Use this checklist when creating allowance items in Payroll > Employee Maintenance. Whether you are creating your first employee or adding new employees to an existing company, ensuring all required information is maintained correctly will help ensure accurate payroll processing, statutory compliance, leave entitlement calculations, and reporting.
Checklist for Employee Setup:
Code
A unique identifier assigned to each employee.
If you do not have an employee numbering system, leave the code as NEW and the system will automatically generate the next available employee code.
Employee Details
Maintain the employee's personal details.
Identity Card / Passport – Maintain the employee's identification details.
Local employees – Enter the Identity Card (IC) Number.
Foreign employees – Enable Is Foreigner and enter the Passport Number.
Marital Status – Select the employee's marital status. This is a mandatory field and is used in PCB (Monthly Tax Deduction) calculations, as different marital statuses may qualify for different tax reliefs and rebates.
Spouse Information (If any)
Maintain the employee's spouse information, including:
Whether the spouse is working
Whether the spouse is disabled
Number of tax-deductible children
Child relief entitlement
This information is used in tax calculations and statutory reporting.
Employment Details
Basic Rate – Enter the employee's basic salary or wage rate. The basic rate should exclude all allowances, overtime, commissions, bonuses, and deductions.
Department – Assign the employee to the appropriate department. Department information is used for:
Report filtering
Payroll processing
Leave management
Announcements
Employee grouping
Wages Type – Select how the employee's salary is calculated.
Monthly
Daily
Hourly
Piece Rate
Payment By – Select the employee's payment method.
Bank Transfer
Cash
Cheque
Pay Frequency – Select how often the employee is paid.
Monthly
Fortnightly
Join Date – Enter the employee's date of joining. The join date affects:
Leave entitlement calculations
Payroll processing
Service year calculations
Employee reporting
Employee Status – Select the employee's employment status.
Permanent
Contract
Part Time
Intern
Management
Others
Retirement Date – Automatically calculated based on the retirement age maintained in the Company Profile.
End of Contract – Applicable for contract employees.
ℹ️ Note: Employee Status and Retirement Date information may be required for government reporting such as CP8D.
Statutory Information
Maintain the employee's statutory information according to government requirements.
EPF Table – Defines the EPF contribution rate applicable to both employer and employee contributions.
SOCSO Category – Defines the SOCSO contribution category and rates applicable to the employee.
Tax Category / Tax Status – Determines how PCB (Monthly Tax Deduction) is calculated for the employee.
HRDF – Determines whether the employee's wages are included in HRDF levy calculations.
ℹ️ Note: HRDF contributions are borne by the employer and are not deducted from the employee's salary.
Statutory Account Numbers – Maintain the following statutory account numbers where applicable:
EPF Number
SOCSO Number
Tax Number
Additions & Deductions
Maintain recurring allowances (additions) and deductions payroll items that should be applied automatically during payroll processing.
Bank Accounts
If the employee is paid via Bank Transfer, maintain the employee's bank account information.