Course Overview for Effective Payroll Calculations Training

This intensive two-day programme equips hands-on payroll specialists with the comprehensive knowledge and practical skills required to handle payroll operations in Malaysia. Participants will gain a clear understanding of statutory requirements, payroll processes, compliance and reporting responsibilities, while learning to manage errors in payroll calculations and statutory form submissions within the required deadlines.

Target Audience

This programme is suitable for:

• Hands-on payroll specialists
• New payroll employees and joiners responsible for end-to-end payroll processing
• Personnel responsible for accurate payroll calculations and record keeping

Objectives

On completion of the programme, participants will be able to:

1. Understand the roles and responsibilities of payroll administrators in Malaysia.
2. Understand and apply Malaysian statutory requirements for calculating and reviewing EPF, SOCSO and EIS contributions.
3. Apply and calculate Monthly Tax Deduction (MTD) and monthly income tax instalments correctly in payroll processing.
4. Manage other payroll calculations, deductions and allowances accurately.
5. Understand different types of payroll reports and statutory digital submissions, and complete them within the required deadlines.

Program Duration: 2 Days

Course Content

Module 1: Introduction to Payroll Administration in Malaysia

• Role of payroll in business operations
• Payroll administrator’s key tasks and responsibilities
• Overview of Malaysian payroll laws and regulations, including amendments to the Employment Act 2022, EPF contribution rates and SOCSO contribution tables
• Differences between gross salary, net salary and statutory deductions and contributions

Module 2: Statutory Contributions and Compliance

• EPF (Employees Provident Fund): contribution rates and rules
• SOCSO and EIS: coverage, calculations and reporting
• Income Tax (PCB): monthly deductions and annual forms (EA, Form E and CP39)
• Employment Act provisions related to payroll, including leave pay, overtime and termination
• Preparation, calculation, mechanisms and deadlines for the Income Tax Form CP204 (Estimate of Tax Payable) for companies, Limited Liability Partnerships (LLPs), trust bodies and co-operative societies
• Preparation of the Statement of Monetary and Non-Monetary Incentive Payment to an Agent, Dealer or Distributor (Form CP58) and Form CP8D (Return of Remuneration by an Employer) for companies

Module 3: Payroll Calculations for Benefits-in-Kind, Perquisites and Payroll Adjustments

• Types of wages, allowances and benefits-in-kind (BIK)
• Overtime, shift allowance and bonus calculations
• Payroll adjustments involving leave, loans and advances
• Deductions, including loans, salary advances and unpaid leave
• Common payroll errors that may cause statutory compliance violations and how to avoid them

Module 4: Reporting and Statutory Submissions

• Overview of EA Forms and Form E submission
• E-filing and online portals for EPF, SOCSO and LHDN
• Types of LHDN forms and payroll procedures for new hires, resignation and termination

Module 5: Payroll Best Practices and Handling Statutory Regulator Queries

• Confidentiality and data protection in payroll
• Payroll schedules and timelines
• Updating payroll software according to the latest Employment Act requirements and rate amendments
• Internal checks and controls to minimise errors
• Proper payroll record keeping for Inland Revenue, EPF and SOCSO inspections, particularly in response to recent payroll tax and compliance audits

Delivery Methods

Where appropriate, activities will include the following:

• Lectures
• Facilitated group discussions
• Hands-on practical exercises with sample answers and case studies
• Pre-training and post-training gamified quizzes

Note: Participants are required to bring laptops with internet access to navigate statutory payroll websites and perform payroll calculations where necessary.

Duration

2 Days