A long service award is taxable if it is in a monetary form. Long service award in non-monetary form is not taxable if the in-kind value is less than S$200 and you are not required to declare in the IR8A.
Any non-monetary long service award is fully taxable if the value is above S$200 and you need to declare this in the Appendix 8A.
To create a long service award without CPF contribution, please do as follows:
Go to the Payroll module, Pay Element Setup, and click New.
Key in the Pay Element ID and Description.
Click Next and select Allowance.
Select None of the above, and Next.
Select Standard Allowance, and Next.
Select Method as Free, click Finish.
Click Clear to remove all items in the selected box.
Click Save.