Admins can quickly update employees’ income tax information via the Payroll > Compensation page

To update income tax information:

1. On the left panel of your admin dashboard, click Payroll > Compensation.

2. Search for the employee's name.

3. On the right of the employee's name, click View.

4. Select Income Tax.

5. Head to the Income Tax section to update the details.

6. Scroll down. Confirm by clicking Confirm.

**Additional information on income tax: 

Resident status:

  • (A) Resident. If you are a resident of Malaysia, the tax relief follows the LHDN employee’s categories. There are 3 categories available: 
  • Category 1 : Single (where RM9000 will be deducted from the gross annual salary)
  • Category 2 : Married and spouse is not working (where RM4000 will be deducted from the gross annual salary)
  • Category 3 : Married and spouse is working (where no deduction applied for individual filing)

  • (B) Non-Resident. Their tax deduction is rather simpler as it is taxed at 30% of the monthly salary. This also means, they are not entitled to any resident’s tax relief such as child relief and lifestyle relief

  • (C) Knowledge Worker. These are for employees who work specifically in the Iskandar region of Johor state, where they will be taxed at a 15% flat rate.

  • (D) Returning Expert. These are Malaysian professionals living abroad and returning to work in Malaysia, where they will be taxed at a15% flat rate as well.

To understand more on how to manage employee compensation, watch this video: