Understanding which pay items in Talenox falls under the corresponding sections in form E is important for all users, especially during the tax season. 😁
Below is the compiled list of categorised pay items (according to the specific tabs) that are found in Payroll under Step 2 “Select Pay Item” & Step 3 “Select Tax Deductions and BIK/VOLA (non-monetary)”
Step 2 - Select Pay Item:
Monthly Payment/Deduction Tab
Pay Items | Mapped to Form E |
Any Recurring/Adhoc/Attendance/Leave Payment/Deduction pay items with the Tax box checked (includes VOLA amount, Benefit in Kind Amount, and ESOS Benefit amount) | Total gross salary |
Pulled from employee profile details | Number of children qualified for tax relief |
Pulled from employee profile details | Total qualifying child relief |
Allowance, Achievement Awards Tax-exempt will be for the items that have the Tax checkbox unchecked | Tax Exempt Allowances / Perquisites / Gifts / Benefits |
Amounts should be keyed in manually by Admin. TP1 is given to the employer by the employee | Total Claim For Relief By Employee Via Form TP1 |
System calculated EPF Employee amount for the year | Contribution To Employees Provident Fund |
System calculated SOSCO + EIS Employee for the year | SOCSO contribution paid via salary deduction |
Ad Hoc Payment/Deduction Tab
Pay Items | Mapped to Form E |
Any Recurring/Adhoc/Attendance/Leave Payment/Deduction pay items with the Tax box checked (includes VOLA amount, Benefit in Kind Amount, and ESOS Benefit amount) | Total gross salary |
Pulled from employee profile details | Number of children qualified for tax relief |
Pulled from employee profile details | Total qualifying child relief |
Benefit-in-Kind - with Tax box checked | Benefits in kind Amount |
Value of Living Accommodation | VOLA (Value of Living Accommodation) |
Share Option Sale | ESOS Benefit Amount |
Allowance, Tips, Achievement Awards Tax-exempt will be for the items that have the Tax checkbox unchecked | Tax Exempt Allowances / Perquisites / Gifts / Benefits |
Pulled from employee profile details | Total Claim For Relief By Employee Via Form TP1 |
System calculated EPF Employee amount for the year | Contribution To Employees Provident Fund |
Zakat Deduction | Zakat Paid Via Salary Deduction |
System calculated MTD amount for the year | MTD |
CP38 Tax Deduction Order | CP38 |
System calculated SOSCO + EIS Employee for the year | SOCSO contribution paid via salary deduction |
Step 3 - Select Tax Deductions and BIK/VOLA (non-monetary):
Pay Items | Mapped to Form E |
Any Recurring/Adhoc/Attendance/Leave Payment/Deduction pay items with the Tax box checked (includes VOLA amount, Benefit in Kind Amount, and ESOS Benefit amount) | Total gross salary |
Benefit-in-Kind | Benefits in kind Amount |
Value of Living Accommodation | VOLA (Value of Living Accommodation) |
Pulled from employee profile details | Number of children qualified for tax relief |
Pulled from employee profile details | Total qualifying child relief |
TP1 is given to employer by employee | Total Claim For Relief By Employee Via Form TP1 |
Zakat | Total Claim On Payment Of Zakat By Employee Via Form TP1 |
System calculated EPF Employee amount for the year | Contribution To Employees Provident Fund |
System calculated MTD amount for the year | MTD |
System calculated SOSCO + EIS Employee for the year | SOCSO contribution paid via salary deduction |
After you're done checking through your pay items, the next step would be to download your Form E from Talenox and submit this to LHDN accordingly.
You can take a look at this guide for the full steps on how to Print Form E from Talenox (Malaysia). Tax season just got a lot more convenient! 😄