This guide will assist on how to create a new deduction type and assign to an employee profile for payroll processing.
To create new deduction;
1. Go to Tools > General Maintenance > Deduction.
2. Click Add New located at the top right corner of the page.
3. Under the Setup section, enter the Deduction Code and Description.
You may select Assign to Employee to add the deduction as a fixed deduction in the employee’s profile for payroll processing.
This deduction will then appear under the Addition & Deduction section in the employee profile.
4. (Optional) Under Settings section;
a. Define Start Period and End Period: If the deduction is period based, set the start and end period accordingly.
In this example, we set January 2025 as Start Period, meaning that the deduction will be applied starting on January 2025.
b. Tick the relevant statutory contribution checkboxes (e.g., EPF, SOCSO & EIS, HRDF, Tax).
If the allowance is taxable, tick Pay Tax and select the corresponding EA Form field where the deduction should appear.
5.(Optional) Configure Formula or Fixed Amount.
You may create a custom formula based on your company’s policy to determine the deduction calculation.
If the deduction is a fixed amount, enter the value directly in the Formula box (e.g., 50)
6. Once all setup details are completed, click Save at the top-right corner of the page to save the new deduction.
7. The deduction amount will be reflected in the payroll process starting from January 2025 onwards.
By HanYang 251011, Azirah 251023