Creating an EPF Deduction 

Use

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

Prerequisites

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

 You can configure the Company Rates for EPF in the Implementation Guide of the Payroll Malaysia component. Choose EPF ® Setting Up Company Rate ® Maintain the company rate.

Procedure

  1. Choose Human resources ® Personnel management ® Administration ® Maintain master data.
  2. Enter the Personnel no. of the employee an EPF record is to be created for.
  3. Enter the Infotype Employees' Provident Fund (0196).
  4. Choose Create.
  5. Enter the effective date period for EPF deductions.
  6. Under the Employee Information section:
  1. Maintain the Employee EPF number issued by the EPF Board.
  2. Maintain the EPF Initials also issued by the EPF Board.

    3. These initials is used for the purpose of reporting to the EPF Board.

  3. Check the box, Contributing to EPF, if the employee is currently contributing to EPF.

    4. Due to recent legislation, no one is exempt from contributing to EPF. Therefore, the box should always be flagged.

  4. Check the Old IC Number box if the employee's old IC Number is to be used in printing the EPF reports.
  1. Under the Contribution section:
  1. Choose the EPF contribution rate for employee and employer. Based on the Company Rates table, either the Statutory rate button or the Company rate button is greyed out. If the Statutory rate button is greyed out, then the Company rate entry in the table is greater than the Statutory rate. Otherwise, the Statutory rate is greater than the Company rate.
  2. For the Personal rate, you can enter either a percentage or an amount, or both. If an Amount is entered, then the Percentage can be omitted OR can be less than the Statutory rate. However, the combination of both must be greater than or equal to the Statutory rate.
  1. Save your entries.