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Saturday, June 12, 2010

How To Calculate PCB or Scheduled Tax Deduction (STD) for Salary and Bonus

While watching World Cup and with the pay day coming in within a week, I'm thinking maybe I should do some write up on how the PCB or STD (Scheduled Tax Deduction) is calculated monthly as this has been a question mark for me whenever I am planning the budget for the subsequent month.

Most people will have doubt on how the PCB or STD is calculated especially during the bonus month. In fact, most of us will be anxiously to know the tax deduction to have proper view how much we can spend during that month. So, it is always best for us to know how the PCB are calculated so that we can plan ahead.

Here is how our STD or PCB are calculated.

Assuming person E is single and is drawing monthly salary of RM3,000 and contributing 11% from his monthly salary to EPF.

Salary = RM3,000
EPF deduction = RM330
(Note: The maximum total EPF deduction allowed for PCB or STD calculation is RM500 (RM6,000 / 12 = RM500))

Salary for PCB calculation
= Gross salary - EPF deduction
= RM3,000 - RM330
= RM2,670

According to PCB 2010 rate, the PCB for RM2,670 is RM24

So, every month E will be getting
= Gross salary - EPF deduction - PCB (or STD)
= RM3,000 - RM300 - RM24
= RM2,676

Now, assume that E is getting RM3,000 in bonus, how much would his PCB on that month?
Bonus = RM3,000
EPF deduction = RM330
Maximum available EPF deduction for PCB calculation = RM500, so the EPF deduction for bonus PCB calculation = RM500 - RM330 = RM170, instead of RM330

Bonus for PCB calculation
= Gross Bonus - EPF deduction
= RM3,000 - RM170
= RM2,830

The amount for bonus PCB calculation has a formula like the following:-
= (1/12 x net_bonus) + net_salary
= (1/12 x RM2,830) + RM2,670
= RM235.83 + RM2,670
= RM2,905.83

According to PCB 2010 rate, the PCB for RM2,905.83 is RM42

PCB for bonus = (RM42 - RM24) x 12 = RM216

Total PCB for the month with bonus
= PCB for salary + PCB for bonus
= RM24 + RM216
= RM240

So, during the bonus month,
Gross salary + bonus = RM3,000 + RM3,000 = RM6,000
EPF deduction = RM660
PCB (or STD) = RM24 + RM240 = RM264

E will be getting
= Gross salary + bonus - EPF deduction - PCB (or STD)
= RM6,000 - RM660 - RM264
= RM5,076

Why not try out the calculation with your salary and let me know whether the calculation and formula is accurate by checking your payslip. I am sure I will check it this month :D

Credit to The 8th Voyager

Scheduled Tax Deduction (STD) or PCB for the Year 2010

When you look at your payslip every month since the second half last year, do you realized that the Scheduled Tax Deduction, STD (or Potongan Cukai Bulanan, PCB) is higher compare to previously? I, myself realized that and after doing some research I realized that the Inland Revenue Board (IRB) of Malaysia (or Lembaga Hasil Dalam Negeri, LHDN) has come out with higher rate back then.

This year again, we will have new PCB rate and the rate is lower compares to the 2009 PCB rate. Click the links below to get the rate for both PCB 2009 and PCB 2010 and do some comparison.

Click here to download the PCB 2009 rate

Click here to download the PCB 2010 rate

I might be posting on how to calculate the PCB or STD in the future.

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Sunday, June 6, 2010

Commodity Watch

Information on Light, Sweet Crude Oil Futures Trading

Crude oil began futures trading on the NYMEX in 1983 and is the most heavily traded commodity.

Trading unit: Crude Oil Futures trade in units of 1,000 U.S. barrels (42,000 gallons). Options: One NYMEX Division light, sweet crude oil futures contract

Trading Months: Crude Oil Futures trade 30 consecutive months plus long-dated futures initially listed 36, 48, 60, 72, and 84 months prior to delivery. Additionally, trading can be executed at an average differential to the previous day’s settlement prices for periods of two to 30 consecutive months in a single transaction. These calendar strips are executed during open outcry trading hours. Options: 12 consecutive months, plus three long-dated options at 18, 24, and 36 months out on a June/December cycle.

Price Quotation
Crude Oil Futures are quoted in dollars and cents per barrel.

Minimum Price Fluctuation: $0.01 (1¢) per barrel ($10 per contract).

Maximum Daily Price Fluctuation
Futures: Initial limits of $3.00 per barrel are in place in all but the first two months and rise to $6.00 per barrel if the previous day's settlement price in any back month is at the $3.00 limit. In the event of a $7.50 per barrel move in either of the first two contract months, limits on all months become $7.50 per barrel from the limit in place in the direction of the move following a one-hour trading halt.

Options: No price limits.

Last Trading Day
Crude Oil Futures: Trading terminates at the close of business on the third business day prior to the 25th calendar day of the month preceding the delivery month. If the 25th calendar day of the month is a non-business day, trading shall cease on the third business day prior to the last business day preceding the 25th calendar day.
Options: Trading ends three business days before the underlying futures contract.

F.O.B. seller's facility, Cushing, Oklahoma, at any pipeline or storage facility with pipeline access to TEPPCO, Cushing storage, or Equilon Pipeline Co., by in-tank transfer, in-line transfer, book-out, or inter-facility transfer (pumpover).

Delivery Period
All deliveries are rateable over the course of the month and must be initiated on or after the first calendar day and completed by the last calendar day of the delivery month.

Alternate Delivery Procedure (ADP)
An Alternate Delivery Procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

Exchange of Futures for, or in Connection with, Physicals (EFP)
The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

Deliverable Grades
Specific domestic crudes with 0.42% sulfur by weight or less, not less than 37° API gravity nor more than 42° API gravity. The following domestic crude streams are deliverable: West Texas Intermediate, Low Sweet Mix, New Mexican Sweet, North Texas Sweet, Oklahoma Sweet, South Texas Sweet.

Specific foreign crudes of not less than 34° API nor more than 42° API. The following foreign streams are deliverable: U.K. Brent and Forties, and Norwegian Oseberg Blend, for which the seller shall receive a 30¢-per-barrel discount below the final settlement price; Nigerian Bonny Light and Colombian Cusiana are delivered at 15¢ premiums; and Nigerian Qua Iboe is delivered at a 5¢ premium.

Inspection shall be conducted in accordance with pipeline practices. A buyer or seller may appoint an inspector to inspect the quality of oil delivered. However, the buyer or seller who requests the inspection will bear its costs and will notify the other party of the transaction that the inspection will occur.

Position Limits
Any one month/all months: 20,000 net futures, but not to exceed 1,000 in the last three days of trading in the spot month.

Margin Requirements
Margins are required for open futures or short options positions. The margin requirement for an options purchaser will never exceed the premium.

Trading Symbol
Futures: CL
Options: LO

Saturday, June 5, 2010

INTC Share Watch and News

Company Profile
Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translate and transmit data across networks. In addition, Intel offers NAND flash memory products primarily used in portable memory storage devices, digital camera memory cards, and solid-state drives; network processors used in networking equipment to manage and direct data moving across networks and the Internet; software products, including operating systems, middleware, and tools used to develop, run, and manage various enterprise, consumer, embedded, and handheld devices, as well as software development tools that enable the creation of applications; and healthcare products designed to connect people and information to improve patient care and safety.

Further, it offers platforms that include a microprocessor, chipset, and enabling software. Intel sells its products primarily to original equipment manufacturers, original design manufacturers, PC and network communications products users, and other manufacturers of industrial and communications equipment. The company was founded in 1968 and is based in Santa Clara, California.