Guide: How to Use PCB Calculator 2024

Guide: How to Use PCB Calculator 2024

The PCB (Potongan Cukai Berjadual) Calculator 2024 is an essential tool provided by LHDN Malaysia to help employers accurately compute monthly tax deductions for employees. This guide walks you through each step to calculate PCB, especially for employees who were not employed earlier in the year.

Step 1: Access the PCB Calculator

1. Go to the Official PCB Calculator Website: Open your browser and go to Inland Revenue Board`s Kalkulator PCB.
   
   
2. Select Employment Status: Choose “Previously Not Employed in Current Year” if the employee has started employment with your company this year.
   
   
3. Select Calculation Year: Ensure that “MTD Calculation Year” is set to 2024.

Step 2: Enter Employee Personal Details

Fill in the employee’s personal details accurately:

1. Name: Enter the employee’s full name.
   
   
2. New Identity Card No.: Provide the employee’s NRIC or passport number.
   
   
3. Month: Select the month for which you’re calculating PCB. Or choose January as the month for your first calculation of the year
   
   
4. Marital Status: Choose the employee’s marital status from the dropdown menu.
   
   
5. Residency Status: Select either “Resident” or “Non-Resident” based on the employee’s tax residency.
   
   
6. Disabled Status:
   • Mark “Yes” or “No” if the employee or their spouse is a disabled individual.
     
7. Number of Children: Enter the number of children claimed by the employee based on eligibility:
   • (a) Children under the age of 18.
   • (b) Children 18 and above, still studying.
   • (c) Children above 18 studying full-time in a diploma program in Malaysia or degree program outside Malaysia.
   • (d) Disabled child.
   • (e) Disabled child studying at the diploma level or higher.

Step 3: Input Current Month’s Remuneration

Enter details of the employee’s remuneration for the current month:

1. Current Month’s Remuneration: Enter the employee’s gross monthly salary and any other regular taxable income.
   
   
2. Current Month’s EPF and Other Approved Funds: Enter the amount contributed to EPF or other approved funds (up to RM4,000 per year).
   
   
3. Benefit-In-Kind (BIK): If the employee received any benefits-in-kind (e.g., company car, medical benefits), enter the value here.
   
   
4. Value of Living Accommodation (VOLA): If the employee was provided with accommodation (e.g., housing), enter its value here.
   

The calculator will automatically compute the Total net current month’s remuneration based on these entries.

Step 4: Enter Current Month’s Additional Remuneration (If Applicable)

If the employee received any additional, non-regular income, enter the amounts in this section:

1. Additional Income Types:
   • (a) Bonus.
   • (b) Arrears or back pay.
   • (c) Commissions (if not paid monthly).
   • (d) Gratuity.
   • (e) Compensation.
   • (f) Director’s Fee (if not paid monthly).
   • (g) Income tax paid by the employer on behalf of the employee.
   • (h) Other additional payments.
     
     
2. Total Additional Remuneration: The calculator will sum all the additional remunerations.
   
   
3. Additional Remuneration’s EPF: Enter any EPF contribution related to additional income (up to RM4,000 per year).
   
   
4. Net Additional Remuneration: The calculator will subtract EPF contributions from total additional remuneration to determine the net additional remuneration.

Step 5: Calculate PCB

1. Review Entries: Double-check all entries in the personal, remuneration, and additional remuneration sections for accuracy.
   
   
2. Click “Calculate”: Scroll to the bottom and click the Calculate button. The system will generate the PCB deduction amount for the selected month.
   

The Calculation Result section will show the PCB deduction for the month, rounded to the nearest 5 cents.

Step 6: Review the Calculation Result and Options

After calculating, the Calculation Result section will display the PCB amount. You have several options:

1. Print HTML or PDF: Choose to print a record of the calculation in HTML or PDF format.
   
   
2. Calculate Next Month: If there are no changes in the employee’s salary or other details, click Calculate Next Month to carry forward accumulated values and proceed to calculate PCB for the following month.
   
   
3. Reset: Use this option to clear all entries and start a new calculation.
   
   
4. Out: Click to exit the calculator.

Step 7: Calculate for the Following Month (Using “Calculate Next Month”)

If you need to calculate PCB for the next month (e.g., February):

1. Click “Calculate Next Month” after completing the calculation for the current month.
   
   
2. The calculator will retain the employee’s details and bring forward the Accumulated Remuneration/MTD/Rebate/Deduction values from the previous month.
   
   
3. Verify the accumulated values and make any necessary adjustments for changes in remuneration.
   
   
4. Update Current Month’s Remuneration if there are changes, then click Calculate to compute the PCB for the next month.

Final Notes

Using the Calculate Next Month function ensures that accumulated values (e.g., remuneration, EPF, BIK, VOLA) are carried forward, providing continuity and accuracy for monthly PCB deductions.

Repeat these steps each month to maintain compliance with Malaysia’s PCB requirements.

FAQs

1. What is PCB, and why is it required?
   • Answer: PCB (Potongan Cukai Berjadual) or Monthly Tax Deduction (MTD) is a system for deducting income tax from employees’ salaries on a monthly basis. It helps employees manage their tax payments by spreading the liability throughout the year, reducing the need for a lump-sum tax payment at the end of the tax year. Employers are required to calculate and remit PCB to LHDN on behalf of their employees.
     
     
2. How does EPF contribution affect the PCB calculation?
   • Answer: EPF contributions reduce the taxable income, which directly impacts the PCB calculation. The higher the EPF contribution, the lower the taxable income, and thus the PCB amount. There is a yearly limit of RM4,000 for EPF contributions that can be used to reduce the PCB.
     
     
3. What if the employee’s salary changes during the year?
   • Answer: If an employee’s salary changes during the year (e.g., due to a promotion, bonus, or pay adjustment), you should update the Current Month’s Remuneration in the PCB Calculator for the month the change occurs. If the salary change is permanent, ensure that the updated remuneration is reflected in each following month.
     
     
4. Do I need to recalculate PCB every month?
   • Answer: Yes, PCB needs to be recalculated every month to reflect any changes in the employee’s salary, additional income, or tax reliefs. Use the Calculate Next Month function to carry forward accumulated values for accurate, continuous calculations each month.
     
     
5. What is the difference between Benefit-In-Kind (BIK) and Value of Living Accommodation (VOLA)?
   • Answer: Benefit-In-Kind (BIK) includes non-cash benefits provided by the employer, like a company car, medical benefits, or free meals, while Value of Living Accommodation (VOLA) refers specifically to housing or living accommodations provided by the employer. Both BIK and VOLA are added to the employee’s taxable income and impact the PCB calculation.
     
     
6. How do I handle additional income, such as a bonus or commission?
   • Answer: Enter additional income like bonuses or commissions in the Current Month’s Additional Remuneration section of the PCB Calculator. These additional amounts will be added to the month’s remuneration, and PCB will be calculated based on the new total.
     
     
7. What if an employee claims children as dependents midway through the year?
   • Answer: Update the number of children claimed by the employee in the PCB Calculator as soon as the change occurs. This will impact the employee’s tax reliefs and reduce the PCB amount accordingly in the following months.
     
     
8. Can I use the PCB Calculator for part-time or contract employees?
   • Answer: Yes, the PCB Calculator can be used for part-time and contract employees if they meet the income threshold for PCB deductions. Just enter their monthly income and other required details. However, ensure that you only include relevant allowances and benefits specific to part-time or contract work.

Simplify Payroll Management with CentralHR Payroll System

Using the PCB Calculator ensures accurate monthly tax deductions and compliance with LHDN guidelines. However, manually calculating PCB can be time-consuming, especially for businesses with multiple employees or complex payroll structures. That’s where a reliable payroll system like CentralHR Payroll System can make a significant difference.

With CentralHR Payroll System, you can automate PCB, EPF, SOCSO, and EIS calculations based on the latest tax rules, reducing manual effort and the risk of errors. The system also manages additional remunerations such as bonuses and commissions, generates payroll reports, and ensures full compliance with Malaysian employment and tax regulations.

By streamlining payroll processes with CentralHR, you can save time, improve accuracy, and focus on more strategic HR functions. Whether you’re running a small business or managing payroll for a large organization, CentralHR Payroll System is your trusted solution for efficient payroll administration.

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