When a new employee joining a company, he is responsible to notify the new employer by declaring previous employment payroll info by submitting TP3 Form, and is new employer responsibility to enter the data as Opening Payroll Data for this employee to ensure accurate PCB Calculation. Without these data, PCB calculation may be wrong and employer will hold responsibility and penalise by LHDN. Beside, we also need to understand what is LHDN Borang TP2 and TP3 Form.
LHDN has created 3 types of TP forms, It is the employer’s responsibility to ensure that their employees receive TP1, TP2 forms, TP3 is the employees responsible to notify the current employer on previous employment incomes upon joining the company. All 3 TP forms were made to ensure employee’s monthly PCB calculations are precise.
What Is The Purpose Of Form TP1?
The TP1 is an income tax form that is given to the employer by the employee to ensure that the MTD (monthly tax deductions) have taken into account the necessary rebates and deductions. The rebates and deductions are for book purchases, insurance, medical expenses and others. The rate of deduction and rebates depends on the approval of the employer. It is the employer’s responsibility to inform their employees to present the TP1 form if needed. No receipts or supporting documents are required when submitting the TP1 form.
What Is The Purpose Of Form TP2?
TP2 is a claim form for the benefits in kind (BIK) provided by the employer. If an employee received Benefits in kind in the form of cars, accommodation, chauffeurs, or other benefits, they are required to fill in this form every year. TP2 is a form that is needed to add the BIK that employees receive as a part of their monthly earnings to determine the PCB amount that they are subjected to. Employees are not allowed to opt out of their decision to include BIK in their PCB calculation within the same year and under the same employer.
What Is The Purpose Of Form TP3?
As per Malaysia Inland Revenue Board (IRB) requirement, employee who newly joined the company during the year shall submit TP3 Form to his/her new employer to notify information relating to his employment with previous employer in the current year.
TP3 form is given to an employer containing information related to their new hired employee’s previous employment in the current year. TP3 contains information regarding the employee’s accumulated deductions while working for the past employer. These details are used to key into the opening payroll for your new employee. It is the employer’s responsibility to inform their employees to present this form if needed.
SQL Payroll System Borang TP1, TP2 and TP3 Form. Setting Opening Payroll For New Join Staff
User can retrieve latest version of TP1. TP2 and TP3 Form via Human Resource-> Maintain Employee->Preview
In this example we assume a new employee starts in May, and work with previous employer from January to April, hence that employee should fill up TP3 Form with January to April info. SQL Payroll System user should key the Opening Payroll for this staff using TP3 form submitted by him.
Log into SQL Payroll System, go to Payroll->Open Payroll->Right Click Empty Space->New Payroll Opening->Enter the Current Year->OK.
Doble Click on the New Join Staff and key in all the opening balance data according to the TP3 Form, such as January to April Salary, EPF, PCB and so on. When finish click the “Save” button.
When you process Payroll. PCB will be automatically calculated according to LHDN PCB Calculator.
SQL Payroll Tutorial Video :