Employer and Employee Contribution Setup

1
  1. How do I properly setup the Employer Contribution? I wasn’t sure when comes to the Payslip Contribution Item. What to choose for the Expense Account and Liability Account?

Currently, I have it setup this way:
Under the Chart of Accounts > Salary, I created an account named Employer Contribution 4.24% (as an expense). Should I create an account in the Liability Account?

  1. For the Employee Contribution 2%, it is treated as Payslip Deduction Items or Payslip Contribution Items?

  2. When I release the EPF to the government, how do I go about?

2
  1. Employer Contribution - Setup the “Payslip Contribution” Item as follows

  1. Employee Contribution - Setup the “Payslip Deduction” Item as follows (a liability account)

  1. So the BS Liability section would look like this.

You could combine the two Super Contribution accounts into one, your call.

  1. As for the EPF, can’t assist without further detail.
3

Thanks,

The EPF is basically the combination of the Employer 4.24% and Employee 2% Contributions.
When I release the contribution funds to the Government, should I Spend Money from the bank account against the Liabilities accounts?

4

Yes

5

Thanks.