How to have zakat deduction in the payslip

Step 1

Navigate to Settings (1) > Payroll (2) > Payroll Items (3) to set up a Zakat payroll item to be added when deducting Zakat contributions from an employee's payroll.

Step 2

Click on Add New (5) under Deduction (4) and name the payroll item as a Zakat contribution, which is deductible.

Step 3

After clicking on Add New, you will see a similar screen as below. Fill up the necessary information (Name, Label, Prorate Tick box, etc.) and make sure to select the correct EA Form for flagging.

D(3) = When Zakat is deducted from the Payroll 

D.5(b) = When additional Zakat is paid (not in payroll) via TP1 Form

Step 4

Navigate to Payroll (1) > Transactions (2) > Fixed Transaction (3) > Add New (4) to set up Fixed Transactions for Employees.

Step 5

Once you select Add New, you will be redirected to the screen below. Refer to the explanation below for each field:

Effective Date = The date that the payment will start to be deducted/ added to the employees' payroll

Payroll Item Type = Select whether the transaction is an earning or deduction type

Payroll Item = Select the Payroll Item that was created in Step 3

Regular Amount = The amount that is consistently reoccurring 

Last Amount = The amount that will be different from the regular amount

Pay cycle = Make sure to select the correct pay cycle that you wish to add/ deduct this transaction from

Save the fixed transaction.

Then process your payroll as usual. Zakat will capture in the payslip.