Payroll Tax Computation

Effective January 1, 2009, Computerised Calculation Method was introduced and is applicable ifan employer uses a computerised payroll system provided by the software provider or developed/ customised by the employer in accordance with specifications determined and reviewed by theLHDNM.  However, an employer who does not use a computerised payroll system will continue to deduct their employees’ monthly tax using the Schedular Tax Deduction (STD) Method.

This method was subsequently streamlined further in 2010 where employers no longer refer to employees’monthly tax deduction as monthly Schedular Tax Deduction (STD) but Monthly Tax Deduction (MTD) using either the Computerised Calculation Method or the Schedular Tax Deduction Table Method.

Due to these changes in 2009 and 2010, many employers have found difficulty in answering their employees’ queries on the sudden increase/ decrease in their monthly tax deductions as well as understanding the new calculations and formula. Thus, this programme is targeted to answer these queries and to enhance the understanding of the new calculations and formula.  

Objectives       The program should achieve the following objectives:

• Have an understanding of the impact and implication of the new Monthly Tax Deduction using:
• The Computerised Calculation Method
• The new Schedular Tax Deduction Table
• Have an understanding of the Computerised Calculation Method Formula.
• Learn to compute the Monthly Tax Deduction (MTD) using the formula provided by LHDNM manually.
• Learn to compute the Additional Remuneration using the formula provided by LHDNM manually.
• Understand why the new Monthly Tax Deduction (MTD) was implemented and the benefits of its implementationTo understand what are the year-end reports & statutory requirement.

Module 1

• Introduction

Module 2

• Background of the Scheduler Tax Deduction (STD) and Monthly Tax Deduction (MTD)

Module 3

• Why was the new Monthly Tax Deduction (MTD) Method Implemented?

Module 4

• Scenarios before the Implementation of the Monthly Tax Deduction (MTD) Method

Module 5

• Implementation of the Monthly Tax Deduction (MTD) Method

-        Adjustment of Allowance, Perquisites, Provisions and Benefits

• Method of Implementation for Allowances, Perquisites, Provisions and Benefits
• Allowances, Perquisites, Provisions and Benefits that are Exempted from Income Tax (in accordance to limits allowed)

-        Allowable Deductions and rebates under income tax act

• Claiming for deductions and rebates
• Method of implementation for claiming deductions and rebates

-        Changes in the tax deduction formula calculations

• Method of implementation for the changes in the tax deduction formula calculations

-        Minimum Remuneration and reduction in monthly tax deduction (MTD)

-        Options to include Benefits-in-kind (BIKs) and value of living accommodation (VOLA) as part of remuneration

• Monthly Tax deduction for Benefits-in-kind (BIKs) and value of living accommodation (VOLA)
• Method of implementation for monthly tax deduction (MTD) for benefits-in-kind (BIKs) and value of living accommodation (VOLA)

 Module 5 (Cont)

-          Changes in the additional Remuneration formula

• Comparison between the previous bonus calculation and the additional remuneration formula

-        Amendment of Rules – Rules of income tax act (Deduction from remuneration ) 1994

• Amendment in the Definition of Remuneration
• General definition of remuneration
• Definition of additional Remuneration

-        Monthly tax deduction (MTD) Method

-        New hires in the company

-        Monthly tax deduction (MTD) for returning expert program (REP)

-        Knowledge worker at specific region (ISKANDAR)

-        Furnishing of date and payment method for monthly tax deduction (MTD)

-        Benefits of the newly monthly tax deduction (MTD) Method

-        Conclusion

Qualification / Professional Membership

• Graduate Diploma in Financial Management
• Bachelor of Economics, University of New England, Australia
• Certified Trainer with the Pembangunan Sumber Manusia Bhd (PSMB)
• Life Member of the Persatuan Ekonomi Malaysia

Relevant Expertise and Work Experience

Ms. Yeoh is one of the Managing Consultant in PM Resources Sdn Bhd with a Degree in Economics and a Graduate Diploma in Financial Management from Australia. She is also a certified trainer with Pembangunan Sumber Manusia Berhad (PSMB). She has more than 20 years’ experience where her skills have been capitalised in various capacities including overall management of the outsourcing practice, human resource consulting and personnel management as well as an advisory role to clients in business processes outsourcing. Her portfolio ranges from multinationals, local conglomerate, small medium size companies and MSC status companies. Her area of expertise is in the design, development and implementation of tailored-made business models to meet the outsourcing requirements of different clients. The good combination of her creativity and business acumen is evident in the review and design of business processes aimed to streamline various procedures and work flow to ensure that efficiency is maximised and adequate controls are in place, at the same time, continuing to look into effective cash and cost management. Ms. Yeoh is also involved in business development and has spoken and presented at a number of HR seminars, conferences and workshops organised by Systematic Secretarial Centre Sdn Bhd, Jobs DB Malaysia Sdn Bhd, CCH Malaysia Sdn Bhd and The Asia Business Forum.

Topics covered during these seminars, conferences and workshops include:

• Surviving The Job Market In This Current Economic Situation
• Hiring On The Net – Do You Have An E-Strategy?
• Human Resources – Your Investment
• Designing, Implementing & Maintaining a HR Balanced Scorecard For Organisational Success
• Managing Performance To Improve Career Management And Succession Planning Initiatives
• Developing Effective Human Resource Policies & Practices
• Managing For Performance
• Achieving Optimal Organisational Performance
• Managing & Processing Payroll in Malaysia
• Payroll Tax Computation
• Developing Job Descriptions
• Effective Interviewing Skills

She was also the consultant and technical reviewer / author for the following publications by CCH Malaysia:

• The Hands On Guide – HR Skills for Managers Training Kit Malaysia
• CCH Job Descriptions Software Package
• Recruitment Manager Software
• Essential HR Solutions Malaysia Letters, Forms & Policies
• CCH Employee Manual
• HR Letters, Forms and Policies Malaysia 

Ms. Yeoh also trains for the Malaysian Institute of Accountants (MIA), Mind Growth Training Consultancy, Applied Intellect Management Training Sdn Bhd, Globalacc Research & Training Sdn Bhd and P To B Solutions (P2B).

Ms. Yeoh is an avid writer and has contributed to the New Straits Times Appointment Pages, the Ascent Section of The Sun newspapers and the CCH Malaysian Employers’ Bulletin. She has also appeared on the TV3 ‘Malaysia Hari Ini’ Talk Show and on Capital TV under the Capital Talk Segment.