Kakitangan 101A Payroll Part 1

KAKITANGAN.
com
Payroll 101 for SMEs

What is the basic knowledge you need to do your payroll?
Content Kakitangan.com
 Introduction
 Things you need to know on Payroll
 Statutory
 PCB / MTD
 Payslip
 Statutory Contribution
 EPF – Responsibility, payment liable and not liable for EPF contribution
 SOCSO - Responsibility, payment liable and not liable for EPF contribution
 EIS - Responsibility, payment liable and not liable for EPF contribution
 HRDF – Does your company need to contribute?
 Common mistakes in doing payroll
Kakitangan.com
You have a company, and you need to

pay your staff – where payroll begins
Things you need to know doing payroll Kakitangan.com
 Statutory Contributions – EPF, Socso, EIS and HRDF

 Scheduler Tax Deduction – MTD (PCB)
 Payslip – Employees should be issued with payslip, include information such as
wages and deductions made.
 Employee records – Employers should maintain a record of payment
EPF Employees Provident Fund Kakitangan.com
 The EPF ( Employees Provident Fund) is a social security institution formed

according to the Laws of Malaysia, and the Employees Provident Fund Act
1991 (Act 452).
 It provides retirement benefits for members and ensures such contributions
are payable to the employees in full on reaching the age of 55 years.
Contribution Rate
The employees’ monthly statutory contribution rates 11% for

employees below age 60 and from 4% to 5.5% for those age 60 and
above, effective July 2022 wage/salary.
2 parties involve in EPF

 Employer - An employer is defined as a person(s) with whom an employee has
a contract of service or apprenticeship.
 Employee - An employee is defined as a person who is employed under a
contract of service or apprenticeship. The contract of service or
apprenticeship can be written or oral, expressed or implied.
❖ "Contract of Service" is an agreement in which a person agrees to employ another person as an employee and the
other person agrees to serve his employer as an employee.
❖ "Contract of Apprentice" means a written contract made by a person with an employer who pledge to employ the
person and train or cause him to be systematically trained for a work during a specified period of time approved by
the employer who in the course of the exercise the apprentice is bound to working in the service of the employer.
(Apprenticeship definition reference – Employment Act 1955)
Responsibility as an employer and employee Kakitangan.com
to register and contribute
Employer
 Registration - register with the EPF within 7 days as soon as an employee is hired
(Section 41(1), EPF Act 1991)
 Where to register
❖ Any EPF counter
✓ complete Form KWSP 1 and to submit together with Business Registration Certificate
❖ Online
✓ Online for companies registered with SSM
Receiving Statement Through Email

❖ To receive statement via email, the employer must verify the email address at
epostedlist@epf.gov.my as in the format below:
✓ Employer number
✓ Name of Company / Ministry / Department
✓ Contact phone number
✓ Email address
Registering an i-Akaun (Majikan)

In addition to employer registration, you will be registered/will need to register as an user to facilitate
you to pay contributions online.
Step 1
Forms can be obtained at the EPF counter or Website.
➢ Form KWSP 1 - new employer
➢ Form KWSP 1(i) - employers who have registered with EPF
Step 2
➢ Employer's representative submits documents to EPF officers for registration
Registering an i-Akaun (Majikan)

Step 3 Step 5
The EPF Officer rectifies the following documents:- Employer's representative will receive the activation
code via SMA on the registered mobile phone
➢ Form KWSP 1/KWSP 1(i)
➢ Company Official Stamp
Step 6
Step 4
Employer's representative to active i-Akaun (Majikan)
➢ EPF Officer register i-Akaun (Majikan)
via myEPF within 30 days of registration.
Employee
➢Registration
➢ Automatic registration , upon receiving the first contribution
➢ At the counter – KWSP3 form
➢ i Akaun EPF – employer key in all related details
➢ Kiosk – any epf smart kiosk
Register & Activate i-Akaun

 The EPF has made it easier for our members to access their EPF savings through i-Akaun (Member),
where you can also monitor your contributions and apply for withdrawals easily.
Step 1
➢ Get your temporary User ID & Password from your nearest EPF office/kiosk.
Step 2
➢ Head to www.kwsp.gov.my, go to the ‘Member Login’ section and use the temporary User ID &
Password sent via SMS to activate.
➢ *Activation must be done within 30 days of receiving SMS
Register & Activate i-Akaun

Step 3
➢ Once you agree, you will need to choose a new User ID*, Password, Image and Secret Phrase.
➢ *If User ID is not chose, you can use your temporary ID
Step 4
➢ Once activation is complete, you will get a successful notification on your screen.
Step 5
➢ Login with your new account details and you are now in charge of your EPF savings.
Employer
❖ Contribution –
➢ 12% Salary above RM5K
➢ 13% Salary below RM5K
• employer shall be liable to pay EPF contributions, they includes
• Part time, temporary and probationary employees
• Directors who receive wages from company;
• Employees until the age of 75 years old
Employee
❖ Contribution
➢ payments which are meant to be wages are accountable in your monthly contribution
amount calculation. These include:
✓ Salary
✓ Payment for unutilised annual or medical leave
✓ Bonus
✓ Allowance
✓ Commision, Incentive
✓ Arrears of wages
✓ Wages for maternity leave / study leave
✓ Other payments under services contract or otherwise
Summary Rate of Contribution Kakitangan.com
❖ Employees aged under 60

 For Malaysians and Permanent Residents, and for Non-Malaysians registered as members before 1
August 1998 (section A of EPF Contribution Table):
 Monthly salary of RM5,000 or less:
• Employee contributes ~11% of their monthly salary
• Employer contributes ~13% of the employee's salary
 Monthly salary greater than RM5,000:

• Employee contributes ~11% of their monthly salary
 For Non-Malaysians registered as members from 1 August 1998 (section B of EPF Contribution Table):
• Employees share: ~11% of their monthly salary
• Employer’s share: RM5.00

❖ Employees aged 60 and above

 For Malaysians (section E of EPF Contribution Table):
• Employee contributes 0% of their monthly salary
 For Permanent Residents, and for Non-Malaysians registered as members before 1 August 1998 (section
C of EPF Contribution Table):
 Monthly salary of RM5,000 or less:
• Employee contributes: ~5.5% of their monthly salary
• Employer contributes: ~6.5% of the employee's salary
 Monthly salary greater than RM5,000:

• Employee contributes: ~5.5% of their monthly salary
• Employer contributes: ~6.0% of the employee's salary

 For Non-Malaysians registered members from 1 August 1998 (section D of EPF Contribution Table) :
• Employees share: ~5.5% of their monthly salary
• Employer’s share: RM5.00

❖ Payments not liable for EPF contribution:

✓ Service charges - Any money or payment either in the form of a service charge, a service fee, a tip or other
payments which has been paid by, charged on, collected from or voluntarily given by a customer or any other person (who
is not the employer) with respect to the employer's business.
✓ Overtime payment - Any payment due from an employer to an employee for work carried out in excess of the
normal working hours of such employee and includes any payment paid to an employee for work carried out on public
holidays and rest days.
✓ Gratuity -Any payment paid by an employer to an employee upon completion of service or voluntary resignation as a
recognition of such employee's service.
✓ Retrenchment, temporary and lay-off termination benefits - Any payment that has been made to the
employee for when they voluntarily retire or have reached retirement age.
✓ Retirement benefits - Any payment made by an employer due to the reduction or termination of employees.
✓ Any travelling allowance or the value of any travelling concession -Any payment paid by an
employer to an employee for the purpose of travelling and transportation expenses.
Update & Maintain Records

❖ Keeping Your Records
One of the key responsibilites is to routinely update your records to reflect the latest information
to ensure that members’ contribution are in order.
➢ Changes In Employer’s Name/Status And Address
➢ Retrenchment Of Workers
✓ Stop employing workers temporarily - Employers who do not have employees for a given
month need to inform the EPF by mail/email or other designated channels from time to time.
✓ Do not have and does not intend to employ any employees - Employers who currently do
not have employees and does not intend to employ any employees in the future should notify the
EPF using Form KWSP 6 (Form B)/mail/email or other designated channels within 30 days.
➢ Termination Of Operations - An employer who wishes to terminate their operations shall notify the
EPF by completing Form KWSP 6 (Form B)/mail/email or other designated channels within 30 days.
Update & Maintain Records

❖ What You Should Maintain
➢ Wages/Salary Record - The employer shall maintain and keep the wages and EPF records, at least
six (6) years from the date of the last information being recorded
➢ Preparing Wages Statement/Salary Slip - Employers must prepare and provide wage statements
or salary slip showing EPF deductions to employees.
➢ Feedback On The Contribution Statement - It is the employer’s responsibility to check the

accuracy of the information in the Contribution Statement received from the EPF.
❑ Employers can now opt to receive your Contribution Statement via email.
❖ COMPLIANCE AND ENFORCEMENT

Useful link
❖ Checking eligibility to contribute

➢ https://secure.kwsp.gov.my/KWSP_files/eligibilityContribute/index_en
.html
❖ EPF Schedule
➢ https://www.kwsp.gov.my/documents/20126/140690/JADUAL_KETIGA
_04012019_ENG.pdf/cf881bb1-6911-3a66-cc86-
eb16d241c173?t=1547621842457
Case Study - Underpaid EPF contribution
Company ABC – Oil & Gas Industry

Employee A - Basic Salary RM2000 Letter offer + RM500 Fixed Allowance
Employee is then paid cash RM300 when they report to duty. At the end of the
month payroll is calculated Basic Salary (RM1700) + Additional Earnings
(RM500)
Company ABC paid Employee A in monthly payroll

RM1700 + RM500 = RM 2200
EPF contribution (11%) is paid based on wages RM 2200
Employee contribution = RM 242
Employer contribution = RM 286
Company ABC should calculate Employee A in monthly payroll

RM 2000 + RM500 = RM 2500
Employee contribution = RM 275
Company underpaid EPF employee contribution of RM33 (RM275 – RM242)

Case Study – overpaid EPF contribution
Employee A Basic salary RM 2000

Employee has unpaid leave of 2 days
Company calculate payroll and pay EPF contribution from salary of RM 2000
Company paid EPF contribution
EPF employee = RM220
EPF employer = RM260
Company should calculate

RM 1866 = RM2000 – RM134 (unpaid leave amt)
EPF Employee = RM207
EPF Employer = RM245
Company has overpaid

EPF employee = RM13
EPF employer = RM15
What to do if an employer overpays or underpays EPF contributions?
Overpaid
You can claim a refund.
To apply, please follow these steps:

1.Fill out Form 14
2.Prepare an explanation letter containing details of the error.
3.Submit the documents at any EPF counters.
Underpaid
1.Log in to i-Akaun.
2.Select ‘Contribution Payment’, and then ‘Submit Contributions’.
3.State the contribution month for which you want to make the adjustment payment.
4.Select ‘Blank Form A’ and click on ‘Add New Employee’.
5.Fill out Form A including the employee's name, IC number and the adjustment
payment amount.
6.Scroll down to the bottom of the page, click ‘I confirm that’ and then ‘Next’.
7.As the final step, you will need to select a payment method and make the adjustment
payment.
SOCSO Kakitangan.com
Employees’ Social Security Act,1969 and Employees’ Social Security (General)

Regulations, 1971 are applicable to all industries having one or more employees
❖ Designed to deliver financial support should the employee suffer an injury, or an illness or
occupational disease which results in death or disability.
❖ Provides social security protection including medical and cash benefit, provision of artificial
aids, and rehabilitation –
❖ SOCSO administer two types of social protection schemes:

➢ Employment Injury Insurance Scheme
➢ Invalidity Pension Scheme
Register and Contribute
Coverage of the Workers Social Security Act 1969

❖ Contributions are divided into two (2) types
➢ Contributions of the First Category
Employees less than 60 years of age, contributions payable by employers and employees are
for the Employment Injury Scheme and the Invalidity Scheme.
The rate of contribution under this category comprises 1.75% of employer’s share and 0.5% of
employees’ monthly wages according to the contribution schedule.
Note : All employees who have not reached the age of 60, must contribute under the First Category except for those who
have attained 55 years of age and have no prior contributions before they reach 55 due to non-eligibility under the
Employees’ Social Security Act, 1969.
Coverage of the Workers Social Security Act 1969

❖ Contributions are divided into two (2) types
➢ Contributions of the Second Category
The rate of contribution under this category is 1.25%, payable by the employer, based on the
contribution schedule. All employees age of 60 yrs old must be covered under this category for
the Employment Injury Scheme only.
Note : For eligible new employees who are 55 years of age, they must be covered under the Second Category.
Employers Employees
➢ Responsible to register and ➢ Malaysian citizens and permanent
contribute to (SOCSO)
residents employees are compulsory to
➢ the contributions are paid register
accordingly.
➢ Contribution capped at monthly
remuneration of RM5,000.00
Registration of New Employer and Employee

❖ New employer and employee must be registered with SOCSO within 30 days upon hiring a
new employee.
➢ Employer is required to complete the Employer’s Registration Form (Form 1)
➢ Employee’s Registration Form (Form 2)
alongside other online documents in the ASSIST Portal.
Registration of New Employer and Employee

Borang Permohonan Enrolment Penggunaan Portal Assist
• Borang Permohonan Enrolment Penggunaan Portal Assist
Pendaftaran Majikan & Pekerja

• Panduan Borang 1
• Borang 1-Pendaftaran majikan
• Panduan Borang 2
• Borang 2-Pendaftaran pekerja
• Lampiran-Surat Akuan Majikan
• Senarai Semak Dokumen Permohonan Pendaftaran Majikan Dan Pekerja

who is employee
❖ Under the Act, an employee is defined as a person who has been employed by
an employer under a contract of service or apprenticeship.
 Permanent, Part Time, Temporary
❖ Employees Monthly Earning At RM3,000 Or Less must contribute to SOCSO.
❖ SOCSO’s coverage is only for employees who are Malaysian citizens and who are
permanent residents.
who is employee
Employee NOT covered under SOCSO

➢ The following group are excluded from SOCSO’s coverage:-
➢ Government employees
➢ Domestic servants
➢ Self-employed persons
➢ Business owner and spouses of Sole-Proprietors or Partnership
Which payments are subject to SOCSO contribution and which are

exempted?
Wages subject to SOCSO contribution: Wages NOT subject to SOCSO contribution:

 All renumeration or wages stated below • The following wages or remuneration
and payable to staff/workers are subject
to SOCSO contributions: payable to staff/workers are NOT subject
to SOCSO contribution:
 Salary / Wages (full/part time,
monthly/hourly) • Payments by employer to any pension or
 Overtime payments provident fund for employees
 Commission • Mileage claims

 Paid leave (annual, sick and maternity • Gratuity payment(s) for dismissal or
leave, rest day, public holidays) retrenchments
 Allowances
• Annual bonus
 Service Charge
Where can I find the SOCSO contribution table?
Current contribution
Please refer to the table for all employees who are under the Coverage of the
Workers Social Security Act 1969
The contribution will be capped at a monthly salary of RM5,000.00.
Click here for the full table of SOCSO
How Do I Pay SOCSO?
 Online Banking
• Kakitangan generates batch payment files for your banks and you can easily
submit and pay contributions to the statutory bodies.
 Perkeso Assist Portal
• The Perkeso Assist Portal is a portal that allows employers to manage company
details, employee information and monthly contributions for SOCSO and EIS.
• Click here on manual for combine contribution payment of SOCSO+EIS
How can I claim a refund from SOCSO?

• If you wish to claim for a refund of contributions, you would need to fill in form PKS:(K) 50A
and submit it to your nearest Perkeso branch. Your local branch will forward your request to
the Perkeso HQ where processing time will be around 2 weeks.
Or
• You can also claim a refund via Assist Portal if you overpaid your SOCSO contribution.
• Login to https://assist.perkeso.gov.my/employer/login and follow these steps:

✓ Head to My Sites (top right).
✓ Inspection > Click on ‘BBC’.
✓ Add all required details at Refund Application - PKS(K)50.
✓ Click ‘Save & Continue’.
✓ Upload documents (business registration certificate and copy of employee’s IC).
✓ Click ‘Save & Continue’.
✓ Review and click ‘Submit’.
Case Study
Company ABC calculate payroll for employees and deduct employees socso
contribution. Payroll officer then forgot to make socso contribution payment for
that month. After few months then realize they have not make contribution
payment for it.
“The monthly payment of SOCSO contribution comprising of both employees' and
employer's share should be paid by the 15th of the month for the salary issued
for the previous month. A late payment interest rate of 6% per year will be charged
for each day of contribution not paid.”
EIS (SIP) Kakitangan.com
What is the Employment Insurance System (EIS)?

• The Employment Insurance System (EIS) was first implemented in January 2018
by PERKESO. It is a financial scheme aimed at helping employees who lost their
jobs until they find new employment. The contributions are being collected in a
fund in order to provide financial assistance to retrenched employees. It also
aims to provide extended welfare coverage and aid in job search via career
counselling and job-hunting assistance.
Employer & Employee Contributions

• All private sector employers need to pay monthly contributions for
each employee.
• Civil servants, domestic servants and those who are self-employed
are exempted.
• All Malaysian and permanent resident employees aged from 18 to
60 years old have to contribute. Employees aged between 57 and 60
who have never contributed to EIS are exempted from this
protection plan.
Contribution Rates
• The contribution rate for EIS is ~0.2% of the employee's salary
(employer share) and ~0.2% of the employee's salary (employee
share). The maximum eligible monthly salary is capped at RM 5,000.
• Refer to the link for table

• Click here for the latest EIS table
EIS Kakitangan.com
EIS Benefits Kakitangan.com
Eligibility To Claim Benefits

All employees insured under the Act (known as Insured
Persons) who have lost their employment are eligible with the
following exceptions:
• Voluntary resignation by the Insured Person

• Expiry of the Insured Person’s fixed-term contract
• Unconditional termination of a contract of service based on
an agreement between the Insured Person and his/her
employer
• Completion of a project specified in a contract of service
• Retirement of the Insured Person
• Dismissal due to misconduct by the Insured Person
Applicants for benefits must prove that they are able to

work, available to work and actively seeking work.
EIS Payment
• If it is the first time you contribute EIS for your employees, you will need to
register with PERKESO first .
• There are a few ways to make payment.
Online Banking
• Kakitangan generates batch payment files for your banks and you can easily submit
and pay contributions to the statutory bodies.
• If you submit and pay your EIS contributions via your bank portal, you do not need
to submit again via the Assist Portal. Contributions will be automatically updated in
your Assist Portal.
Perkeso Assist Portal

• The Perkeso Assist Portal is a portal that allows employers to manage company
details, employee information and monthly contributions for SOCSO and EIS
Case Study
Company ABC only deduct EIS contribution for Basic Salary only.
They did not include additional earnings to the deduction for EIS.
Case Study
Company ABC only deduct EIS contribution for Basic Salary only.
They did not include additional earnings to the deduction for EIS.
Employee A Basic salary is RM2000. He also receive an allowance of

RM200.
EIS deduction is calculated based on RM2000.
Employee A EIS deduction should be calculated at RM2200.

Underpaid
You can make arrears/shortage payments via Assist Portal if you underpaid your
EIS/SOCSO contribution
Login to https://assist.perkeso.gov.my/employer/login.and follow these steps:
✓ Head to My Sites (top right) > SOCSO/EIS Contribution.

✓ Select Add Contribution (Portal) under Employer Contribution.
✓ Click on ‘Arrears Contribution’.
✓ Select the Contribution Month and click on ‘Short Payment’.
✓ Click on under the Action column to edit/update your employee’s salary
and the portal will calculate the contribution automatically.
✓ Repeat the process if there are other contribution months.
✓ Click Complete > Submit > Confirm to complete the submission process.
HRDF Kakitangan.com
HRDF Kakitangan.com
LEVY GRANT SYSTEM

This system was introduced to implement training programmes based on the
identification of business’ needs. It also enables employers to retrain and upskill their
employees, in line with the organisation’s current and future operational
requirements.
HRDF Kakitangan.com
TERMS AND CONDITIONS FOR NEW REGISTRATION

HRDF Kakitangan.com
NEW EMPLOYER REGISTRATION PROCESS
Form 1 link
https://etris.hrdcorp.gov.my/DigiGov/digigovportal.htm?actionFlag=getEmplrRegForLoad&elementId=1100298&isAnonymous=true&changeLang=en_US
https://hrdcorp.gov.my/wp-content/uploads/2021/09/How-To-Fill-In-Form-1-Registration-of-Employers-v2.pdf
Levy Payment Kakitangan.com
•Manual Payment
Guidelines to pay levy via manual payment
•Online Payment
Guidelines to pay levy via online payment
•Refund
Guidelines to apply for refund via e-TRiS
•Form 3
Guidelines to apply schedule of arrears of levy
Claim helper Kakitangan.com
•Skim Bantuan Latihan (SBL) and Skim Latihan Bersama (SLB)

Guidelines to submit claim for above
•HRD Corp Claimable Course

•Training Facilities Renovation (ALAT), Information Technology (IT) and Computer Based Training (CBT) Scheme
•Industrial Training Scheme (ITS)

•HRD Corp Events

•Claim Query
Guidelines to resubmit the claim query of approved grant
•Claim Withdrawal
Guidelines to withdraw the claim
End of Part 1 Kakitangan.com
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KAKITANGAN.

Payroll 101 for SMEs

You have a company, and you need to

 Statutory Contributions – EPF, Socso, EIS and HRDF

 The EPF ( Employees Provident Fund) is a social security institution formed

The employees’ monthly statutory contribution rates 11% for

2 parties involve in EPF

Receiving Statement Through Email

Registering an i-Akaun (Majikan)

Registering an i-Akaun (Majikan)

Register & Activate i-Akaun

Register & Activate i-Akaun

❖ Employees aged under 60

• Employer contributes ~13% of the employee's salary

 Monthly salary greater than RM5,000:

• Employer contributes ~12% of the employee's salary

• Employer’s share: RM5.00

❖ Employees aged 60 and above

• Employer contributes ~4% of the employee's salary

• Employer contributes: ~6.5% of the employee's salary

 Monthly salary greater than RM5,000:

• Employer contributes: ~6.0% of the employee's salary

• Employer’s share: RM5.00

❖ Payments not liable for EPF contribution:

Update & Maintain Records

➢ Changes In Employer’s Name/Status And Address

Update & Maintain Records

➢ Feedback On The Contribution Statement - It is the employer’s responsibility to check the

❖ COMPLIANCE AND ENFORCEMENT

❖ Checking eligibility to contribute

Case Study - Underpaid EPF contribution

Company ABC – Oil & Gas Industry

Company ABC paid Employee A in monthly payroll

Company ABC should calculate Employee A in monthly payroll

Company underpaid EPF employee contribution of RM33 (RM275 – RM242)

Case Study – overpaid EPF contribution

Employee A Basic salary RM 2000

Company should calculate

Company has overpaid

What to do if an employer overpays or underpays EPF contributions?

You can claim a refund.

To apply, please follow these steps:

Employees’ Social Security Act,1969 and Employees’ Social Security (General)

❖ SOCSO administer two types of social protection schemes:

Register and Contribute

Coverage of the Workers Social Security Act 1969

Register and Contribute

Coverage of the Workers Social Security Act 1969

Register and Contribute

Registration of New Employer and Employee

Registration of New Employer and Employee

Pendaftaran Majikan & Pekerja

• Borang 1-Pendaftaran majikan

• Borang 2-Pendaftaran pekerja

• Lampiran-Surat Akuan Majikan

• Senarai Semak Dokumen Permohonan Pendaftaran Majikan Dan Pekerja

Employee NOT covered under SOCSO

Which payments are subject to SOCSO contribution and which are

Wages subject to SOCSO contribution: Wages NOT subject to SOCSO contribution:

 Commission • Mileage claims

Where can I find the SOCSO contribution table?

How Do I Pay SOCSO?