Why does a new employee’s PCB multiplies in January on his second service year?

Possible cause: Upon the employee's join date in the first year of service, his/her previous employment figures might have not been keyed into the system.

For new employees with a previous employment record in the same year, it is important to input their previous employment accumulated figures into the payroll system. These are the same figures from a newly hired employee’s previous employment which employers are also required to submit via the TP3 Form (LHDN).

If the previous employment figures are not inputted into the system, it will assume that the employee hasn’t worked before in that same year and will then under-deduct his/her monthly tax deduction

Step 1: 

To insert the data into the system, go to your left menu, and click on Employee > Directory.

Step 2: 

Once the Employee List page is showing; select the newly joined employee’s name by clicking on it.

Step 3: 

As shown in the illustration below, by now the employee profile will appear. Click on Experience and then on the Edit button.

Step 4: 

Next, you will be able to see the Previous Employment Figures Take On section. Click on Add Payroll. A row of empty columns will appear. You may then insert the data declared by the employee in his/her TP3 form accordingly. 

Note: The Previous Employment Figures Take On tool’s purpose is to capture the previous employment payroll figures from the previous months in the same year he/she joins us, as the new company. If he/she does not have any employment records in the same year, he/she is not required to complete this section. Leaving it empty will signal the system that the employee hasn’t worked before in that year, which will cause a lower tax deduction. The main point is to enable the system to calculate accurately the employee’s tax and produce a more regulated amount.