How To: Verify staff and worker EPF fixed percentage calculation in Quarto (July 2019 Update)

Article ID: Q-HTPC-0009

Quarto Iteration:  17

Summary

With the latest release of Quarto, EPF Fixed Percentage calculation has been updated to reflect EPF members' contribution in accordance with the updated Jadual Kadar Caruman KWSP. This update ensures that EPF deduction for staff and worker remuneration is computed accurately to prevent underpayment (or overpayment) of contribution for long-term retirement benefits through saving management.

Quarto's EPF Fixed Percentage calculation update is applicable for staff and workers that are subject to EPF contribution via the Fixed Percentage contribution method within the plantation operating units and/or the affiliated companies that use Quarto for plantation management. The steps in this document describe how to verify staffs' and workers' EPF fixed percentage calculation with the latest release of Quarto.

Procedure

1. In the Quarto Menu Bar, navigate to Master File > Payroll > Staff Setup.

2. In the Staff Setup table, go to the EPF tab and verify if the staff's EPF contribution method (column name: EPF CONT. Method) is set By Category or By Fixed Percentage.
3. Select the staff record from the table, and then click the  button.
4. In the Staff Setup form, scroll to the EPF section and set the EPF details accordingly. From the screenshot below, the Employee contribution rate is set to 11% while the Employer contribution rate is set to 13%.

5. Go back to the Quarto Menu Bar and navigate to Report > Report Menu > Payroll > Payroll Statutory > Staff Statutory Contribution Check List.
6. Use the drop-down boxes to fill in the required criteria for Operating Unit, Year, Month, Department, and Employee.
7. Click the Generate Report button to view the report.

Sample of the Staff Statutory Contribution Check List report in Quarto

Note:
After running the Payroll (or Checkroll) Proforma Process, Quarto generates a set of reports for verifying purposes.

Using the Employee Statutory Contribution Schedule to verify the correct amount for EPF contribution

1. Since the staff's contribution method is By Fixed Percentage, in the Quarto Menu Bar, navigate to Report > Report Menu > Payroll > Payroll Statutory > Employee Statutory Contribution Schedule.
2. Select the EPF/KWSP option from the Contribution Type drop-down list and set the serial number/year and category in the Serial Number/Year and Category drop-down lists respectively before generating the report.

Calculation Method

Use the upper bound of the staff's total income subject to EPF (based on the contribution schedule) to multiply with the fixed percentage specified in Staff Setup. Then, round it up to the nearest ringgit to get the final contribution amount. For example:

The upper bound amount based on the EPF schedule is RM3,140. Hence,

• Employee contribution
  RM3,140 x 11% = RM345.40 (when rounded up, the amount becomes RM346).

• Employer contribution
  RM3,140 x 13% = RM408.20 (rounded up to RM409).
  
   
  EPF Schedule (Jadual Kadar Caruman KWSP)