Salaries that are paid out twice a month, termed semi-monthly or bi-monthly payroll, for employees can be a bit more complicated. It is usually practised by American companies or in some industries like F&B.
The steps are almost the same as processing monthly payroll, with certain parts in particular that a user will need to take note of.
Step 1 - Process Payment
1) Select Employees
Head to Payroll > Payroll Settings > Process Payment, and select 1st Half of the Month (1st to 15th of the month payments) or 2nd Half of the Month (16th the to end of the month payments).
Then, click on "Select Pay Items | Next >":
2) Select Pay Item
Next is the payroll 'menu', where we sort the nature of pay items into 3 different tabs:
Monthly Payment/Deduction - Show up each time a new payment is created.
Ad Hoc Payment/Deduction - Entered just for this payment and will be reset when a new payment is created.
Hourly/Daily Attendance - Record exact hours or days worked for staff, including overtime.
Basic Pay and other prorated items will be prorated according to the number of days worked in the half of the month indicated in the Select Employees step.
Once everything's been captured, hit "Select Tax Deductions | Next" (blue button, top right). Fear not, you can always return to this page to make changes.
Note: Naming a payment will be helpful if you intend to create multiple payments in a month e.g. 1st Half of Aug 2022.
3) Select Tax Deductions and BIK/VOLA (non-monetary)
You can key in any additional tax deductions into the system.
Take note that SOCSO contributions will be calculated and populated into this step automatically.
NOTE: Pay items keyed into the Select Tax Deductions and BIK/VOLA (non-monetary) step will not contribute to payroll calculations, only PCB calculations in the system.
You’ll have to key these pay items into the Select Pay Item step for the amounts to affect payroll directly. 👍🏻
4) View Summary
Finally, you can choose to pay out by salaries by Cheque or Bank Transfer. Choosing "Cheque" just means that it won't be populated in the bank file to be exported for salary disbursement.
Step 2 - Month Total & Bank File Exporting
At Payroll > Payroll Settings > Month Total, you can export the bank files and upload them to your corporate bank account.
You can follow these steps:
Head over to Month Total > Export Bank file / EPF / PCB(MTD) > Make Payment
Check if there is Reconciliation** by heading to the Reconciliation Amounts (B) column on the page.
If there is Reconciliation and if it is not the final payment for the month, uncheck "include reconciliation".
After checking through the amounts showing, head to Options to download the Bank File in GIRO/FAST format.
Remember that once the final payment is processed for the month (Eg. 2nd half of the month), you'll have to "Include reconciliation" amounts into the final bank file for your employees.
NOTE: Reconciliation (also known as Tax Withholding in Talenox) is designed for employees who are paid more than once a month with less than RM 750.00 of salary.
We withhold the max amount of employee statutory contributions to ensure that when such employees resign, there will be enough buffer to pay out their contributions at the end of the month.
Here are some other related topics that should help you along: 😃