Add New Payments

Payments is designed to allow admins to create and manage various types of payments beyond salary, such as bonuses, commissions, or other payments according to company policy.

This feature supports multiple payment scenarios and provides greater flexibility in payment management.

How to Add a Payment Type

Click Preferences
Select the Payroll tab
Click Payments

Payment Details

Name

Enter the payment type name.

The name must not duplicate an existing payment type
The name must not duplicate any deduction name
If the system displays a duplicate name warning, please check whether the name already exists
The payment name must not contain special characters, such as :

Payment Configuration

This section allows admins to configure how each payment type is treated within the payroll.
Branch

Select the branch where this payment type is applicable. Branches that are not selected will not be able to add or upload this payment type during payroll processing.

Settings

Contract

Select this checkbox if you want this payment type to appear as a regular payment option in the employee contract.
1. Prorate by Attendance
  
  Select this checkbox if you want the payment amount to be prorated based on actual working days within the payroll period.
  1. Prorate Payments by Attendance applies only to payments from contract
  2. For allowances configured via Allowance Rule, the calculation follows the settings defined in that rule and does not use the contract prorate logic.
Reimbursement - Submit Request

Enable this option if you want this payment type to be available when employees submit reimbursement requests.

Once Submit Request is enabled, the following settings become available for configuration:
1. Default:
  
  Enable this option to automatically assign this reimbursement payment type to all newly created employee profiles under the Reimbursement tab.
  
  Note: This setting applies only to newly created employees. Existing employee profiles will not be updated automatically.
2. Maximum Amount Per Request
  
  Enable this option and specify the maximum amount an employee can claim in a single reimbursement request.
3. Calculation Period
  
  Select the period used to calculate the maximum reimbursement amount.
  1. None: No reimbursement limit is applied.
  2. Per Month: Sets a maximum reimbursement amount that an employee can claim within a calendar month.
    
    Reset Date: Select the date on which the monthly reimbursement limit resets.
    
    Example: If the Calculation Period is set to Per Month and the Reset Date is 30, the reimbursement period will be :
    
    Feb 2026: 30 Jan 2026 - 27 Feb 2026
    
    Mar 2026: 28 Feb 2026 - 29 March 2026
    
    Apr 2026: 30 March 2026 - 29 April 2026
  3. Per Year: Sets a maximum reimbursement amount that an employee can claim within a calendar year.
    
    Reset Date: Select the date on which the yearly reimbursement limit resets.
    
    Example: If the Calculation Period is set to Per Year and the Reset Date is 1 January, the reimbursement limit will reset on 1 January each year.
4. Maximum Amount Per Period:
  
  Specify the maximum reimbursement amount an employee is allowed to claim during the selected Calculation Period (Per Month or Per Year).
5. Request Reimbursement After:
  
  Specify when employees become eligible to submit reimbursement requests.
  1. 1 Year of Service: Employees can submit reimbursement requests only after completing one year of service.
  2. Join Date: Employees can submit reimbursement requests from their joining date.
  3. Probation End Date: Employees can submit reimbursement requests only after successfully completing their probation period.
6. Mandatory Attachment
  
  Enable this option to require employees to upload supporting documents before submitting a reimbursement request.
7. Reason Type
  1. Enable this option to require employees to select the specified reason when submitting a reimbursement request.
  2. You can add options to the dropdown by clicking the plus (+) button, or remove options by clicking the delete (-) icon.
Approval Workflow

Approval steps can be configured as follows:
1. Manager Level 1
  
  You can define whether the request requires approval from any one manager (Any) or all Level 1 managers (All).
2. Manager Level 2
  
  You can define whether Level 2 managers:
  1. Receive notification only (Notify), or
  2. Require approval from any one manager (Any), or
  3. Require approval from all managers (All)
Tax Exemption Amount

Each payment type can be configured with a Tax Exemption Amount, an annual cap that determines how much of the payment is treated as tax-exempt for MTD calculation purposes.

How it works

Tax Exemption Amount does not make a payment fully tax-free. It sets the threshold:
- If the payment amount is within the annual cap, the full amount is excluded from MTD calculation
- If the payment amount exceeds the cap, only the portion above the cap is taxable
- Example: Travel Allowance with a Tax Exemption Amount of RM 6,000/year. If an employee receives RM 8,000 in travel allowance, RM 6,000 is exempt and RM 2,000 is subject to tax.
  
  This is different from a fully exempt payment (Taxable unchecked), where the entire payment is excluded from MTD calculation regardless of amount.
  
  Note
- Entering RM 0.00 in the Tax Exemption Amount field is not allowed. If a payment is fully taxable, leave the Tax Exemption Amount unchecked.
- Fully exempt payments (e.g. Parking, Meal Allowance) do not require a Tax Exemption Amount. Leave Taxable unchecked and leave the field empty.
EA Category

EA Category defines how a payment type is classified in the EA Form (Borang EA), which is the annual income statement issued to employees for tax filing purposes. Each payment type in ByteHR can be mapped to an EA Category so that the correct amounts appear under the correct sections of the form.

Note

None — the payment is excluded from the EA Form entirely. Use this for payments that are not relevant to EA reporting.