Step 4. Statutory Deductions

Step 4. Statutory Deductions


  1. 1. STATUTORY DEDUCTION DEDUCTED ON THIS PAYMENT PERIOD WILL BE RECONCILED AT EVERY OTHER PERIODS.
    1. Statutory deduction will be deducted in this period, and it will be reconciled in the statutory calculations in every other periods
    2. Example : Bonus paid in Mid Month. Bonus will include statutory calculation based on the setup for Normal Income (Basic). Statutory will be deducted in Mid Month, and in every other periods, like End Month, the Statutory calculation will include the Bonus paid in Mid Month.
    3. To Note : In order to have a more accurate Statutory deduction in Mid Month, please update the Career Progression and process End Month before processing Bonus. This is to ensure shall there be any Resign employee within the month, the Basic and Fixed Allowance will be prorated and the calculation will be more accurate
  2. STATUTORY DEDUCTIONS DEDUCTED ON THIS PERIOD WILL NOT BE RECONCILED AT ANY OTHER PERIOD.
    1. Statutory deduction will be deducted in this period, and it will not be reconciled in the statutory calculations in every other periods
    2. Example : Commission from previous year received in current year. Statutory till be deducted but not included in statutory calculations in every other period
    3. To Note : This method is no longer in use since the new requirement for commission received is to be included in current year remuneration
  3. STATUTORY DEDUCTION AT CURRENT/THIS PERIOD WILL ONLY BE DEDUCTED AND RECONCILED AT ANY OTHER PERIOD.
    1. No statutory deduction in this period, statutory deduction will only be deducted in End Month and reconciled in the statutory calculations in every other periods
    2. Example : Advanced Pay for festive season. Employee Basic is RM4,000. Mid Month pay RM2,000 without statutory deduction. During End Month salary payment, will be paid the remaining RM2,000 with deduction of the full Statutory Deduction.
  4. NO STATUTORY DEDUCTION.
    1. No deduction and no reconcile in every other period

 

Step 4 is where you may set whether you want to include the statutory deduction to be included here. For companies with more than one Payment Period, you may choose to include the statutory deductions here or not. 

For each Statutory Deduction (EPF, SOCSO, TAX and VOL) you can decide to include any one of it, or all of them just by choosing from the drop down list. 

Click 'Next Step' when you are ready. 

Go to Step 5. Payroll Process Validation - Upload File


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