Payroll Tax Computation
A 1-Day Training Programme
Effective January 1, 2009, Computerised Calculation Method was introduced and is applicable if an employer uses a computerised payroll system provided by the software provider or developed/ customised by the employer in accordance with specifications determined and reviewed by the LHDNM.  However, an employer who does not use a computerised payroll system will continue to deduct their employees’ monthly tax using the Schedular Tax Deduction (STD) Method.

This method was subsequently streamlined further in 2010 where employers no longer refer to employees’monthly tax deduction as monthly Schedular Tax Deduction (STD) but Monthly Tax Deduction (MTD) using either the Computerised Calculation Method or the Schedular Tax Deduction Table Method.

However, effective 2013, the Schedular Tax Deductions (STD) Method is no longer applicable and all employers will now be required to reply on either the Computerised Calculations Method or the online PCB E-Kalkulator.Due to these changes over the past few years, many employers have found difficulty in answering their employees’ queries on the sudden increase/ decrease in their monthly tax deductions as well as understanding the new calculations and formula. Thus, this programme is targeted to answer these queries and to enhance the understanding of the new calculations and formula.  

At the end of this one (1) day programme, participants will be able to:
  • Have an understanding of the impact and implication of the new Monthly Tax Deduction using the Computerised Calculation Method and the new Schedular Tax Deduction Table
  • Have an understanding of the Computerised Calculation Method Formula.
  • Learn to compute the Monthly Tax Deduction (MTD) using the formula provided by LHDNM manually.
  • Learn to compute the Additional Remuneration using the formula provided by LHDNM manually.
  • Understand why the new Monthly Tax Deduction (MTD) was implemented and the benefits of its implementation.