When an employee receives additional remuneration payment, such as a bonus, admin needs to ensure the employer's EPF contribution for the payment is calculated in accordance with KWSP.
For example, for an employee who is Malaysian citizen, below 60 years old and receives monthly wages of RM5,000.00 or below; upon receiving a bonus renders the wages received for that month to exceed RM5,000.00; the employer’s EPF contribution will be calculated at the rate of 13%.
In addition to EPF, admin also need to ensure PCB formula for Additional Remuneration is applied. To ensure correct tax and EPF calculation for an additional remuneration payment, admin can follow below steps to configure a pay category and then add the pay category in pay run.
Getting started
- Log into your payroll platform.
- Click on Business in the left-hand side menu.
- Click on Payroll Settings.
- Under the Pay Run Settings subheading, click on Pay Categories.
- Tick the Additional Remuneration option.
- Click Save.
Important
If a pay category is indicated as Additional Remuneration payment and the pay category is included in a pay run, it will trigger additional remuneration calculation for that earning in the pay run.
Add additional remuneration to a pay run
There are several ways to add additional remuneration into a pay run.
- Log into your payroll platform.
- Click on Pay Run in the left-hand side menu.
- Click on the Actions button.
- Click on Add Earnings.
- In the Other Earnings drop-down menu, select your additional remuneration category type.
- Add the following:
- Units.
- Rate.
- Click Save.
- Log into your payroll platform.
- Click on Pay Run in the left-hand side menu.
- Click on the Pay Run Actions button.
- Click on Import Pay Run.
- Select Add to.
- Select the file you wish to upload.
- Click Confirm upload.
- Check the employee's Earnings line and ensure that the additional remuneration line has been added.
Helpful Hint
See this support article for how to add additional remuneration from an imported pay run.
- Log into your payroll platform.
- Click on Employee in the left-hand side menu.
- Select the employee for which you want to add additional remuneration.
- Click on Pay Run Inclusions.
- On the Additional Remuneration option, click on Add.
- Add the following details:
- Pay category
- Location
- Earnings per pay run
- Rate
- Notes
- This earnings line should be included in
- Click Save.
Helpful Hint
See this support article for how to add additional remuneration from a pay run inclusion.
- Log into your payroll platform.
- Click on Employee in the left-hand side menu.
- Select the employee for which you want to add additional remuneration.
- Click on Pay Rates in the left-hand side menu.
- Select the tick box on the right-hand side of the screen that corresponds with the additional remuneration type that you wish to add.
- Once you add the employee to the pay run, the selected additional remuneration line will appear in the Earnings section.
Helpful Hint
See this support article on how to add additional remuneration via an employee's pay rate.
If you have any questions or feedback, please let us know via support@employmenthero.com
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