MPF Voluntary Contribution Setup

Make sure you have completed following session(s)

l   Create Payroll Profile

l   MPF Setup

 

This section describes how to setup the calculation of MPF voluntary contribution (VC).

 

Steps

1.           Open and edit an exising “Salary Profile”

 

2.           Click [MPF] Tab

 

3.           In the Voluntary Contribution, enable/disable VC calculation for employer / employee accordingly.

 

4.           If VC is enabled, select one of the calculation method below :

Method

Description

Formula

 

where

M = entered amount

N = entered percentage

Income = Selected type of Income

Example

Fix Amt.

Voluntary contribution(VC) in fixed amount

VC=M     

Entered fix amount = $2,000

 

VC = $2,000

V.C.%

Calculate voluntary contribution(VC) with fixed %

 

VC=Income x N%

Income = $20,000

N% = 5%

 

VC = $20,000 x 5% = $1,000

 

MC+VC%

Calculate voluntary contribution(VC) as the amount which over the upper limit of mandatory contribution (MC)

VC=( Income x N% - MC )

Income = $40,000

N% = 5%

MC=$1,500   (Upper limit reached)

 

VC = $40,000 x 5% - $1,500 = $500

 

Individual VC%

Calculate voluntary contribution(VC) with fixed % defined by individual staff

VC=Income x Individual N%

Income = $20,000

N% = 5%    (where N is defined in staff profile)

 

VC = $20,000 x 5% = $1,000

MC+ Individual VC%

Calculate voluntary contribution(VC) with fixed individual % after deduct mandatory contribution (MC)

VC=( Income x Individual N% - MC )

Income = $40,000

N% = 5%       (where N is defined in staff profile)

MC=$1,500   (Upper limit reached)

 

VC = $40,000 x 5% - $1,500 = $500

 

 

For the calculation method “Individual VC%” and “MC+ Individual VC%”, please input the “Voluntary Contribution %” in screen “Employee Setup” > “MPF Plan” for each employee.

 

 

 

5.           Select the “Income mode”. You may choose using “relevant income” or a particular salary item as the “Income” to calculate voluntary contribution.

 

6.           Input “Max. Contribution” amount if any (i.e. Enter 0 means no limit). The calculated voluntary contribution amount will NOT over this maximum value.

 

7.           Enable/Disable the option “No contribution if MC = 0”. This option should be enabled if you do not want to have VC when no MC is required, for example, a new join staff who was employed less than 60 days.

 

8.           Click button to save the settings.

  

 

See also