Processing Schedular Tax Deduction 

Purpose

The payroll portion of tax computation involves a function LTAX (Process STD Tax). This function retrieves STD information for the employee using infotypes Schedular Deduction Tax (0198) and Family/Related Person (0021), and calculates the tax based on normal and other earnings of the employee.

Prerequisites

The following actions must be performed:

·        You must have created Schedular Deduction Tax infotype (0198) and Family/Related Person infotype (0021) must be entered.

·        Set up the LTAXD feature using the Implementation Guide of the Payroll Malaysia component. Choose Tax ® Schedular Tax Deduction ® Determine tax category.

·        Set up the tax payee details and employer tax reference number using the Implementation Guide of the Payroll Malaysia component. Choose Tax ® Setting Tax Payee and Employer Reference Number.

 Enter tax-related payroll schemas and rules before running payroll in the Implementation Guide of the Payroll Malaysia component. Choose Tax ® Maintaining Tax-Related Payroll Schemas and Rules.

Process Flow

The following are the processing steps for STD:

·        Data in infotype Schedular Deduction Tax (0198) is read.

·        The values for total tax earnings are obtained i.e. normal and other earnings.

·        The statutory tax rates table is read.

·        The various deductions based on constants stored in the statutory constants table are computed.

·        The tax structure of the payroll results is filled.

Result

The monthly tax deduction is calculated.

·        If a monthly payroll was run, CP39 is printed.

·        If an annual payroll was run, the following are printed.

¡        EA Form

¡        CP159

¡        PCB 2(II)

¡        Summary EA Form