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STEP 2 – Creating Allowances and Deductions
In Actpay Payroll, there are 15 fields for allowances, 10 fields for deductions and 5 BIK/external payments can be added to the monthly screen. Several common allowances and deductions have already been included.
All items can be modified. New allowances and deductions can also be added.
Editing is normally not necessary in most cases as the default Allowances and deductions are enough for most purposes.
- User the Filter to filter to show only Allowance, Deduction or PCB items.
- Choose the appropriate category for each item. In the example, Travelling allowance is part of gross salary and PCB Calculations but does not attract EPF and SOCSO. The PCB limit figure of 6,000 signifies that the first 6,000 is exempted from PCB calculations.
- Tips / Perquisites / Others is ticked to show this amount will displayed in this category in the EA Form.
- Additional Remuneration is only for allowances that a paid once in a while. Examples are bonus, gratuity, special award etc.
- Tax Exempt is for items that are not included in PCB calculations, e.g. meal allowance, phone bill, parking etc.
Add new Allowance / Deduction
This screen is used to set up allowances, deductions and PCB items. There are many default items already available for the user. Where necessary new items can be added. The existing values can also be edited to fit the companies requirements.
To add a new item, click on “Add“. To make changes click on “Edit“.
Type : This can be “Allowance”, “Deduction” or “PCB”
Description : Description of Item
There are 7 main options here.
Gross : All allowances and deduction that affect gross salary. There are some allowances like benefit in kind that are not paid in the monthly salary.
Fixed/Normal : These are items that a paid monthly like commissions and phone. This is not ticked for items that are not paid regularly, but on a adhoc basics. Under 2013/2014 rules, most allowances fall into this category.
EPF : Allowances that attract EPF
SOCSO : Allowances that attract SOCSO
PCB : Allowances that attract PCB
BIK : Benefit in Kind. This needs to be different from PCB items because they affect printout of EA form.
Zakat : Only used for Zakat deductions.
EA Form Category
Some of these allowances will fit into one of these 3 main EA categories. This setting is only used for printing the EA form.
Once completed, click on “Save” to save the changes.