CPFB | Can corporate service buyers recover the overpaid Contribute-As-You-Earn (CAYE) contributions due to overpayment of full service fee?

Can corporate service buyers recover the overpaid Contribute-As-You-Earn (CAYE) contributions due to overpayment of full service fee?

If there is over-payment, corporate service buyers (CSBs) can request a full refund of the Contribute-As-You-Earn (CAYE) contributions from CPF Board within one year from the time the contribution was credited into the self-employed person (SEP)’s MediSave account (MA). The CSB will have to seek a refund of the remaining service fee made from the SEP directly. After receiving a refund of the CAYE contribution paid wrongly, the CSB will be required to re-submit the correct CAYE contribution via the CAYE digital services.

Example:

CSB A paid Mr Tan, their SEP vendor, a service fee of $120 through the bank mode. The bank deducted and paid $12 to Mr Tan’s MA and the net service fee of $108 to Mr Tan’s bank account. However, CSB A subsequently realised that the correct service fee amount agreed upon by both parties was $100. CSB A should:

Put in a request on the CAYE digital services for a refund of the CAYE contribution ($12) by selecting the transaction that was made in error (e.g. based on Mr Tan’s NRIC and the payment reference number) and providing the relevant supporting documents.
Seek the remaining $108 from Mr Tan directly.
Submit another CAYE contribution transaction for Mr Tan based on the correct gross service fee of $100.

Member

Employer

Employer services

Employer obligations

Making CPF contributions

Making Voluntary Contributions

Compliance and rectifications

Corporate service buyers

Employer services

Employer obligations

Making CPF contributions

Compliance and rectifications

Corporate service buyers

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