Why is PCB/tax not being deducted payroll processing?

Possible Cause #1: The employee tax setting under the employee's profile has some missing details.

Step 1

On your homepage, go to your left menu, click on Employee > Directory. Select the employee by double-clicking on the employee's name. 

Step 2

Once you are in the employee's profile, click on the Bank & Statutory tab. We'll need to check the employee's tax setting.

Step 3

Check if the mandatory settings are completed: 

1. Income Tax  # - mandatory for tax-paying employees
2. Income Tax Resident - mandatory for both tax-paying employees and non-taxpaying employees
3. Tax Category - mandatory for both tax-paying employees and non-taxpaying employees

Possible Cause #2: The employee's earnings processed in the pay run are payroll items that are not subjected to tax.

Step 1

Go to the left icon of the screen, click Payroll > Payroll Review > Individual Payroll.Let's verify the employee's Fixed Income Tax Base as shown in the screenshot below. This sample is showing RM0 PCB (tax deduction) and similarly RM0 Fixed Income Tax Base.  Notice that there is only one payroll item (earning transaction) which is Test 350.

Step 2

Check the payroll item's setting on the left icon > Setting > Payroll > Payroll Items.

Step 3

Search for the said payroll item. As shown in the screenshot below, you can search by typing the payroll item's name. Double click on it once you found it. 

Step 4

Check the payroll item's Tax Category setting, as shown in the red box in the screenshot below. Notice that it is set at None. This means the payroll item is not subjected to the monthly tax deduction. To correct this, click on the Edit button on the top right of the screen and correct the category setting accordingly. You may then need to delete the pay run and rerun the payroll again to capture the new setting.