If your Perquisite payment is reimbursed outside of your payroll system and you need to record it in the system each month for tax computation, and this perquisite does not have the capping of RM20k in a year, then you need to create two pay elements. One pay element will reflect the taxable amount in the pay record, and the other pay element will deduct the amount from the employee's pay record (since it is reimbursed outside payroll).
You can set these two pay elements as recurring setups for the system to automate for you every month. Please follow the steps below to do this:
Create a Taxable Pay Element
Go to the Payroll module.
Click Pay Element Setup and click New.
Enter the Pay Element ID as Perquisite Reimbursement.
Select Allowance and click Next.
Select None of the Above and click Next.
Select Standard Allowance and click Next.
Select Free and click Finish.
Create a Non-Taxable Deduction Pay Element
In the Payroll module, click Pay Element Setup and click New.
Enter the Pay Element ID, e.g., Perquisite Reimbursement Ded.
Select Deduction and click Next.
Select None of the Above and click Next.
Select Standard Deduction and click Next.
Select Free and click Finish.
Set as Recurring for Perquisite Reimbursement
In the Payroll module, click Modules and select Recurring Setup.
Select the employee and click New.
Select the pay element Perquisite Reimbursement.
Select Recur Amount and enter the monthly reimbursed amount in the Amount.
Enter End Counter as 0 and click Confirm.
Set as Recurring for Perquisite Reimbursement Deduction
In the Payroll module, click Modules and select Recurring Setup.
Select the employee and click New.
Select the pay element Perquisite Reimbursement Deduction.
Select Recur Amount and enter the monthly deduction amount in the Amount.
Enter End Counter as 0 and click Confirm.