Why Basic Salary should be processed as last payroll?

The Last Cycle of Period => The pay cycle will capture all the previously processed figures and accumulate them as a chargeable income for tax computation ( PCB). 

This is an important field to be filled up with the pay cycle that would be the same as the pay cycle that used to process Basic Salary.

Thus all the ad hoc payrolls should be processed before processing the Basic Salary as the last payroll. 

It will include Bonuses, Claims, OT, commissions, incentives, and any other ad hoc/ additional payrolls to be processed first before the basic salary payroll.

What happens when ad hoc payrolls are processed last?

As in the below image, the Bonus is processed last after the Basic Salary is processed based on the sequence order in the Payroll Review screen.

Since the Month-End pay cycle ( Last Cycle of Period) is used in the initial payroll, thus it won't be able to accumulate figures from the Bonus payroll.

The above image shows the PCB breakdown in the Payroll Review of the Month End payroll.

As you can see above, the Bonus amount is not included in Y ( Accumulated Previous Remuneration) and also in Yt ( Current Month Additional Remuneration). Thus the P (chargeable income) is only calculated based on Basic salary, estimated basic salary for upcoming months, and eligible tax reliefs.  

Thus the PCB will be calculated without the Bonus being added. This will result in a lower amount of PCB. 

How to correct this if the payout is done?

We need to add the missing amount in the Payroll Figures Takes On ( PFTO) but need to delete it after processing the payroll.

This is because we only wanted to include the missing amount in Y to recalculate back the PCB based on the correct accumulated figures from the previous payroll.

However, filling up PFTO will affect the EA Form figures. Thus it is important to delete the inserted amount after processing the payroll. 

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