This guide will assist you in setting up various new types of allowance in your company by providing a checklist of items required for the creation of a new allowance.

Checklist of items / information required when it comes to setting up allowances in a company:

i) Code

- A code used to identify the type of allowance. Usually in a form of short form, example: code for 'Meal Allowance' could be 'MEAL' and code for 'Parking Allowance' could be 'PARK'.

ii) Description 

- A description is a full description of the allowance, usually used to describe the allowance. Example; Description for 'MEAL' could be 'Meal Allowance' and description for 'PARK' could be 'Parking Allowance'.

iii) Start Period & End Period

- Used to determine the validity of the allowance

iv) Statutory (Pay EPF, SOCSO & EIS, Tax, HRDF)

- Used to define whether that specific type of allowance is subjected to the statutory. 

v) Tax Exempted Rule 

- To define whether there are any tax exemption on that specific type of allowance. 

Note: For Tax Exempted Rule to work, you are required to tick Pay Tax on that specific type of allowance else it will not capture.

vii) EA Form Selection Field 

- To define where the allowance should appear in the EA form. 

Note: For allowance(s) to appear in the EA form, you are required to tick Pay Tax on that specific type of allowance, else it will not capture.

END OF GUIDE