The CP38 amount is the additional amount of tax on top of the PCB. CP38 deduction arises only when the LHDN issues a specific direction to the employer requiring him to make additional monthly deductions from the employee's salary. Such CP38 deductions are generally towards the settlement of outstanding taxes from previous years.

Please follow the steps below to add the CP38 deduction to the payroll:

1) Launch to Run Payroll page(Menu HR > Payroll > Run Payroll)

2) Select the payroll month and cycle. Select the respective employee.

3) Click "Add Payroll Item" and select "CP38 Tax Deduction" item under Deduction.

4) Enter the amount and click "Add".