Quarto Knowledge Base How-To Publication (7 JAN 2025)

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

Article ID: Q-HTCK-0002

Summary

Employees' Provident Fund (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's Report module, users can generate the EPF report to verify the amount of EPF contribution by employer and employee. The steps below describe how to verify the calculation of worker EPF contribution in Quarto.

Procedure

  1. In the Quarto Menu Bar, navigate to Master File > Checkroll > General Worker Setup.
  2. Go to the EPF section to view the worker's EPF contribution method. The method used is By Category.


  1. Go back to the Menu Bar and navigate to Report > Report Menu > Checkroll > Checkroll Statutory > Worker Statutory Contribution Check List.

  1. Use the drop-down boxes in the 'filter' pane on the right to filter the report. Once completed, click the Generate Report button to view the report.

 

Note:
After running Checkroll Proforma Process, Quarto generates a set of reports for checking.

  1. Since the workers contribution method is set to By Category, in the Quarto Menu Bar, navigate to Report > Report Menu > Checkroll > Checkroll Statutory > Employee Statutory Contribution Schedule.
  2. Select EPF/KWSP from the Contribution Type drop-down list and set the serial number/year and category before generating the report.

From Step 4, the worker's monthly pay is RM2,600. Based on the EPF schedule, the worker's contribution is RM286 while the employer's contribution is RM 338.

Note:
If the staff's EPF contribution is set By Fixed Percentage in Quarto's General Worker 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 General Worker Setup. The final contribution amount is rounded off to the nearest ringgit. 

For example:
Worker's EPF percentage is set to 11% and their income subject to EPF is RM2,605. Based on the schedule, the upper range of 2,605 is 2,620.
• 2,620 x 0.11 = 288.20, or 283

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