience in handling customers in SEA
3. Applicant who can converse in Malay is preferred.
4. Applicant must know MS Office and SAP software
5. Must be able be someone who is physically fit and does not need assistance in traveling to
different site.
6. Applicant must be work well in a young working environment
Answer:
A. 1 and 5
B. 3, 5 and 6
C. 3 and 6
D. Only 6
6. Terry was attending an interview for drafter role with Morgan Power 3 weeks ago. Morgan Power
has requested personal details like photograph and a copy of his certificate during his interview
session. They told him that his credential as well as his national service liability will be taken into
consideration for this job application. He heard from his friend who is also working in Morgan
Power that they have hired someone and that means he is not shortlisted. When Terry called
Morgan Power to check the interview results, they mentioned to him that they do not revert their
interview results.
What are the wrongful actions Morgan Power have taken?

A. Morgan Power should have informed Terry about the interview outcome within 14 days from
interview.
B. Morgan Power should have informed Terry about the interview outcome and they should not
have collected his personal detail like photograph.
C. Morgan Power should have informed Terry about the interview outcome and they should not
have requested for his photograph and taken his national service liability into consideration
D. Morgan Power should have informed Terry about the interview outcome and they should not
have taken his national service liability into consideration
Answers:
1. D
2. B
3. B
4. E
5. B
6. C
Notes
Penalties for not paying CPF
If you don’t comply with the CPF Act, you may be liable to:
• Late payment interest charged at 18% per annum (1.5% per month), starting from the first day
of the following month after the contributions are due. The minimum interest payable is $5 per
month.
• A fine of up to $5,000 and no less than $1,000 per offence and/or up to 6 months jail.
• A fine of up to $10,000 and no less than $2,000 per offence and/or 12 months jail for repeat
offenders.
• Fine of up to $10,000, imprisonment of up to 7 years or both if you deduct your employee’s
share of CPF contributions but fail to pay the contributions to CPF Board.
Please be familiarize with CPF allocation table, Additional wage and ordinary wages concept and
calculation.
Calculation of CPF contribution on Additional Wages (AW) - The Additional Wage (AW) Ceiling sets the
maximum amount of AWs on which CPF contributions are payable per year. An employee's AW Ceiling
is computed on a per employer per year basis.
The CPF Annual Limit is the maximum amount of mandatory and voluntary contributions* to all three
CPF Accounts that a CPF member can receive in a calendar year. The current CPF Annual limit is
$37,740.

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06 - CPF Questions

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CPF & TAFEP Questions

Looking for a customer service officer for a 6 days’ work week

What are the wrongful actions Morgan Power have taken?

Penalties for not paying CPF

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