Self-employed Persons

How to avoid non-compliance?

SEPs should take note of the following common misconceptions to ensure they comply with the relevant requirements and avoid contravening the law. 

Misconception: Since my employer has enrolled me in an MPF scheme and has made contributions for me, I do not have to enrol myself in an MPF scheme as a self-employed person even though I have other personal businesses. 

Enrolling in an MPF scheme 
If you are both an SEP and an employee concurrently, you have to enrol in an MPF scheme in the capacity of SEP and employee respectively. As an SEP, you have to enrol yourself in an MPF scheme. As an employee, your employer must enrol you in an MPF scheme and make mandatory contributions for you. 

Misconception: As my business has been suffering losses, I am not required to make MPF contributions, and there is no need for me to return the notice from the MPF trustee to report my relevant income. 

Handling MPF contributions 
SEPs should report to the MPF trustee their relevant income at least 30 days before the end of the financial year of the scheme. This will be used as a reference for calculating the mandatory contributions for the next financial year. Even if the business sustains a loss, SEPs are still required to report their relevant income to their MPF trustee. After reporting the situation to their MPF trustee, SEPs can suspend their mandatory contributions from the current contribution period.