ABSS Payroll v12 - January 2021

This Release Notes describe the software installation steps and new compliance updates and enhancements.

Users can install the update from the CD provided or via web download.

Before installation

1. Please back up your data files (company files).
2. Close any existing programs.
   
   
   To install from the CD
3. If your computer only allows administrator role to install program, please log in as administrator.
4. Insert the CD into the drive. ABSS Payroll installation window will appear.
5. If the ABSS Payroll window did not appear, open the CD contents in Windows Explorer and double-click the ABSS Payroll v12 MY_Setup.exe Click install, an installation window appears.
6. Follow the installation instructions on the screen. Upon completion, the InstallShield Wizard Complete window will appear.
7. Proceed to click

To install the update from a web download

1. Download the ABSS Payroll v12 MY_Setup.exe program installer to your desktop.
2. Double-click the program installer. An installation window will appear.
3. Follow the installation instructions on the screen.
4. Upon completion, the InstallShield Wizard Complete window will appear.
5. Proceed to click Finish.

1. Personal Income Tax Rate Update

Tax calculations updated in compliance with Malaysian Budget 2021 (w.e.f 1 January 2021).

a. The tax rate for resident individuals with chargeable income in the band of RM50,001 to RM70,000 is reduced to 13%. Please refer to the Tab 1.0 below for the updated tax rebate amount:

       

P - Total chargeable income for a year
M - Amount of the first chargeable income for every range of chargeable income a year
R - Percentage of tax rates
B - Amount of tax on M after deduction of tax rebate for individual and husband or wife, if qualified

2. Personal Income Tax Relief Updates for Year of Assessment (“YA”) 2021

• • increased tax relief limit for a disabled spouse to RM5,000. (Previously RM3,500)
  • tax relief limit for medical treatment, special needs, and carer expenses for parents increased to RM8,000. 
  • new tax relief for vaccination expenses (limit to RM 1,000) has been introduced that constitutes part of existing medical expenses for self, spouse, and child, and the total relief increased to RM8,000
  • tax relief limit for education expenses now covers up-skilling and self-enhancement courses (limit to RM 1,000) that constitutes part of the existing tax relief of RM7,000
  • tax relief limit for lifestyle limited to RM3,000, where the additional RM500 is specifically for expenditure related to sports, including subscription of electronic newspapers 
  • tax relief limit on childcare services expenses increased from. RM2,000 to RM3,000 (w.e.f 2020)
  • new tax relief for domestic tourism expenses with limit RM 1,000 has been added (w.e.f 1 Mar 2020)

a. The Allowable Optional Deductions and Rebates windows have been updated, to align with changes mention above. Refer to IMG 2.1 & IMG 2.2

For YA 2020

IMG 2.1

For YA 2021

IMG 2.2

b. In line with the changes stated above, relevant forms have been updated.

• • • Form TP1 – Borang Tuntutan Potongan Dan Rebat Individu (refer to IMG 2.3, IMG 2.4, IMG 2.5)

Form TP1 (Page 1)

IMG 2.3

Form TP1 (Page 2)

IMG 2.4

Form TP1 (Page 3)

IMG 2.5

• • • Form TP3 – Borang Maklumat Berkaitan Penggajian Dengan Majikan-Majikan Terdahulu Dalam Tahun Semasa (refer to IMG 2.6, IMG 2.7, IMG 2.8, IMG 2.9)

Form TP3 (Page 1)

IMG 2.6

Form TP3 (Page 2)

IMG 2.7

Form TP3 (Page 3)

IMG 2.8

Form TP3 (Page 4)

IMG 2.9

3. Reduction in Contribution to Employees Provident Fund (EPF) from 11% to 9%

For all newly created data files, the default system setting (in the setup wizard) for employee EPF contribution rate has been updated to 9%. (refer to IMG 3.1)

IMG 3.1

Note:
Existing users who upgraded the data file from the older version to v12, are advised to change the default setting of the employee EPF contribution rate manually.

1. Contribution Statistic Report

User can now see the grand total amount of employee and employer contributions made to all statutory payments. (refer to IMG 4.1 & IMG 4.2)

IMG 4.1

IMG 4.2

2. Leave Processing window enhancements

This enhancement enables a user to process back-dated annual leave prior to the resigned staff's official last working date, even though they have processed the final pay run. (refer to IMG 5.1)

Note:
If you have processed the pay run for the subsequent payroll year, you are advised to restore the previous year's backup data and make the necessary leave adjustments. 

IMG 5.1