Here’s a quick guide on how you can record Employee Salary Payout using Financio. Please note, we highly recommend businesses to utilize a payroll system to be more effective. Nevertheless, here’s a work around.
First off, you will need to create several new Expense Categories. To do so, go to Control Panel > Categories > New Categories > Expenses.
Once you’ve created the relevant Expense Categories, you are now ready to record. There are 2 key steps in recording for salary payouts:
- Withdrawals – Records Net Salary & Claims
- Journal Entry – Record Others: EPF, SOCSO & STD.
Go ahead and create a new Withdrawal under Transactions.
Indicate the Employee details as well as the Bank/Cash on Hand that you will be issuing the salaries from.
Next, input the Net Salary of employee (Net Salary = Basic Salary – EPF – SOCSO – STD) and total claims.
Once done, hit the ‘save & approve’. Next, go ahead and create a journal entry and record the amounts into the following expense categories: EPF – Employee, EPF – Employer, SOCSO – Employee, SOCSO – Employer, Standard Tax Deductions (STD).
The final step will be to balance out the journal with the account used for issuing the relevant payments. In this case, RHB Bank.
Once completed, hit ‘save & approve’ and you’ve successfully recorded your issuing of employee salary.
For EPF, SOCSO, LHDN etc, simply create a new Expense Category for each item. To do so, go to Control Panel > Categories > New Category.
Once you've created the expense category for the respective items, go ahead and record the accounts via the journal entry feature.
A few additional notes:
- Recording of EPF, SOCSO and STD can be done as a total to reduce number of entries.
- While categories such as SOCSO – Employee and SOCSO – Employer can be collapsed into a single SOCSO category, we encourage users to have the separated for better future tracking.