Under LHDN requirements, items paid on a monthly basis should be added as Monthly Recurring Items in the PCB calculation. The PCB may be underpaid if monthly-paid items are not correctly added. In PayrollPanda, Monthly Recurring Payroll Items can be added under the Employment Details tab in the employee's profile. Please read this article to understand how the PCB is calculated.
Examples would be: child care allowance, travel/petrol allowance, parking allowance, overtime, paid on a monthly basis.
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.
Also note that certain payroll items which are usually paid on a monthly basis, but for which the amount may vary 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.
This help article was compiled for version 0.13.5 of app.payrollpanda.my