In BrioHR system, the salary is subjected to income tax (PCB) deduction. However, the income tax won't be deducted if the total taxable income per annum doesn't reach the minimum eligibility of income tax deduction as per LHDN rulings.
There are certain circumstances whereby the company pays salary without the need to have statutory contributions and income tax deductions. For example, to interns, freelancers, and consultants. Since the PCB cannot be disabled, there is an alternative way.
Below are the step-by-step you need to keep in mind :
1. Firstly, to create a custom pay item and configure it to be non-taxable. For more info, please refer here. For example, created a custom pay item "Consultant Fee" and set it as non-taxable Fixed Remuneration.
2. Set salary in Profile > Compensation tab, don't add any "basic salary" amount in the Salary table because we won't be using amount from this table.
3. Under the Fixed Remuneration table, please add the custom item created in Step no.1, and configure necessary settings including add amount. For more info, please refer here
4. Run a payroll cycle as usual. The basic salary will reflect as RM 0.00 (since we don't set any). Under the "Additions", you will find the pay item added in the Fixed Remunerations from Step no.3
Note: If you customized the pay item as "Fixed Remunerations", it will appear under the 'Fixed Remunerations' table on Profile > Compensation.