SUMMARY

This program shows how to prepare the payroll using manual methods so that one understands how the payroll is actually computed so that the participant could explain and demonstrate to fellow employees how their pay is calculated.

Programme delivery: This programme is presented by a trainer with real-work-experience in HR Management and payroll administration in multiple organisations  

PROGRAMME  DESCRIPTION  

Introduction

The main reason why employees work is because of wages. Employees expect employers to pay wages according to the agreed terms in the contract of employment and the laws

Employment Laws (Employment Act 1955, Labour Ordinance Sabah 2004, Sarawak 2005), EPF, SOCSO, EIS and Income Tax laws dictate how wages should be calculated and what deductions and contributions should be made

The Main Challenge for Payroll Specialists 

Many, if not most, organisations use payroll software to compute payroll. The challenge is how to explain to employees how the software processes their pay. And also why for some months the PCB is higher than other months

How Does this Workshop Help?

This programme shows you how to compute your overtime calculations & PCB calculations using manual formulas and EPF, SOCSO & EIS tables, so you will understand the system better and also be able to explain to other employees how the payroll software works; step-by-step.

BRING YOUR CALCULATORS!

As this workshop involves a lot of practical calculations, it will be useful if you bring your calculators

OBJECTIVES  

The participants will learn how to:

• Calculate pay for work done during normal hours and on overtime during normal work days, public holidays and rest days; Calculate pay for incomplete month due to resignations, dismissals, absence or unpaid leave
• Provide benefits under the employment laws: Annual leave, Sick Leave, Maternity Leave, Paternity Leave, Retrenchment; and calculate their values. 
• Calculate pay and benefits for PART-TIMERS
• Compute EPF, SOCSO, EIS and Income Tax (MTD / PCB) deductions using appropriate tables and configurations Compute Income tax including value of benefits such as VOLA and value of perks, after relief and rebates 
• Prepare the payroll report as per the latest laws of Malaysia; and Prepare the EA Form

Course Outline – Day 1

9.00am

(1) Introduction

• Difference between wages and salary
• Contracts of Employment vs Employment Laws
• Daily rated, monthly rated and piece rated employee
• Who is an employee?

(2) OT Calculations

• Formula for calculation of Ordinary Rate of Pay (ORP) and Hourly Rate of Pay (HRP)
• OT rates on week-days, Rest Days and PH  
• When does OT start?
• Limit on OT hours

10.30am – Break

10.45am

(3) Wages Administration & Incomplete Month Calculations

• Minimum wages  
• Formula for calculation of salary for incomplete month
• Minimum and maximum amount of salary advance and loans
• Authorised and unauthorised deductions; and its limit

(4) Resignations and Dismissals 

• Notice period
• Calculation of salary in lieu of notice period
• Calculation for last day of service
• Short notice  

(5) Leave Benefits & Encashment 

• Sick Leave
• Hospitalisation Leave
• Annual Leave
• Maternity Leave
• Paternity Leave   

6) Retrenchment

• Who is eligible for retrenchment benefits?
• Notice period and compensation for retrenchment
• Calculation for payment of retrenchment benefits
• Payment date of retrenchment benefits   

1.00pm – Lunch break

2.00pm (afternoon break at 3.30pm-3.45pm)

7) Part-time Employees: Benefits

• Who are the part-time employees protected by EA?
• Overtime calculations
• Benefits  

8) SOCSO, EPF & EIS Deductions & Contributions

• Who is eligible for deductions and contributions?
• What types of income are subject to SOCSO, EPF and EIS contributions?  
• Rate of deductions for different classes of employees 

3.00pm

Case Study

5.00pm - End of Day 1

Course Outline – Day 2

9.00am (morning break at 10.30am-10.45am)

9) Income Tax: Monthly Deductions (MTD / PCB)

• Definition of wages for income tax deductions
• Normal vs additional remuneration
• Reliefs, Rebates and Exemptions from tax
• Using the formula method to compute MTD/PCB
• Compulsory and optional deductions TP1 & TP3 forms

10) Income Tax: Benefits-in-kind and Perks

• Calculating value of benefits, perks, VOLA
• Formula and prescribed value methods of determining taxable values
• ESOS
• Preparing the EA form

1.00pm – Lunch break

2.00pm (afternoon break at 3.30pm-3.45pm)

DOCUMENTATION

4.00pm - EA Form

5.00pm – End of Training