<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=705389681562533&amp;ev=PageView&amp;noscript=1">
whatsappChat

Essential payroll compliance in Malaysia and its possible complications

How do employers ensure that the payroll compliance is applied appropriately according to the local requirements?

Previously, we discussed on the 4 Key Things You Must Know about Payroll Operations in Malaysia. Now let’s take a look into the Common Payroll Compliance in Malaysia and its Related Challenges.  

The key to payroll compliance is to first comply with mandatory employment requirements. Payroll errors can cause problems to the company and its employees.

These are some of the most prevailing causes of payroll challenges that would lead to incompliance issues that employers should take note of.

 

Law_Legal_Books_Icon_Blue

 

Inaccurate employees’ data and record

It is critical that your company’s HR department solicits important and accurate data and records on the first day when a new employee joins the company. Beyond the personal particulars, it is important to ensure that new employees report the correct and accurate employment and payroll related records. Any wrong information can result in wrong payroll calculation and tax recording. It is recommended to carry out a yearly refresh exercise to ensure the hygiene of your employees’ records.

 

Gavel_Icon_Blue

 

Critical payroll errors related to statutory boards

The penalties can be avoided with the mandatory statutory bodies. Ensure contribution rates are applied correctly; tally payroll reports with the overall contributions; and make sure contribution month and payment month are aligned. Inaccurate contributions will be compounded over the months and will pose many difficulties in rectifying the errors.

 

Reminder_Final_Statement_Icon_Blue

 

Unreported benefits-in-kind, perquisites and compensation

Other benefits paid out to the employees are to be included in overall compensation even though they are not paid via payroll. A comprehensive compensation reporting is important as it will ultimately affect the overall tax applications for both the employer

 

Legal_Law_Scales_Icon_Blue

 

Not adhering to the latest regulatory changes

It is imperative to keep up-to-date on the most recent regulatory changes that concern and impact the payroll of your employees. Accumulative tabulation of wrong info as a result of the unmet changes can be cumbersome to unravel.

 

 

Let us assist you on your payroll compliance.


Click here for a prelim payroll health check or get to know more of our services.

Related Insights

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

Navigating Singapore’s Workplace Fairness Laws

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Recruitment Strategies to Attract and Retain Talent

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

Benefits of employee engagement

PayrollServe now in Malaysia

Problems of running payroll manually

[Malaysia] Tax rate changes 2021

Payroll Processing Cycle Step 2 - Information Cut-off

Amendments to the retirement and re-employment bill 2021

Payroll processing cycle - step 4 & 5: generate payroll ...

Wage Definition

Cloud Payroll Solutions: 3 key concerns for SMEs

6 non-negotiable terms HR must comply

Making the HR outsourcing decision

Benefits of payroll outsourcing for growing businesses

Cloud computing

Payroll processing cycle overview

Enhancements in marriage & parenthood package

Announcement: Change of direct debit deduction date

[Malaysia] Statutory rate for employee’s EPF share of contri...

Five reasons why companies outsource their payroll

PayrollServe and Mercer announce strategic partnership to su...

Hong Kong's Employment Ordinance 2021

Information Security Assurance for Financial Institutions th...

News Medisave and CPF Contribution Rates

Job Growth Incentives scheme

Changes in EP and S pass salary criteria

RSM Stone Forest partners French Fintech firm Jenji to push ...

News Latest Statutory Updates Sept 2011 02

516 million dollars in CPF arrears recovered by the CPF boar...

Stiffer penalties for Non-Compliance among Employment Act am...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Top 4 payroll trends followed by small businesses

Tapping into HR technology for greater productivity and cost...

What is SaaS payroll?

4 key things you must know about payroll operations in Malay...

Common HR pitfalls of small firms

Statutory Update of Work Pass (Effective 1 Sept 2022)

How is payroll outsourcing important to your business?

Payroll processing cycle step 3 - process payroll

MOM’s tightening of work pass requirements - what does this ...

Extension of the enhanced JSS support

HRM essentials for small, growing firms

Announcement: Extension of JSS for selected sectors, and S P...

Why outsourcing HR and payroll is a smart choice for busines...

CPF submissions using hardcopy forms for e-registered employ...

Is your business compliant with the General Data Protection ...

Adjustments for enhanced JSS From 27 September 2021 to 24 Oc...

Foreign worker levy waiver and rebate extended for construct...

Payroll processing cycle - step 1: collecting information

Building a more inclusive and unbiased workforce

International Businesses can hire foreigners with these Work...

Work Pass required for dependants seeking work

[Malaysia] Statutory updates on new amendments to the first ...

Update on progressive wage model for retail workers

What is human resource & payroll administration?

Payrollserve’s Appointment as Approved HR Service Provider O...

PayrollServe is now abs OSPAR-Certified to serve Financial I...

Singapore Budget - Jobs Credit Scheme

Payroll processing cycle - step 6: processing salary credit ...

Benefits of Effective Human Resource Management (HRM)

Key changes to Employment Act (with effect from 1 April 2019...

How SMEs may cope with increasing complexity in payroll proc...

Extension of Jobs Growth Incentive (JGI) scheme to March 202...

Extension of Job Growth Incentive scheme

Statutory updates under Malaysia Budget 2022

MOM announces points based assessment framework for EP candi...

[Malaysia] PayrollServe Malaysia latest statutory developmen...

Budget 2020 – HR & payroll-centric updates

S pass salary criteria (with effect from 1 January 2019)

Strategic importance of Human Resource management to busines...

Why should companies outsource payroll activities?

Contract of Service

PayDay! SaaS vs manual payroll calculation

Submission of employment income for YA 2023 via AIS Applicat...

New progression wage model for waste management workers

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

Navigating Singapore’s Workplace Fairness Laws

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Recruitment Strategies to Attract and Retain Talent

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

Benefits of employee engagement

PayrollServe now in Malaysia

Problems of running payroll manually

[Malaysia] Tax rate changes 2021

Payroll Processing Cycle Step 2 - Information Cut-off

Amendments to the retirement and re-employment bill 2021

Payroll processing cycle - step 4 & 5: generate payroll ...

Wage Definition

Cloud Payroll Solutions: 3 key concerns for SMEs

6 non-negotiable terms HR must comply

Making the HR outsourcing decision

Benefits of payroll outsourcing for growing businesses

Cloud computing

Payroll processing cycle overview

Enhancements in marriage & parenthood package

Announcement: Change of direct debit deduction date

[Malaysia] Statutory rate for employee’s EPF share of contri...

Five reasons why companies outsource their payroll

PayrollServe and Mercer announce strategic partnership to su...

Hong Kong's Employment Ordinance 2021

Information Security Assurance for Financial Institutions th...

News Medisave and CPF Contribution Rates

Job Growth Incentives scheme

Changes in EP and S pass salary criteria

RSM Stone Forest partners French Fintech firm Jenji to push ...

News Latest Statutory Updates Sept 2011 02

516 million dollars in CPF arrears recovered by the CPF boar...

Stiffer penalties for Non-Compliance among Employment Act am...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Top 4 payroll trends followed by small businesses

Tapping into HR technology for greater productivity and cost...

What is SaaS payroll?

4 key things you must know about payroll operations in Malay...

Common HR pitfalls of small firms

Statutory Update of Work Pass (Effective 1 Sept 2022)

How is payroll outsourcing important to your business?

Payroll processing cycle step 3 - process payroll

MOM’s tightening of work pass requirements - what does this ...

Extension of the enhanced JSS support

HRM essentials for small, growing firms

Announcement: Extension of JSS for selected sectors, and S P...

Why outsourcing HR and payroll is a smart choice for busines...

CPF submissions using hardcopy forms for e-registered employ...

Is your business compliant with the General Data Protection ...

Adjustments for enhanced JSS From 27 September 2021 to 24 Oc...

Foreign worker levy waiver and rebate extended for construct...

Payroll processing cycle - step 1: collecting information

Building a more inclusive and unbiased workforce

International Businesses can hire foreigners with these Work...

Work Pass required for dependants seeking work

[Malaysia] Statutory updates on new amendments to the first ...

Update on progressive wage model for retail workers

What is human resource & payroll administration?

Payrollserve’s Appointment as Approved HR Service Provider O...

PayrollServe is now abs OSPAR-Certified to serve Financial I...

Singapore Budget - Jobs Credit Scheme

Payroll processing cycle - step 6: processing salary credit ...

Benefits of Effective Human Resource Management (HRM)

Key changes to Employment Act (with effect from 1 April 2019...

How SMEs may cope with increasing complexity in payroll proc...

Extension of Jobs Growth Incentive (JGI) scheme to March 202...

Extension of Job Growth Incentive scheme

Statutory updates under Malaysia Budget 2022

MOM announces points based assessment framework for EP candi...

[Malaysia] PayrollServe Malaysia latest statutory developmen...

Budget 2020 – HR & payroll-centric updates

S pass salary criteria (with effect from 1 January 2019)

Strategic importance of Human Resource management to busines...

Why should companies outsource payroll activities?

Contract of Service

PayDay! SaaS vs manual payroll calculation

Submission of employment income for YA 2023 via AIS Applicat...

New progression wage model for waste management workers