How To: Verify the calculation of staff EPF contribution in Quarto

Article ID: Q-HTPY-0002

Summary

The EPF is a social security institution formed under the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452). It is a federal statutory body under the purview of the Ministry of Finance which provides retirement benefits for members through saving management. The EPF also provides a convenient framework for employers to meet their statutory and moral obligations to their employees.

In Quarto, there are several reports in the Report module which users can generate from the Payroll shortcut to verify the amount of EPF contribution by employer and employee. The steps below describe how to verify the calculation of staff EPF contribution in 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 select the staff required.
3. Click the button.
4. In the Staff Setup form, scroll to the EPF section to check if the staff's EPF contribution method is set By Category or By Fixed Percentage. The method shown below is By Category.

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.

7. Click the Generate Report button to view the report.

   
   
   Note:
   After running the Checkroll Proforma Process, the system will generate a set of reports for checking purposes.

8. Since the staff's contribution method is by category, in the Quarto Menu Bar, navigate to Report > Report Menu > Payroll > Payroll Statutory > Employee Statutory Contribution Schedule.

    

9. Select the EPF/KWSP for 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.

Based on the staff's salary of RM2,600, the staff's monthly EPF contribution shown in the EPF schedule is RM286 while employer contribution is RM338.

Note:
If the staff's EPF contribution is set By Fixed Percentage in Quarto's Staff Setup, the system takes the upper range of the salary based on the Employee Statutory Contribution Schedule and multiply it by the percentage set in Staff Setup. The final contribution amount is rounded off to the nearest ringgit. 

For example:
Staff's EPF percentage is set to 15% and their income subject to EPF is RM8,850. Based on the schedule, the upper range of 8,850 is 8,900.
• 8,900 x 0.15 = 1,335

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