Updating employee statutory details

To update an employee's tax file declaration you need to open the employee file, then click the 'Statutory details' tab on the left menu.

Important information on this page includes:

• ITN / TRN: (required). This field is immediately validated and you will only be able to proceed if the number is correct. The format is and for the TRN (maximum 11 numeric characters) as format XX XXXXXXXXXXX
• Employment Type: (required). Select between part time or full time;
• Worker Status: The worker status allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate;
• Residence status: The residence status is a drop down field and allows you to select 'resident' or 'non resident'. If you fall into any of these categories, you will be a resident, if not, you will be a non-resident:
  1. The individual is in Malaysia for 182 days or more in a basis year.
  2. The individual is in Malaysia for less than 182 days or more consecutively throughout which he was in Malaysia either in the year preceding or immediately following that year of assessment. Temporary absences allowed are for:
     1. absences connected with that individual's service in Malaysia, such as attending conferences or seminars or study abroad;
     2. absences owing to ill-health involving the individual or a member of his immediate faimly (i.e. parents, spouse, children); and
     3. absence in respect of social visits not exceeding 14 days in the aggregate (social visits include any form of vacation outside Malaysia besides vacation to home country).
  3. The individual is in Malaysia for 90 days (the days need not be consecutive days) or more in a basis year, and in each of any 3 out of 4 years of assessment immediately preceding that particular year of assessment he was either considered resident, or in Malaysia for a period or periods amounting in all to 90 days or more.
  4. The individual is not in Malaysia during the basis year, or they are in Malaysia for less than 90 days, but:
     1. had been resident for the immediately following basis year; and
     2. had been resident for the 3 immediately preceding basis years
  This setting will affect the employees tax calculations. The following residence status/types are available:
  
  • Non resident > Non Malaysian: In this scenario, the employee's passport number and passport issuing country are required fields. The SSFW (Social Security Foreign Worker number) is also required;
  • Non resident > Malaysian: In this scenario, the employee's identity card number is a required field.
  • Resident > Malaysian: In this scenario, the employee's identity card number is a required field. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate;
  • Resident > Non Malaysian: In this scenario, the employee's passport number and passport issuing country are required fields. The SSFW (Social Security Foreign Worker number) is also required. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate;
  • Resident > Permanent resident of Malaysia: In this scenario, the employee's identity card number is a required field. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate;
• Nationality: Mandatory field;

• Religion: This data will be populated on relevant reports;
• Ethnicity/Race: This data will be populated on relevant reports;
• Married status: Mandatory field, will be used in reporting and deductions; 
• Dependant children: Optional field, will be used in reporting and deductions;
• EPF Number: This field is optional for reporting purposes;
• EPF member type: This field is conditional and will only display if the residence type is 'Non Malaysian'. EPF member type options are Member before Aug 1998 and Member after Aug 1998. 
• EPF rate: This field has since been set to view only starting 1 July 2022 when the reduced rate of 9% was readjusted back to the regular rate.
  As reference, the following are the different 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. This currently is using the EPF rate of 11%  starting 1 July 2022.
  • EPF rates of 9% - Setting no longer available. The reduced rate option was given during the pandemic till Jun 2022 only. 
  • EPF rates of 11% - Setting follows the regular EPF rate and was an option given during Pandemic for those who wanted to still continue contributing the standard EPF rate versus the reduced rate.

Note: For EPF rate of 11%, Businesses who have opted to contribute the standard rate instead of the reduced rate during the Pandemic, Borang KWSP 17A (Khas 2022) 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. Refer to EPF contribution rates for more information.

• SOCSO: You are able to select the following:
  • Employment Injury Scheme;
  • Employment Injury and Invalidity Scheme

For more information regarding SOCSO see here.

• Social Security Foreign Worker Number (SSFW No): The SSFW (Social Security Foreign Worker number) is a required field if the employee has the following settings:
  • Resident > Non Malaysian
  • Non resident > Non Malaysian
• EIS Exempt: This setting is only relevant if the business has been enabled for EIS contributions. This is done via the 'Payroll settings' > 'Statutory settings' page. 
  
  For more information regarding EIS see here.
  
  
• PCB is borne by the employer? When PCB is borne by the employer, the employee will have no PCB deducted from their gross pay. PCB borne by the employer is a taxable perquisite to the employee and the total perquisite is added to the taxable income of the employee in the following tax year. This means that the employee only has their usual EPF and SOCSO mandatory deductions deducted from their gross salary. By ticking this, the PCB deduction will not affect the employee's net pay.
• Click Save when finished.

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