Employee Provident Fund (EPF)

Details of Employee Provident Fund (EPF)

1. By default, EPF Contributions are listed under Employee Details -> Contracts -> Income Tax Details ->Tax Deductions.

   

2. EPF employee and EPF Employer contribution rates  can be edited.

   

   You may remove the EPF Contributions field by clicking "X"'

   

   Removing EPF Contributions will result in:

   1. Payroll: Employee and Employer EPF Contributions will be shown as "0'.

      

   2. Tax Computation: EPF Contribution will not be included in Tax computation.
3. EPF Tax Relief:
   1. The system will consider the actual contribution amount for each month in the Tax calculation, and the total will be accumulated until it reaches the amount limit of RM 4,000.
   2. EPF Employee contributions are tax deductible up to maximum RM 4,000 per year.