Retirement Benefit (goodwill) is not taxable and CPF Payable. Please do as follows to create a retirement benefit.
Go to the Payroll module.
Click Pay Element Setup and click New.
Select Allowance and click Next.
Select None of the above and select Standard Allowance.
Click Next and select Free.
Click Finish then remove Subject to Ordinary and Subject to SDF, arrow over from the right to the left.
Select Non-Taxable Code from the left panel and arrow it to the right.
Click Save.