altHR is officially approved by the Inland Revenue Board of Malaysia (LHDN). Our PCB/MTD calculations are fully compliant with LHDN requirements. We
Before running your first payroll, you must update your Company Payroll Details in the Payroll module and Employees Details and their Compensation Details in the People and Payroll module. Otherwise, you will be unable to run payroll and will then end up receiving an incorrect payroll computation.
There are SEVEN (7) IMPORTANT STEPS that must be completed before running payroll and it must be done in this sequence:
|Module||Sub-Module||Items||Notes & Remarks|
|Company||1) Company Profile||1. Company Address||This is important since some statutory reports will include the company address.|
|People||2) Employee's Details|
1. Personal Info
2. Employment Info
|It is important to keep all of your employees' information and compensation up to date, as payroll is reliant on all of this information from the People module.|
Bank & Statutory details: It is important to ensure all your company's statutory details are updated.
*Previous employment income is the income the employees earned and contributions they paid in other companies prior to joining your company in the current calendar year.
|3) Compensation||1. Compensation details|
2. Bank details
**Alternatively, you can choose to bulk upload employees' compensation.
|Payroll||4) Settings||A. Company Payroll Details.||1. We currently have txt files for bank portals like CIMB, Maybank, RHB, Public Bank, and OCBC only. |
2. It is critical to keep the company's statutory information up to date, as most statutory reports will pull information from here when they are generated.
|B Set Pay Items|
1. How to add new pay items
2. How to set and configure pay items
|It is crucial to choose the correct contribution setting when adding new pay items; otherwise, you risk under-deducting or over-deducting contributions, resulting in incorrect income statements for your employees and/or LHDN/EPF/SOCSO/EIS/HRDF. |
IMPORTANT: Please note that the preset pay items are there as a reference for you to set up. You may, however, use the preset pay items if you see fit. Furthermore, because each company may/will have different payment terms, payment consistency, and payment purposes, this could result in different statutory entitlements and tax treatment. To ensure that your company's pay item nature is correctly configured in altHR, we strongly recommend that you contact LHDN / KWSP / PERKESO / HRDC to check and confirm.
ATTENTION: Give this article a read to better understand the EA fields when adding a new pay item!
|C. Payslip Settings|
1. How to create password for payslip
|Create a password for the payslips to provide an extra level of security.|
|D. altHR Integrations. |
|1. Expenses: Switch on to pay out processed expense claims on Payroll|
2. Documents: Switch on to send employees' payslips to the Documents module in employees' Mobile/Web app.
|E. Import Templates.|
1. altHR Full Compensation Migration
2. altHR Previous Pay Runs
|1.How to bulk upload employees' compensation|
*Employees' compensation including Salary, Bank Info, Statutory Info and Previous Employment Income.
2. How to upload Previous Pay Runs
IMPORTANT: If you are moving to altHR from another payroll system in the middle of the year, this is very crucial for tax calculation for all existing employees. With Previous Pay Runs updated, the YTD salary and contribution will be captured to ensure tax computation accuracy.
ATTENTION: In order for you to successfully upload the Previous Pay Runs, you will need to upload the Full Compensation Migration template first. The flow should be:
(1) Compensation Migration.
(2) Previous Pay Runs.
|5) Compensation||Employee's Income Tax Details||It is crucial to keep all of your employees' income tax profiles up to date in order for the mandatory tax relief to be included when running payroll.|
|Employee's TP1 Tax Relief||This is related to additional/custom tax relief. You may add it if it's relevant to you.|
|6) Run Payroll||How to start running payroll||When you run your first payroll, there will be a setting for you to select whether to run payroll from January 2022 or the month you are in.|
On the Run Payroll page. Basic steps:
|7) Completed Pay Run||Pay salary and make statutory payments using bank reports.|
|Download SOCSO & EIS monthly statutory report|
Download LHDN & e-CP39 monthly statutory files
|Send employee's monthly payslip to the Documents module|
|Add LHDN & CP38 receipt for PCB2(II) report purpose|
|Download altHR payroll report|
If you encounter any issues, please read the error message and amend it accordingly. Should the issue persist, please reach out to firstname.lastname@example.org and our Payroll Support team will help you.