[SPONSORED] Free PCB Calculator | Kalkulator for your income tax planning
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At the mid of last month (September 2018), LHDN sent me a “tax-saman” letter dated early August 2018. Apparently, I owe the government some money for 2014!? The auditors must have been working so fast and efficiently that the mistake was only found four years later. I am confused and a bit furious because I have been truthful with my income tax claim (and make sure I don’t miss a rebate, of course!). Furious because I am only allowed to make a complaint within 30 days of the letter, and the postal arrived later than 30 days.
The letter did not tell me what went wrong, but there’s a sum that they will deduct from my payroll for the next few months. That’s a whip on my cash flow and budget, particularly for the coming year-end new year season and how my expenses have risen in the past quarter.
So, I decided to go ahead when PayrollPanda contact me to try out their free PCB calculator. There are other PCB calculators around, for example this one by LHDN. No, a PCB calculator probably won’t save you money. We can’t avoid tax, and we have to pay the right taxes. But I hope it would help you plan your cash flow better. It sucks to get a big bill when the tax season kicks in.
To my surprise, the PCB calculator by PayrollPanda is easy to use and quick to get an assessment. They even email a copy of the “payslip” to you if drop your email. It’s a nice free feature to generate formal payslip for start-up and business with 2-3 employees. I find it handy to benchmark with your official pay slip to know if your PCB is overcharged or underpaid. The form is a preset template, and you just need to select your residence status, married status, number of dependents and your gross pay. The EPF, SOCSO and EIS can be added manually or or automatically calculated, and you will get your estimated PCB deduction instantly.
I tested the calculator with my past, present and future (one can dream) pay and I would give credit to my HR and accounts team that my PCB deduction was precisely the same as the calculator. They didn’t miss a spot! (At least not for this year)
Does your PCB deduction affect your budget?
If you found out that you are paying less, it pays to pre-plan and save up any possible taxes that you need to pay soon. I have an expatriate friend that only pay RM30+/month for PCB, and I don’t think he’s that underpaid that he ends up skipping all the lunch dates and functions when the assessment comes.
Got a surplus?
Send a request for HR to reduce your PCB and free up the precious cash you work so hard for. Or better yet, send them this link to get everyone’s PCB deduction right.
I wish we could add on the expected deductions we get like PRS-fund, medical insurance, lifestyle rebates and then get HR to reduce the monthly deduction. I believe in optimising the potential of my resources. Cash in hand has a lot of potential. Save more money in FD and pay the additional to LHDN after the income tax assessment.
PayrollPanda is a payroll and HR software made for entrepreneurs and SMEs. For just RM5-7/employee/month, they provide accurate payroll calculations, payslips and reports, generate payment files for processing and leave management for your company. To find out more you can visit their site or contact them at firstname.lastname@example.org.