Difference between MTD Schedule and PCB Online Calculator
The Online PCB calculator rounds up to nearest 0.05, i.e. 0.06 will become 0.10. The MTD schedule on the other hand rounds to the nearest 0.05, therefore 0.06 will become 0.05. Because of this, the online calculator will sometimes be higher by RM0.05.
The value before rounding for PCB result for RM3560 is 19.66.
IF you check the result on the MTD schedule, the value shown will be RM19.65, while the PCB Online Calculator will show a result of RM19.70.
The other difference between the MTD Schedule and the Online calculator is that the MTD schedule only shows results in increments of RM5.
Using the PCB Online calculator, the MTD schedule values can be simulated by finding the answer for the amount rounded up to the next RM5.
For example, for 4221.67, find the result for 4225.00, i.e. the value rounded up to the next RM5.
As stated earlier, despite using this method, there can will still be a variance of RM0.05 in some cases due to the different rounding used.
Using the right EPF values for PCB calculations
The way EPF can is used with the MTD schedule is different from the PCB online calculator. In using the MTD Schedule, it is recommended that the EPF value deducted be limited to RM500. This is to ensure that the total for the year does not accidentally exceed RM6000. Although it is not legally binding to limit to RM500 every month, it should not exceed RM6000 a year.
This error is especially possible when the salary is close to RM4,000.
On the other hand, if a staff has a salary of RM4000 for the whole year, the total EPF will be 440 x 12 = 5280.
If the staff receives one month bonus of RM4000, the total annual EPF will be 5280+440 = 5720.
Therefore it is perfectly valid to deduct RM880 EPF for the bonus month.
The staff receives 2 month bonus = RM8000
EPF = 880
Total annual EPF = 5280+880 = 6160 which exceeds RM6000.
Despite this, you can still deduct the balance up to RM6000, i.e. RM440 + (RM6000 – RM5280) = RM440 + RM720 = RM 1,160.
The problem is if you are paying the bonus in the beginning of the year and the staff gets and increment or some other incentive later in the year, the EPF will go over the RM6000 limit.
To make sure this error does not happen, it will be necessary to track the year to date EPF values which becomes additional work. Therefore it is often safer to limit the monthly EPF deduction to RM500 so that the deducted amount does not accidentally exceed RM6000.