To create a pay element for Gratuity in EasyPay, please follow the steps below:
Gratuity (Taxable)
Go to the Payroll module.
Click Setup, Pay Element Setup and click New.
Enter the Pay Element ID and Description as Gratuity.
Select Item Type as Allowance, and Click Next.
Select One Grouping as None of the above, Click Next.
Select Standard Allowance and click Next.
Select Free and click Finish.
Move the Gratuity code over and click Save.
Gratuity (Non-Taxable)
Go to the Payroll module.
Click Setup, Pay Element Setup and click New.
Enter the Pay Element ID and Description as Gratuity NonTaxable.
Select Item Type as Allowance, and Click Next.
Select One Grouping as None of the above, Click Next.
Select Standard Allowance and click Next.
Select Free and click Finish.
Move the Gratuity code, Non-Taxable Code, and Tax Reporting Code over and click Save.
Note: You need to manually compute the tax exempted based on the staff services years and multiply by RM10000, and insert the amount into Gratuity (Non-Taxable).