On 1 March 2021, Malaysia’s Human Resources Development Fund (HRD Corp) has expanded the coverage of the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act 2001) to include all industries. It’s compulsory for all employers with 10 and above employees to contribution the levy.
ABSS Payroll v13 has been updated to be aligned with the changed regulation. You only need to setup if your company is liable to pay the levy under this Act.
1. HRDF Contribution Rate Setup
Go to Setup Command Centre, click HRDF Contribution. The HRDF Contribution window appears.
Alternatively, you can also access the HRDF Contribution from Command Centre.
Note: For newly upgraded file, if user encounter message below, kindly log out from the data file and log in again. If error persist, please check user access right on this HRDF feature.
In HRDF Contribution window, if you need to change the HRDF rate, you can just overwrite the percentage column. The rate will be used to calculate the total HRDF levy contribution in the report.
2. Global Payroll Component
After setting up the HRDF rate, you may proceed to configure the payroll earning component, HRDF checkbox has been added into income payroll component that allows user to configure the respective wages and fixed allowances. You just need to select earning component and tick the HRDF checkbox.
The HRDF checkbox is only applicable to earning type of payroll component.
If you have done the configuration in the global payroll component, you don’t need to change the setting in individual employee’s income component.
3. Employee Payroll Component
You may proceed to Card File > Payroll Details to verify the earning component for each employee. If the local employee’s earning component is set to “Use Default Setting”, the HRDF checkbox will automatically follow the global setup.
You are required to review all the employee’s earning component setting after upgrade.
Important Notes: For payrun(s) which is processed BEFORE ticking the HRDF checkbox in respective global component / employee's payroll details component, these payrun's amount will be EXCLUDED in HRDF report's calculation
4. HRDF Contribution Report
HRDF Contribution report can be found under Reports > Payroll option.
After clicking the HRDF Contribution, system will launch employee Selection window. You can specify the payroll year, month and other filter such as Department or Cost Centre.
You can generate HRDF report 8 years prior to current payroll year.
Select all the employee and click the OK button, system will display the report layout for preview.
The report shows details of each employee’s wages amount and the total wage which is linked to HRDF. The report also included with a grand total where you can copy and paste into the HRDF portal when you submit the levy via HRDF portal.
You can also view the Total levy to be paid which is calculated based on the rate you have defined. This serves as your references to compare with the levy value calculated by the HRDF portal.
5. Security Access
The HRDF Contribution setup option is also added into the security accessibility setup window, where you can grant the access right of this new function to any user.
6. Audit Trail Report
Audit Trail will also be updated when user makes changes on HRDF contribution rate or changing the setting of HRDF flag in global payroll component or individual’s payroll component.
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