This article explains how to update a deduction that has already been set up for an employee. You make the change from the employee's Pay run settings > Pay run inclusions page. The deduction amount can be a fixed amount.
Once a deduction has been set up (the tutorial can be found in Setting up Employee Deductions), you are able to update these deductions by going into the Employee tab on the dashboard and clicking on the employee's name from the list or doing a search for them in the search box.
Once you have chosen the employee from the list, you need to click on the 'Pay run settings' > 'Pay run inclusions' link
Choose which deduction you would like to update and click on it. This will open up the deduction in detail and allow you to adjust:
- Enter the deduction amount to be applied per pay run. It can be a Fixed amount or a Percentage of gross.
- Select whether you want to pay the deduction manually, paid to a bank account, paid to the LHDN/IRB account, or paid to Zakat (this is the only option if the deduction category is Zakat).
- If in Step 4, you have chosen a bank account, ensure you then select the relevant bank account which will need to have been created first on the 'Employee file' > 'Bank accounts' page.
- Enter any notes if you want the employee to see them on their pay slip.
- Enter the date this inclusion is to commence.
- Choose when this inclusion should cease ('on the following date', 'never' or 'after the following amount has been reached');
Click Save when finished.
Setting up Preserved Earnings
Preserved earnings is defined as the minimum net earnings an employee MUST be paid before a deduction amount can be applied in the pay run. For example, an employee could have a garnishee order but part of the order includes that the employee's net pay cannot be reduced to less than RM300 per week as a result of the garnishee order. To set this up of example, you would:
(a) Preserved earnings: select 'Once a minimum net earnings limit has been reached';
(b) Preserved earnings amount: enter 350;
(c) If the amount is not reached: here you can choose to have none or only part of the deduction amount processed in the pay run;
(d) Carry forward unpaid deduction amounts: here you can choose whether or not you want any unpaid deduction amounts to be carried over to following pay runs. For example, say an employee’s recurring deduction amount was fixed at RM100 per pay run but only RM50 was deducted in the pay run. If you choose to carry forward the unpaid deduction amount, the unpaid RM50 will be carried over and a total of RM150 will be deducted in the following pay run. If you choose not to carry it over, the unpaid RM50 deduction amount will be disregarded and in the following pay run only the recurring RM100 will be deducted.
(e) Carry forward unused preserved earnings: here you can choose whether or not you want any preserved earnings that are paid below the preserved earnings carried forward. For example, an employee has preserved earnings set at RM300. In one pay run the employee is only paid RM200 in net earnings. If this setting is ticked, the difference of RM100 will be carried over so that the preserved earnings for the next pay run will be RM400.