This guide will assist you in setting up various new types of deductions in your company by providing a checklist of items required for the creation of the deduction.
Checklist of items / information required when it comes to setting up deductions in a company:
i) Code
- A code used to identify the type of deduction. Usually in a form of short form, example: code for 'Lateness Deduction' could be 'LATE' and code for 'Parking Deduction' could be 'PARK'.
ii) Description
- A description is a full description of the deduction, usually used to describe the deduction. Example; Description for 'LATE' could be 'Lateness Deduction' and description for 'PARK' could be 'Parking Deduction'.
iii) Start Period & End Period
- Used to determine the validity of the deduction.
iv) Statutory (Pay EPF, SOCSO & EIS, Tax, HRDF)
- Used to define whether that specific type of deduction is subjected to the statutory.
v) EA Form Selection Field
- To define where the deduction should appear in the EA form.
Note: For deduction(s) to appear in the EA form, you are required to tick Pay Tax on that specific type of deduction, else it will not capture.
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