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When do I select certain payroll items as recurring?

Under LHDN requirements, items such as allowances paid on a monthly basis should be added as Monthly Recurring Items in the PCB calculation. In PayrollPanda, monthly-paid payroll items should be added as Monthly Recurring Payroll Items under the Employment Details tab in the employee's profile. The PCB may be underpaid if monthly-paid items are not correctly added. Please read this article to understand how the PCB is calculated.

Also note that certain payroll items which are paid on a monthly basis, but for which the amount varies from month to month (such as overtime, commission or incentives), should still be added as recurring in the employee's profile but with the amount set to 0. When you run payroll, you can enter the relevant figures for each item at Step 1 of payroll every month or leave them as 0 if no payout is made for that particular payroll month. LHDN consider overtime as a recurring item even if not paid every month.

IMPORTANT: Do not enter one-off payroll items (eg, annual bonus) as monthly recurring! For one-off payroll items, kindly refer to point 2. Additional Payroll Items in this help article.

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This help article was compiled for version 0.13.5 of app.payrollpanda.my

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