Create a STD Deduction 

Use

The purpose of creating a STD deduction record for an employee is so that payroll can utilize the information to calculate the STD deductions for a period.

Prerequisites

The tax rates need to be maintained prior to carrying out the following procedure.

 You can configure the Tax rates in the Implementation Guide of the Payroll Malaysia component. Choose Tax ® Maintain Tax table.

Procedure

  1. Choose Human resources ® Personnel management ® Administration ® Maintain master data.
  2. Enter the Personnel no. of the employee a STD record is to be created for.
  3. Enter the Infotype Schedular Deduction Tax (0198).
  4. Enter the Subtype Schedular Tax Deduction (01).
  5. Choose Create.
  6. Enter the effective date period for STD deductions.
  7. Under the Employee Information section:
  1. Maintain the Income tax number issued by the Inland Revenue Board (IRB).
  2. Maintain the Income tax office where the employee's tax will be remitted to.
  3. If the employee is contributing tax, check the box Contributing to tax
  4. If the employer is contributing tax on behalf of the employee, check the box Tax paid by empr.

It is invalid for © and (d) to be checked together.
  1. Under the Family Information section:
  1. If the employee's tax-related information is to be derived from Infotype 0021, check the box From family infotype.
  2. Enter all relevant data to suit.
  1. Save your entries.

To verify your entries for all employees, go to the Implementation Guide of the Payroll Malaysia component. Choose Tax ® Generate tax checklist.

This checklist contains a table of tax rates for different income ranges based on the tax category and number of dependents specified in the selection screen.