In Malaysia, long service award more than ten years there will RM 2000 tax exemption where else service year less than ten years or equal will be fully taxable. Please do as follows to create two type of long service award:
Long Service Award Taxable
Go to Payroll module, Pay Element Setup, click New
Key in the Pay Element ID and Description eg. LSA Taxable
Click Next and select Allowance
Select None of the above, and Next
Select Standard Allowance, and Next
Select Method as Free, click Finish
Move over Subject to EPF, SOCSO, EIS then click Save
Long Service Award Non- Taxable
Go to Payroll module, Pay Element Setup, click New
Key in the Pay Element ID and Description eg. LSA Non- taxable
Click Next and select Allowance
Select None of the above, and Next
Select Standard Allowance, and Next
Select Method as Free, click Finish
Move over Subject to EPF, SOCSO, EIS and Perquisite Code then Save