Statutory Settings

Statutory settings can be accessed and updated by clicking on the 'Payroll Settings' tab on your payroll dashboard > Statutory Settings.

There are 2 sections to this page:

1. Statutory Settings
2. Statutory Form settings

Statutory Settings

The 'Statutory Settings' section consists of the following fields:

• ITN/C: The Income Tax Number (ITN) or C Number (company tax number) is a 12 or 13 digit alphanumeric number e.g. TF 1023456709 or C 2584563202. This is used when reporting income details to the LHDN/IRBM. If the ITN/C number is not provided you may not be able to generate forms or files for income reporting. This field will pre-populate from the business details page. 
• E Number: The E Number is a 10 digit number used when reporting income details to the LHDN/IRBM. The number contains an E at the front, however this does not need to be added into the system as it will automatically be added. If the E Number is not provided you may not be able to generate forms or files for income reporting.
• EPF Number: EPF number can be found on Borang A (No.Rujukan Majikan). This is an optional field;
• EPF Rate:This field has now been set to view only starting 1 July 2022 after EPF rates have been adjusted back to the regular rate. 
  
  Available EPF Rate settings and what they mean
  
  • 'Automatic - default EPF rate'- Note: Any new businesses will have this setting by default. This option automatically applies the relevant default EPF rate based on the pay run dates. 
  • 9% - Note: Setting no longer available. The reduced rate option was given during the pandemic till Jun 2022 only. 
  • 11% - Note: Businesses who have opted to contribute the standard rate instead of the reduced rate during the Pandemic, the Borang KWSP 17A (Khas 2021) form must be completed by the employee. For employees 60 years and over, depending on the employee's residence type, the applicable EPF rate of 0% or 5.5% is automatically applied in the pay run. Refer to EPF contribution rates for more information.
• Additional Employer EPF: Default setting is unticked. When this option is ticked, you are able to select '% of gross' (not including 'EPF Exempt' earnings) or '$ fixed'. Once chosen, it will work the same way as individual employee pay run inclusions, however when set at the business level, ALL employees will get the additional employer EPF applied in the pay run. 

Important information regarding EPF

Starting 1 July 2022, the reduced rate of 9% which was previously an option during the Pandemic, has now been readjusted for you in the system. Any existing businesses and employees who previously have set this option, will now be using the regular EPF rate of 11%. As long as the pay run's Date Paid is on or after 1 July 2022 then the system will automatically do these calculations for you during pay run.

If the 'additional employer EPF' set at employee level is different to that of business level, then there will be 2 earnings lines in the pay run. The first will be for the business level settings, and the second for the additional employer EPF set in the Employee File > Pay run inclusions page.

• SOCSO Number: The SOCSO number can be found on Borang 8A (No.Kod Majikan). This is an optional field. 
• HRDF Rate: The HRDF levy is a mandatory levy payment collected by the Human Resources Development Fund imposed on employers from manufacturing, mining, quarrying and service industries. The dropdown allows you to select rates of 0.00%, 0.50% and 1.00%. The calculations are as follows:
  • 5 to 9 Malaysian employees are charged 0.5% of the monthly wages for each Malaysian employee.
  • 10 or more Malaysian employees are charged 1% of the monthly wages for each Malaysian employee.

  Please note, as per HRDF regulations, once you reach 10 Malaysian employees you must continue contributing at 1% for the whole calendar year even if your headcount falls to fewer than 10 employees during the year.
  
  

• EIS enabled: Ticked by default. When ticked EIS contribution will be deducted for all employees in the pay run. If the employer does not need to pay EIS for their employees, then untick the 'EIS enabled' checkbox. Employment insurance system (EIS) is a scheme to help employees cope with retrenchment and job loss. All employers in the private sector are required to pay monthly contributions for each of their employees.

• Zakat Number: This is an optional field to be used if making religious donations. 
  
  

Statutory Form settings

The 'Statutory Settings' section consists of the following fields:

• LHDMN Branch: This is the LHDNM or IRBM branch that you will be lodging the form to.
• Serial No;
• Officer card/passport number: Identity card or passport number of the officer
• Officer Name: Name of the officer
• Officer Designation: Job title of the officer
• Officer Email;
• Officer Phone.