[MY] Running Your First Payroll [Step 3 of 4]

Modified on Wed, 03 Apr 2024 at 09:25 AM


A timely paid employee is a happy employee. Let's quickly setup your company payroll info to ensure timely and accurate processing of your employee's payroll.

This setup is important to ensure that the generated
Bank Giro, EPF, MTD, EIS and Socso files for submission are accurate.

There are 2 parts to this guide:
Part 1: Company Payroll Info
Part 2: Adding and Assigning of Pay Items

Part 1: Company Payroll Info

Tax Details

• First, scroll down to the Company Payroll Info section and click the EDIT button.

  • Next, fill in all the mandatory details (if applicable):

‎‎‏‏‎  ‣ E Number (Employer tax number)
‎‎‏‏‎  ‣ C Number (Company tax number)
‣ EPF Reference Number
‎‎‏‏‎  ‣ Socso Reference Number

  • What is your Monthly Tax Deduction (MTD) calculation method?
    ‎‎‏‏ ‣ Computerised Calculation [Recommended]
    ‣ Non Computerised Calculation.


    [NOTE: Computerised Calculation follows LHDN official calculator while Non Computerised Calculation follows the LHDN Table. While both methods are accepted, Non Computerised Calculation typically reflects higher contributions due to the rounding.]

  • Contribute to HRDF?


Bank Detail

  • Select your bank *

  • Branch code

  • Bank account number *

  • Finally, indicate when you'll start using HReasily to run your payroll

  • Click SAVE when you are done. 

Part 2: Adding and Assigning of Pay Items

Pay items are the components that make up a person’s pay. Example: commissions, bonus, various claims and more. 

Part 2a: Creating New Pay Items

If the default pay item isn't suffice, you can create custom ones by selecting the CREATE button.


This will prompt a pop up window as seen below.

Go ahead and fill up all the necessary information:

  • Name*

  • Category*
    ‣ Addition: Adds to an employee's Basic Salary
    (Example: Bonus, Commission, Claims)
    ‣ Deduction: Reduces from an employee's Basic Salary
    (Example: Unpaid Leave)

  • EA Category*
    ‣ Compensation for loss of employment
    ‣ Fees (including director fees), commissions or bonuses
    ‣ Gross salary, wages or leave pay (including overtime pay)
    ‣ Gross tips, perquisites, awards/rewards or other allowances
    ‣ Income tax borne by the employer in respect of his employee
    ‣ Not Applicable
    ‣ Refund from unapproved Pension/Provident Fund, Scheme Or Society

  • Is this pay item Tax applicable?

  • Remuneration Type*
    ‣ Additional
    ‣ Normal
    [Learn the
    difference between Normal and Additional remuneration]

  • Is this pay item Socso applicable? [What is 

  • Is this pay item EPF applicable?

  • Is this pay item EIS applicable?

  • Is this pay item HRDF applicable?

  • Amount Type:* Click Here to Learn More
    ‣ Fixed: Amount is the same every month
    ◦ Pay Item Amount [for Fixed]
    ‣ Variable: Amount varies from month to month
    [NOTE: Pay item amounts can still be adjusted when running your payroll. If you require a pay item to be both fixed and variable, you can create 2 separate pay items or simply amend the amounts when running your payroll.]
    ◦ Variable Amount Type [for Variable]
    * Ad-Hoc Amount
    * Percentage (%) of hourly rate
    * Amount based on defined amount
                              * Amount based on defined hourly rate

Once all fields have been filled, click on SAVE

Part 2b: Assigning Pay Items to Employees

Now that you've created all the necessary Pay Items, it's time to have them assigned to the respective employees of which it applies to. 

To do so, click on the ACTIONS button found beside the pay item 

select assign to multiple employees.

From here, tick of the employees which this pay item applies to and hit SAVE

Additional Help:

________________________________

With that, you've completed the company payroll setup and are now ready to run your first payroll with HReasily!



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