Payroll Administration & PCB Tax Calculations

The program looks at the various benefits-in-kind or cash that should be paid to employees as well as making the necessary deductions and contributions for socso, epf, eis and income tax. All the latest amendments are discussed.

The main reason why employees work is because of wages. Employees expect employers to pay wages according to the agreed terms in the contract of employment. On the other hand, Malaysian laws also state how pay should be paid and the benefits that should be provided either in cash or in kind. Laws also require that employers deduct employees’ salary and contribute together with employers’ contribution to SOCSO, EIS and the EPF. Further the laws also require employers to deduct employees’ salary for income tax (MTD/ PCB).

By the end of this workshop, participants will be able to:

• Calculate pay for work done during normal hours and on overtime during public holidays and rest days.
• Calculate the quantum for encashment of leave.
• Calculate sick leave entitlement and unpaid sick leave.
• Calculate paid and unpaid maternity leave.
• Calculate pay for incomplete month and unpaid period.
• Calculate pay for resignations and dismissals.
• Calculate retrenchment benefits.
• Calculate pay and benefits for part-timers.
• Compute SOCSO, EPF, EIS and Income Tax (MTD / PCB) deductions using appropriate tables and configurations.
• Compute VOLA and value of perks for income tax.
• Prepare the EA form correctly.
• Prepare the payroll report as per the latest laws of Malaysia. 

Methodology: 

• Presentations, discussions, workshop exercises, case-studies

Introduction

• Difference between wages and salary
• Contracts of Employment vs Employment Act 1955 & Labor Ordinances Sabah 2004 & Sarawak 2005
• Daily rated, monthly rated and piece rated employee

Rest Days & OT

• Minimum days of rest per week
• Payment rates for work during work hours and OT
• Can an employee be forced to work on a rest day?

Annual Leave & Unpaid Leave

• Minimum no of days of entitlement
• Encashment of leave
• Rate for work done during normal hours / OT rates
• Salary computation / deduction for unpaid leave

Paid and Unpaid Maternity Leave

• Maternity allowance / leave entitlement
• Conditions for Maternity Allowance eligibility
• Calculation for maternity allowance
• Payment for ex-employees
• Calculation for unpaid maternity leave

Resignations and Dismissals

• Minimum notice period
• Calculation for notice period
• Calculation for payment in lieu of notice period
• Calculation for last day of service
• Payment date of last salary

Part-time Employees

• Who are the part-time employees protected by EA ?
• No of annual leave days
• No of sick leave days
• No of work hours and OT rate
• No of PH and OT rate
• No of Rest days and OT rate
• Calculations for the benefits

Income Tax: Monthly Deductions
(MTD / PCB)

• Definition of wages for income tax deductions
• Minimum income level for income tax deduction
• Normal vs additional remuneration
• Exemptions from tax
• Using the schedule to compute MTD/ PCB
• Using the formula method to compute MTD/PCB
• Compulsory and optional deductions
• Rebates after tax
• Date of contribution

PH and OT

• What is the difference between compulsory and non-compulsory PH ?
• No of days of compulsory and non-compulsory PH
• Payment rates for work during normal hours and OT on compulsory and
• noncompulsory PH

Paid and Unpaid Sick Leave

• Hospitalization & Non-hospitalization Leave entitlement
• The ‘deemed-to-be-hospitalized’ clause
• Conditions for sick leave
• Calculation for unpaid sick leave

Wages Administration

• Definition of wages under the law
• Formula for calculation of salary for incomplete month
• Minimum and maximum amount of salary advance and loans
• Authorised and unauthorised deductions
• Limit in deductions
• Content of Pay Slip
• Payment date

Retrenchment

• Who is eligible for retrenchment benefits ?
• Who is not eligible for retrenchment benefits ?
• Notice period for retrenchment
• Calculation for payment of retrenchment benefits
• Payment date of retrenchment benefits

SOCSO & EPF & EIS Deductions & Contributions

• Who is eligible for deductions and contributions ?
• What types of income are subject to SOCSO and EPF ?
• Rate of deductions for different classes of employees
• Date of contribution
• Late contributions
• The Employment Insurance System (EIS)