To process Payroll in ByondHR, the following steps needs to be follow:

1. Define Payroll Period

2. Create new Salary Component (optional)

3. Create Salary Structure with Salary Components (Earnings and Deductions)

4. Assign Salary Structures to each Employee via Salary Structure Assignment

5. Processing Payroll

1. Payroll Period

Payroll Period, in ByondHR, is a period for which Employees get paid for their occupation with the Company. Payroll period helps you calculate tax for a specific period based on applicable Income Tax Slab.

2. Salary Component

This document allows you to define each Earning and Deduction component which can be used to create a Salary Structure and subsequently create Salary Slip or Additional Salary. You can also configure the type, condition and formula as well as other settings which are discussed below. You should be able to enable various combinations of the following options to configure each component as it fits your Company / Regional policies.

Earning

Settings	Description
Depends on Payment Days	If enabled, this component's amount will be calculated based on the employee's eligible working days, ByondHR will automatically calculate the pay in proportion of working days deducted by unpaid leave (if any) or missing working days in an incomplete month (if any).
Do not include in total	If enabled, the component's amount won't be added to or deducted from the net pay of the Salary Slip.
Is Tax Applicable	If a component's amount needs to be considered for Tax calculations you will need to enable this option. Payroll Period and Income Tax Slab is required for tax calculations during payroll processing.
Is EPF Applicable	If enabled, the component's amount will be included in the calculation of EPF.
Is SOCSO Applicable	If enabled, the component's amount will be included in the calculation of SOCSO.
Is EIS Applicable	If enabled, the component's amount will be included in the calculation of EIS.
Is HRDF Applicable	If enabled, the component's amount will be included in the calculation of HRDF.
Deduct Full Tax on Selected Payroll Date	If checked and the component is used in Additional Salary, the tax amount applicable on the additional amount will be deducted on the specific payroll month. If not checked, the tax will be distributed over the remaining months of the payroll period. This should be enabled for Bonus Salary Component as full tax shall be deducted for Bonus in the specific payroll month.
Round to the Nearest Integer	If enabled, the component's amount will be rounded to the nearest integer in Salary Slip.
Statistical Component	If selected, the value specified or calculated in this component will not contribute to the earnings or deductions. However, it's value can be used to calculate other components' amount using formula. Before enabling this option, please make sure you have understanding on how to calculate component's amount using formula.
Remove if Zero Valued	If enabled, this component would not be included in Salary Slip if its amount is zero.
Disabled	If selected, the Salary Component will be disabled. A disabled Salary Component cannot be selected during creation of Salary Structure.
Is Flexible Benefit	Flexible Benefits are earning components which Employees can choose to receive on a pro-rata basis or annually when they claim for. If turned on, you can specify the maximum benefit allowed for an employee in a year. You will need to create Employee Benefit Application with the ones they opt for.
Pay Against Benefit Claim	Select this checkbox if Employees can opt to receive flexible benefits when they claim via Employee Benefit Claim. The amount allocated for the component will be paid as the Employee submits an Employee Benefit Claim. Unselect this checkbox if the amount will be dispersed as part of the Employee's salary on a pro-rata basis.
Max Benefit Amount (Yearly)	You can specify the maximum benefit allowed for an employee in a year.
Only Tax Impact (Cannot Claim But Part of Taxable Income)	Such components are those which the company has already paid to the Employee in cash or by some other means, for example a car purchased for the Employee's use. The Employee cannot claim but is liable to pay tax. The amount allocated for this component will be considered while calculating the taxable income of the Employee.

Deduction

Similar settings will not be mentioned in this table.

Settings	Description
Variable Based On Taxable Salary	If checked, the component will be considered as the standard Tax deduction component. Tax will be calculated based on the Income Tax Slab linked to the employee.
Exempted from Income Tax	If checked, the full amount will be deducted from taxable income before calculating income tax without any tax exemption declaration.

3. Salary Structure

Salary Structure represents how Salaries are structured and calculated based on Earnings and Deductions. Salary structures are used to help organizations define salary components entitled by different employee group.

Salary Structure in Malaysia

The payroll system in Malaysia closely resembles that of many other countries. It consists of various components that make up an employee's salary, including:

Components	Descriptions
Basic Pay	The fundamental salary amount earned by an employee.
Allowances	Additional payments provided to employees for specific purposes, such as housing, transportation, or meal allowances.
Perquisites	Non-cash benefits provided to employees, such as medical benefits or company-provided accommodations.
Overtime	Additional compensation for hours worked beyond regular working hours.
Incentives	Performance-based bonuses or rewards given to employees for achieving targets or meeting specific goals.

Additionally, both the employer and the employee contribute to the payroll. This contribution is deducted from the employee's gross salary, and it includes various statutory deductions, including:

Contributions	Descriptions
Social Security Organization (SOCSO)	Contributions towards social security benefits, including medical and disability coverage for employees.
Employees Provident Fund (EPF)	Mandatory savings scheme where a portion of the employee's salary is contributed towards retirement savings.
Employee Insurance Scheme (EIS)	Contributions made to provide employees with financial assistance in the event of job loss or retrenchment.
Human Resources Development Fund (HRDF)	Contributions towards employee training and development initiatives aimed at enhancing skills and competitiveness.

All of the mentioned Salary Component has preset into your ByondHR system, You can add the components into your salary structure as per your company payroll setup.

4. Salary Structure Assignment

Salary Structure Assignment allows you to assign salary structure and specify the base pay eligible for each employee. It is important that you set the base salary here as this will be the base salary used for calculations as per the Salary Structure.

5. Processing Payroll

You can either bulk process payroll for Employees under a department, branch or designation or process payroll individually by creating Salary Slips for each employee.

Payroll Processing Using Payroll Entry

You can also create salary slip for multiple employees using Payroll Entry.

Creating Salary Slips Manually

Once the Salary Structure is created and assigned to employees via Salary Structure Assignment, you can make a Salary Slip individually.