An employer is required to notify the Revenue of a new employee who is likely to be chargeable to Salaries Tax. That is his annual income larger than the basic allowance. The notification should be made in the form IR56E. The time limit for the notification is three months after the appointment date.

An employer is required to deliver a form IR56B to the Revenue in respect of every employee who is likely to be chargeable to Salaries Tax every tax year. The time limit is stated in the Revenue's letter annexed with the forms, usually one month of the letter.

An employer must notify the Revenue of the termination of employment of an employee who is chargeable to Salaries Tax. The time limit for the notification is at least one month before the termination. The notification should be made in the form IR56F.

An employer must notify the Revenue of an employee who is about to leave Hong Kong for more than a month. The notification should be made in the form IR56G. The time limit for the notification is at least one month before the date of departure. This notification is not required if the employee frequently travels in and out Hong Kong during his course of employment. After the notification, the employer cannot pay the employee without the permission of the Revenue.

The above provisions also apply to a person who is deemed to be employed under Section 9A of IRO or an office holder liable to Salaries Tax under Section 8.

Employers are required to report the employee's income even if it consists of a variable commission.

Free lance broker who does not have a fixed office and master-servant relationship with the company hiring them is treated as carrying on a business chargeable to Profits Tax. Nevertheless, the Revenue still requires the company to file quasi Employer's Return IR56M to report the sum paid to them.

The Revenue may impose penalty or take legal action against those employers who do not comply with the legal requirements.