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Function documentation EA or EC Form for Tax Report (RPCTEAL0_01) 

Use

This function generates the following forms to be filled in by the employer for filing annual income tax returns of the employees:

·  EA Form for a private sector company

·  EC Form for a public sector company

Based on the results generated for the current financial year from the Payroll driver for Malaysia (RPCALCL0), the EA or EC Form is generated.

The EA or EC Form is generated at the end of the year. More than one form will be printed in case the Employer Tax Reference number or the tax office changes. Determination of Tax Splits for tax reporting feature (LTSPT) is used to define the criteria for the splitting of the EA or EC Form.

The EA or EC Form contains information on the personal details of the employee, his or her earnings for the year and the amount deducted and remitted under the Schedular Tax Deduction (STD) scheme.

Integration

Although SAP Script provides font substitution for individual printers to remain global, SAP recommends you to use HPLJ4Si/4SiMX PS laser jet.

Prerequisites

  You must have run the Prepare EA Form report (RPCTSQL0) before running the EA or EC Form. This report generates sequence numbers for employees and stores them in the Serial no Table for EA form - Malaysia database table (T5LSQ). The EA or EC Form reads the database records for the sequence number of an employee.

  You must have set the Determination of Tax Splits for tax reporting feature (LTSPT) for the splits in the EA or EC Form.

  You must have set the Determine Income Tax Return Form (EA or EC) feature (LEAEC) to determine the Income Tax Return Form type for a company.

Features

EA or EC Form

  Sorting of EA or EC Form

On the selection screen, you have an option to define the sort sequence of the EA or EC Form, for easy distribution. You can sort the EA or EC Form on the following fields, in addition to Employee Sequence No, which by default is the last sort order field:

¡  Company Code

¡  Personnel Area

¡  Employee Group

¡  Employee Subgroup

¡  Personnel Subarea

¡  Cost Center

¡  Organizational Unit

¡  Employer Tax Ref No

  Section F

Section F of the EA or EC Form displays arrears of previous years paid in the current year. These arrears may include bonus for previous years and/or retroactive difference amount of the previous years. Since there are only two lines in this Section, the reporting of the amounts is done as follows:

If the EA or EC Form is printed for Year 'Y', then:

¡  The first line displays arrears from the previous year (Y-1). In case of bonus for previous year, make sure that the corresponding wage type has specification P1  for evaluation class 6.

For previous year (Y-1), and under the following columns, the report prints the following information:

§  Total Payment (RM) - Arrears base amount for Employee Provident Fund (EPF) calculation, stored in Arrears EPF Basis wage type (/4A1) with split 01. This wage type has its evaluation class set to D5.

§  EPF Contribution (RM)- Employee EPF contribution amount, stored in Arrears - EE EPF contrib. wage type (/4A3) with split 01. This wage type has it's evaluation class set to D6.

§  Schedular Tax Deductions (STD) (RM) - Employee Schedular Tax Deduction (STD) contribution amount, stored in Arrears - EE STD contrib. wage type (/4A5) with split 01. This wage type has its evaluation class set to D7.

When there is P1 Bonus amount, the report cumulates the P1 Bonus, EPF on P1 Bonus and tax on P1 Bonus with previous year (Y-1) arrears amount, EPF and tax, respectively. The report then prints the values against their respective columns in the EA or EC Form.

¡  The second line displays arrears from years earlier than the previous year (Previous to and including Y-2). In case of bonus for more than one year back, make sure that the corresponding wage type has specification P2 for evaluation class 6.

In case of arrears from more than one previous year (Y-2), the report cumulates the amounts from previous years. The report then prints the cumulated amounts under following columns, respectively:

  Total Payment (RM) - Cumulated values of Arrears EPF Basis wage type (/4A1) with splits greater than 01

  EPF Contribution (RM)- Cumulated values of Arrears - EE EPF contrib. wage type (/4A3) with splits greater than 01

  Schedular Tax Deductions (STD) (RM) - Cumulated values of Arrears - EE STD contrib. wage type (/4A5) with splits greater than 01

When there is P2 Bonus amount, the report cumulates the P2 Bonus amount, EPF on P2 Bonus and tax on P2 Bonus, with arrears amount, EPF and tax from more than one previous year (Y-2), respectively. The report then prints the cumulated values against their respective columns in the EA or EC Form.

  EA or EC Sorting Summary Report

¡  EA Sorting Summary  report is generated along with the EA Form.

¡  EC Sorting Summary  report is generated along with the EC Form.

This is not a legal report. This report displays information pertaining to the sort summary sequence that you have chosen and the number of EA or EC Forms displayed for selected employees.

  EA or EC Summary Report

This report has the following features:

¡  Displays a list of total earnings and tax paid by all the employees for whom the EA report is run.

¡  A separate EA or EC Summary Form is printed for each Employer Tax Reference Number.

¡  List of employees printed is sorted first on employee serial number and then on employee name.

  EA or EC Form breakdown list

This list contains details of the monthly earnings, deductions and tax paid by the employee. A new form is printed for each employee. This is not a legal report. This report displays the following details of an employee:

¡  Company Code

¡  Name

¡  Employee Number

¡  Personnel Area and Personnel Subarea

¡  Cost Center or Organizational Unit

¡  Employee Group and Employee Subgroup

¡  Monthly break up of all the earnings, deductions and tax that are reported in the EA or EC Form. The report displays the BIK earnings separately for every break up.

Note

This report does not take into consideration the splits in the EA or EC Form.

  EA or EC Form in background

To print the EA or EC Form in the background, you must select properties of the spool request and time of the job. A spool is created for the following reports:

 

EA

EC

EA Form

EC Form

EA Sort Summary

EC Sort Summary

EA Summary

EC Summary

EA Breakdown list

EC Breakdown list

 

Use transaction SP01 to view the spool list.

  EA or EC Form with customer layout

EA Form and EA Summary report or EC Form and EC Summary report can be displayed on a customer defined layout. To do so, you must specify the names on the selection screen of the report.

Features Specific to EA Form

  If you are maintaining the position text of an employee in a table other than Position Texts table (T528T), then you can implement the BAdI, HRPAYMY_EAFORM, to read the same from the specific table. This report calls the BAdI and prints the position text returned by the BAdI on the EA Form.

You can configure this BAdI in the IMG under Payroll for Malaysia ® Tax Forms ® EA or EC Form ® BAdI: Determine Description for Position of an Employee.

  Benefits in Kind (BIK) earnings

BIK earnings are reported in section B and C of the EA Form. These earnings are defined by the specification defined for Evaluation Class 06 for the wage type and the income codes maintained in Code Number for BIK (Malaysia) table view (V_T5LBA). These codes are defaulted as the possible BIK contributions in BIK (Tax) Infotype (0547). In the EA form, the mapping of the different sections is as follows:

Note 

I represents EA Form mapping to specification of Evaluation Class 06

II represents EA Form mapping to Code number of BIK item in BIK (Tax) infotype (0547) (in Code Number for BIK (Malaysia) table view (V_T5LBA))

 

Section

Description of EA Form

I

II

B 001

Gross salary, wages or leave pay (including overtime pay)

10

-

B 101

Fee (Including director's fees), commision or bonus

11

-

B 102

Gross Tips perquisite, other gratuitous receipts or allowances

12

120

 

Income Tax paid by Employer on behalf of Employee

13

121

B 103

Value of motor car and fuel

20

130

 

Value of driver

21

131

B 104

Light, water, telephone and other utilities

22

140

B 105

Semi-furnished with furniture or air conditioners or curtains

23+24+25+26

150

 

Fully furnished with kitchen equipment, crockery or utensils or appliances

27

151

 

Individual items: Furniture and fittings

28

152

 

Kitchen equipments

29

153

 

Entertainment and recreation

2A

154

 

Mobile telephone

2B

155

B 106

Household servants and gardeners

2C

160

 

Travel benefits

2E

161

 

Others (for example, food and clothing)

2D

162

B 003

Value of accomodation

30

003

B 107

Refund from unapproved provident/pension funds

40

171

 

Compensation of loss of office

50

172

C 007

Pension

60

007

C 010

Annuities or other periodical payments

70

110

 

Note

When EA Form splits in a year, the BIK earnings of the employee are reported in the last split of EA Form, for the given year. If multiple records of BIK (Tax) infotype (0547) exists for a year, payments from all the records are added and reported in the last split of EA form for that year.

Features Specific to EC Form

You can configure calculation methods for employment income, benefits and living accommodation details of an employee in the BAdI, HRPAYMY_EAFORM. This report calls this BAdI and prints the values calculated by the BAdI in Section B of the EC form.

You can configure this BAdI in the IMG under Payroll for Malaysia ® Tax Forms ® EA or EC Form ® BAdI: Configure Calculation Method for Section B of EC Form.

Activities

  1.  From the SAP Easy Access menu, choose Human Resources ® Payroll ® Asia/Pacific ® Malaysia ® Subs. activities ® Annual ® Legal reporting ® Taxes ® EA or EC form.

The EA or EC Form selection screen appears.

  2.  Enter relevant details in the following sections:

  a.  User Parameters section

  i.  Employer's Reference No identifies the employer for the payment of employee and employer tax contributions to the tax office. Each employer has a unique number. This number identifies the employer when he or she makes the tax payments.

  ii.  Year of EA/ EC Tax Assessment is the year for which you want to run the report.

  iii.  Employee Residential Address is the subtype of the Address infotype (0006), which will be used to print employee residential address in EA or EC Form.

  iv.  Spouse Residential Address is the subtype of the Address Infotype (0006), which will be used to print spouse residential address in EA or EC Form.

  v.  Accommodation Addressis the subtype of the Address Infotype (0006), which will be used to print employee accommodation address in EA or EC Form.

  vi.  Bonus for periodfield can be used to print the period of bonus to be reported in EA or EC Form. The period specified here gets printed in EA or EC Form.

  b.  Output Format section

  i.  Test run without printing - If you select this indicator, then depending upon the Determine Income Tax Return Form (EA or EC) feature (LEAEC) configuration, only:

·  EA Sorting Summaryreport gets printed when you choose Print EA Form on EA (Tax) Report screen.

·  EC Sorting Summaryreport gets printed when you choose Print EC Form on EC (Tax) Report screen.

This can be used as a test run.

  ii.  You can generate the report in the Standard SAP Layout, or your own customized layout.

  iii.  Include retroactive payments in Gross Salary - If you select this indicator, the all amounts that were paid retroactively, get printed in Gross Salary section of the form. For details, refer to Note 812666.

  c.  Additional Data section

You may specify a sequence to sort the EA or EC Form using the Sort Sequence option.

  3.  Execute the report.

The system displays the following information on EA or EC (Tax) Report screen:

  Company Code

  Employer Reference Number

  Employee Sequence Number

  Employee Personnel Number

  Employee Income Tax Number

  Tax Office

  Employee IC Number

  Employee Name

  4.  You can carry out the following actions from EA or EC (Tax) Report screen for:

  EA Form

§  Print Form prints EA Form and EA Sort Summary report.

§  Print Summary Reportprints EA Summary report only.

§  Print EA and Summaryprints EA Form, EA Sort Summary and EA Summary reports.

§  EA with BreakDown Listprints EA Form, EA Sort Summary, EA Summary and EA Breakdown list reports.

  EC Form

§  Print Form prints EC Form and EC Sort Summary report.

§  Print Summary Report prints EC Summary report only.

§  Print EC and Summary prints EC Form, EC Sort Summary and EC Summary reports.

§  EC with BreakDown List prints EC Form, EC Sort Summary, EC Summary and EC Breakdown list reports.

Example

EA or EC Form split

Consider the following employee in year 2002:

  01.01.2002 to 30.06.2002 - Employed in Company A

  01.07.2002 to 31.12.2002 - Employed in Company B

  BIK (Tax) Infotype (0547) for Malaysia, Value of Accomodation is as follows:

  01.01.2002 to 30.04.2002 - Amount is RM 200

  01.05.2002 to 31.08.2002 - Amount is RM 350

  01.09.2002 to 31.12.2002 - Amount is RM 500

Based on the return value of Determination of Tax Splits for tax reporting feature (LTSPT), EA or EC Form will be printed. If there is a split in the EA or EC Form, BIK earnings for the entire year are reported in the last split only. In this case, the last split of the EA or EC Form will display RM 1050 (200+350+500) as Value of Accommodation.

See also:

Generating EA or EC Form