Form IR56E: notifying a new employee in Hong Kong

What Is Form IR56E for New Employees

Form IR56E is the employer's statutory filing to the Inland Revenue Department when a new employee starts work. It is a core part of payroll setup. This filing fulfills a duty under the Inland Revenue Ordinance.

The form notifies the IRD that an individual has commenced employment. This allows the department to issue the employee a personal tax return, Form BIR60, at the correct time. Form IR56E is filed separately from the annual employer's return, Form BIR56A, and the annual employee return, Form IR56B, which cover all staff for a given year of assessment.

Form IR56E Hong Kong

Form IR56E is one of several employer notification forms used by the Inland Revenue Department in Hong Kong. The IRD issues a series of forms for different employment events: IR56E for a new employee, IR56F for an employee about to cease employment, and IR56G for an employee about to depart Hong Kong. The annual return of an employee's remuneration is filed on Form IR56B, which is submitted together with the employer's return on Form BIR56A.

Notification of a New Employee

File the notification within a specific period after the commencement of employment. Submit Form IR56E as soon as practicable after the employee starts work, and no later than three months after the employee's commencement date. This requirement applies regardless of whether the employee is a Hong Kong resident or a foreign national, and whether the employment is full-time or part-time.

IRD Form IR56E

IRD form IR56E requires the employee's personal details: full name, Hong Kong identity card number or passport number, residential address, date of commencement of employment, and the terms of employment such as salary and nature of work. The employer must also state whether the employee is covered by an MPF scheme, as MPF enrolment is a related obligation under the Mandatory Provident Fund Schemes Ordinance.

Employer New Employee Notification

This notification serves a dual purpose. First, it informs the Inland Revenue Department that a new individual is earning income in Hong Kong and may be liable for salaries tax. Second, it helps the IRD cross-reference the employee's tax return against the employer's annual return, reducing the risk of under-reporting or non-compliance. Failure to file Form IR56E can result in penalties, as the IRD treats late or missing notifications as a breach of the employer's statutory duty.

Hong Kong Payroll Form IR56E

For Hong Kong payroll, form IR56E is part of the employer's ongoing compliance obligations alongside MPF enrolment and the annual tax filing cycle. When setting up a new employee on the payroll system, prepare Form IR56E at the same time as enrolling the employee in the MPF scheme, which must be done within 60 days of the employment starting. The form can be submitted through the Business Tax Portal or by paper to the Inland Revenue Department.

Keep a copy of each Form IR56E filed, together with the employee's contract and payroll records, for at least seven years as required by the Inland Revenue Ordinance. The IRD may request these records during a tax audit or investigation.