The Actpay Salary Calculator software for Malaysian small businesses simplifies and speeds up monthly payroll calculations. This salary calculator includes all the calculation functions needed, including an income tax calculator to produce the monthly payslip fast and easy.
The payslip calculation requires the input of basic salary, allowances, benefit in kind, overtime and deductions as the raw data. This data is used to automatically generate the final salary and all government Statutory deductions including EPF, SOCSO, PCB and EIS. It also has the added benefit of producing the Annual EA Form and E Form at a click of a button.
Salary Calculator : Simple Monthly 3 step procedure.
- Initialise – Set the default and recurring monthly values.
- Edit/Add – Enter variable allowances like commission and overtime.
- Click Calculate Payslip to complete payroll calculations.
Outlined below is a detailed overview of the monthly payroll process using Actpay Payroll Software System.
Government required Statutory calculations.
- EPF – Employees Provident Fund (KWSP – Kumpulan Wang Simpanan Pekerja)
- SOCSO – Social Security Organization ( PERKESO – Pertubuhan Keselamatan Sosial)
- EIS – Employment Insurance System (SIP – Sistem Insurans Pekerjaan)
- MTD – Monthly Tax Deduction (PCB – Potongan Cukai Bulanan)
The basic input values required to calculate the gross salary are Allowances, Deductions and Overtime. This gross salary is then used to calculate the final Net Pay.
The Actpay Payroll Software can handle up to 15 custom allowances. Each of these allowances can be customised to handle specific Statutory deductions. The allowances can be programmed to calculate or ignore EPF, SOCSO, PCB and EIS individually. Although 90% of allowances are subject to EPF, SOCSO and PCB, there are quite a number of allowances that do not attract all or some of these Statutory deductions. In Actpay these allowances can be set independently to achieve the required results.
Benefit in Kind
The income tax calculator function that generates the PCB values requires the details of income paid in the payslip as well as income and benefits not paid together with the payslip. These external items fall into the category of Benefit in Kind. Examples of Benefit in Kind include company car, driver and house rent. This income in kind will be added to the basic salary and allowances to get the total income subject to PCB income tax calculations.
As a payroll calculator, Actpay also allows the option to have 10 custom deductions and 2 fixed deductions. The 2 fixed deductions are loan repayment and Cp38. The other special deduction is Zakat that directly affects PCB tax calculations.
The overtime hours calculator is used to calculate based on the overtime rates for work done after normal working hours, rest days and public holidays. The legal overtime rates are 1.5, 2.0 and 3.0, for normal days, rest days and public holidays respectively. These rates apply to all staff that fall within the definition into the Malaysian Employment Act. These rates are legally binding all staff with basic salary of up to RM2,000 and also for certain specific categories of staff. For staff with a higher salary, the hourly rates are contractual. For contractual hourly rates, the 1.0 rates can be used.
Easy 3 step Monthly Payroll procedure
The monthly payroll procedure can be completed in minutes with just 3 simple steps.
Finish your payroll fast and easy without any complex procedures. No need to move from screen to screen. Complete all your calculations in one screen. As simple as 123.
Following is a summary of the monthly payroll procedure.
- Initialize Month Values
This is done at the beginning of each month. This procedure will update the current month values with basic pay and any recurring allowances and deductions. This all that is needed to begin calculations.
- Edit and make changes to overtime and allowances.
Now go to the individual staff and Click “Edit” to make the necessary changes. This is to input values that change each month like overtime and commission. If there are no changes, you do not have to add any information. The initialize is enough. If there are fixed monthly allowances for the staff, this information will be automatically updated in the Initialize month procedure.
- Calculate current month.
Once the necessary values have been input, Click “Calc Full Month”. This will automatically calculate Overtime, EPF, SOCSO and PCB. Just one single Click for the complete payroll calculations.
Once all the staff have been checked and editied, Click “Update Full Month” in the report screen. Run this once to make sure all the staff salary have been calculated just in case you left out any staff. The salary calculations are now complete. You can now run Update YTD to lock and update YTD information for the month.
Monthly Salary Calculation Procedure
The monthly total wages and deductions are separated into income subject to EPF and income not subject to EPF. The EPF for employee and employer is calculated based on the gross income subject to EPF. EPF can be based on the default government values or set to custom rates where required.
Similarly income subject to SOCSO, EIS and PCB are calculated based on the allowance and deduction settings. The Net pay is then calculated after all these Statutory deductions are deducted from Gross income.
Using the Actpay salary calculator is as simple as entering the income and deduction values and clicking Calculate. All calculations are automatic. No need to refer to tables or the internet for the right values. Correct calculations every time.
Watch the following video to see an example of a monthly payroll run. This example simulates the typical monthly payroll procedure with 20 sample staff.
Other Payroll Calculations
There are some other less used payroll calculations like unpaid leave, bonus and leave. These calculations are not done often, but are still a vital component of monthly payroll processing. These calculations are also completely automated for error free payroll management. This easy to use salary calculator makes monthly payroll processing easy and accurate, saving time and a stress free operation.
Monthly Payroll Reports and Procedures
The calculations are only one part of the whole monthly salary process. The other part is the reporting functions.
Reports can be divided into 7 categories.
- General reports to get total monthly cost for the company.
- Statutory government reports.
- File exports to be uploaded to pay statutory government deductions.
- Annual EA and E form related report.
- General reports to get greater details on staff salaries.
- Bank reports to upload salary and government payments through the bank.
All these reports are available at a click of a button, saving countless hours of work. Also, all these reports can be exported as Excel and PDF files for further processing.
1 General Monthly Payroll Reports
The following is a sample of the Detailed Monthly report on Employee Salary. This report provides the detailed information on each individual staff as well as the company totals.
Detailed monthly payslip.
3. Statutory government reports.
Printed reports for EPF, SOCSO, PCB and EIS.
4. File exports to be uploaded to pay statutory government deductions.
The payroll software generates the required text files for upload to EPF, SOCSO, PCB and EIS.
5.Annual EA and E form related report.
Print the end of year EA form and E-Form (CP.8D)
6. General payroll reports to get greater details on staff salaries.
Miscellaneous reports useful for general payroll operations.
7. Bank reports to upload salary and government payments through the bank.
The Actpay Payroll Software can generate various bank reports for upload to the banks. These reports can be will directly deduct and pay staff through the banks. The reports available vary from bank to bank.
More sample reports can be found here : http://actpayroll.com/standard-reports-in-actpay-payroll/
Salary Calculator Summary
In summary it can be seen that using the Actpay Payroll Software for monthly salary calculations will save the company a considerable amount of time and energy for this difficult monthly process. Plus there is the added bonus of knowing that the payroll calculations are 100% correct.
More detailed information can be found at : http://actpayroll.com/payroll-software-malaysia-system-features/