This program shows how to prepare the payroll using manual methods so that one understands how the payroll is actually computed so that the participant could explain and demonstrate to fellow employees how their pay is calculated.
The main reason why employees work is because of wages. Employees expect employers to pay wages according to the agreed terms in the contract of employment and the laws
Employment Laws (Employment Act 1955, Labor Ordinance Sabah 2004, Sarawak 2005), EPF, SOCSO, EIS (Employment Insurance System) and Income Tax laws dictate how wages should be calculated and what deductions and contributions should be made
The Main Challenge for Payroll Specialists
Many, if not most, organizations use payroll software to compute payroll. The challenge is how to explain to employees how the software processes their pay. And also why for some months the PCB is higher than other months
How Does this Workshop Help?
This programme shows you how to compute your overtime calculations & PCB calculations using manual formulas and EPF, SOCSO & EIS tables, so you will understand the system better and also be able to explain to other employees how the payroll software works; step-by-step
- Difference between wages and salary
- Contracts of Employment vs Employment Laws
- Daily rated, monthly rated and piece rated employee
- Who is an employee?
2) OT Calculations
- Formula for calculation of Ordinary Rate of Pay (ORP) and Hourly Rate of Pay (HRP)
- OT rates on week-days, Rest Days and PH
- When does OT start?
- Limit on OT hours
3) Leave Benefits & Encashment
- Sick Leave
- Hospitalization Leave
- Annual Leave
- Maternity Leave
- Paternity Leave
4) Wages Administration & Incomplete Month Calculations
- Minimum wages
- Formula for calculation of salary for incomplete month
- Minimum and maximum amount of salary advance and loans
- Authorized and unauthorized deductions; and its limit
5) Resignations and Dismissals
- Notice period
- Calculation of salary in lieu of notice period
- Calculation for last day of service
- Short notice
- Who is eligible for retrenchment benefits?
- Notice period and compensation for retrenchment
- Calculation for payment of retrenchment benefits
- Payment date of retrenchment benefits
7) Part-time Employees: Benefits
- Who are the part-time employees protected by EA?
- Overtime calculations
8) SOCSO, EPF & EIS Deductions & Contributions
- Who is eligible for deductions and contributions?
- What types of income are subject to SOCSO, EPF and EIS contributions?
- Rate of deductions for different classes of employees
9) Income Tax: Monthly Deductions (MTD / PCB)
- Definition of wages for income tax deductions
- Normal vs additional remuneration
- Reliefs, Rebates and Exemptions from tax
- Using the formula method to compute MTD/PCB
- Compulsory and optional deductions TP1 & TP3 forms
10) Income Tax: Benefits-in-kind and Perks
- Calculating value of benefits, perks, VOLA
- Formula and prescribed value methods of determining taxable values
- Preparing the EA form
BRING YOUR CALCULATORS!
As this experiential workshop involves a lot of practical calculations, it will be useful if you bring along your calculators.