Disclaimer: The content of this article pertains to the altHR payroll module (not PayrollPanda). As of this date, the altHR payroll module has been discontinued as we form a new partnership with PayrollPanda to bring forth enhanced payroll solutions for our users.

In this article, we will guide you to understand more about the EA fields. If you wish to know how to set the EA field for the pay item, please read the article HOW TO ADD NEW PAY ITEMS IN PAYROLL SETTING

What is EA fields?

EA fields is referring to the fields that are required in the EA form format by LHDN, a standard EA form has 6 parts of information needed to fill in:-

  • A: Particular of employee
  • B: Employee income, benefits and living accommodation 
  • C: Pension and others
  • D: Total deductions on Income Tax & TP1 relief
  • E: Contributions paid by employee to approved provident/ pension fund and SOCSO
  • F: Total tax exempted allowances/ perquisites/ gifts/ benefits

Why is it important to set EA Fields to my pay items?

As per LHDN, the employer is liable to declare and record all taxable income and benefits in EA forms and provide a copy of EA form to the employee not later than the end of February of the following year to allow the employee to fill for tax return (also known as tax filing or e-filing). 

If you are setting up a pay item and do not set the EA field under the pay item, it will cause a discrepancy in the figures during the tax return, and a wrong tax return may cause the authorities to investigate, and if found guilty, the employer may face a fine or imprisonment.

Therefore, when you are setting up the pay item, please check if the pay item should be declared on EA form. We will list the detailed EA field & its description below which are available in altHR's payroll module.

EA Field & Description

EA FieldDescription
B.1(a)Gross salary, wages, or leave pay (including overtime)
B.1(b)Fees (including Director Fees), commission or bonuses
B.1(c)Gross tips, perquisites, award/ reward, or other allowances
B.1 (d)Income tax borned by employer in respect of employee
B.1(e)Employee Share Option Scheme (ESOS)
B.3Benefits in Kind
B.4Value of Living Accommodation (VOLA)
B.5Refund from unapproved pension
B.6Compensation for Loss of Employment
C.2Annuities or other periodical payment
F1Petrol Allowance, traveling allowance or toll payment or any of its combination to complete official duties
F2Child care allowance in respect of children up to 12 years of age
F3Gift, or fixed line telephone, mobile phone, pager or PDA including the cost of registration and installation registered in the name of employer/employee
F4Monthly bills for fixed-line telephone, mobile phone, pager, PDA or broadband subscription including registration and installation registered in the name of employer/employee
Perquisites provide to the employee in pursuant of past achievement award, service excellence award and long service award
F6Parking rate and parking allowance
F7Meal allowance received in regular basis and given at the same rate to all employees
F8Subsidy of interest of housing, education or car loan

*Note: Part A (Particulars of Employee) and Part E (Contributions paid by employee to approved provident/ pension fund and SOCSO) are automatically captured by the system when the user is setting up employee details and running payroll using altHR- user does not need to set the EA field on Part A & E.

How do I check which EA field is correct for my company's pay item?

There are a few methods you can refer to:

  1. For EXISTING pay item: Cross check with your past year(s) EA form and see the pay item attached to which EA field, and if there is any tax exemption limit
  2. For NEW pay item: Reach out to LHDN at 03-8911 1000 (Hasil Careline) or LHDN Customer Feedback Form