How to Add Salary for Interns, Freelancers, and Consultants Without PCB Deduction

In the BrioHR system, salaries are typically subject to income tax (PCB) deductions. However, if an individual's total taxable income does not meet the minimum threshold for income tax deductions as per LHDN regulations, no PCB deduction will apply.

In certain cases, such as payments to interns, freelancers, and consultants, the company may choose to pay salaries without statutory contributions and income tax deductions. Since the PCB cannot be disabled directly in the system, an alternative method is required.

Follow these steps to manage salary payments without PCB deductions:

1. Create a Custom Pay Item:
   • Start by creating a custom pay item and configuring it to be non-taxable. For example, you can create a custom pay item named "Consultant Fee" and set it as non-taxable Fixed Remuneration. For detailed instructions, refer to this guide.
2. Configure Salary Details:
   • Go to Profile > Compensation tab and enter the salary details. Do not add any amount to the "basic salary" field in the Salary table, as this amount will not be used.
3. Add Custom Pay Item:
   • In the Fixed Remuneration table, include the custom pay item created in Step 1. Ensure that all necessary settings are configured and add the appropriate amount. For more details, refer to this guide.
4. Run Payroll Cycle:
   • Proceed with the payroll cycle as usual. The basic salary will display as RM 0.00 (since no amount was entered). Under "Additions," you will see the custom pay item listed in the Fixed Remunerations section from Step 3.

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