Employer contribution to EPF, SOCSO and LHDN

Employer Contribution to EPF, SOCSO and LHDN

So, the good news is business is picking up and your company’s revenue is on the rise. But there is a constant stream of matters to address and it’s a juggling act trying to do it all on your own. You are on the edge of functioning, even after three cups of coffee! And there’s also the risk that mistakes will be made or something critical will get overlooked.  The time has come for you to get some extra help with the company. You are preparing yourself to step into the shoes of an employer. To stay compliant, you will have to register yourself as an employer with several government agencies:

Employer Contribution to EPF, SOCSO, LHDN

KWSP/EPF (Employees Provident Fund) 

All employers that are SSM-registered Sdn Bhds or registered businesses, i.e Enterprises or Partnerships should register themselves with KWSP within 7 days from when the first employee is hired. The registration service for employers is not available online at the moment so you can submit your application at any KWSP offices. You will need to fill up KWSP’s Employer Registration Application Form (Form 1) and submit this with a copy of your company’s Superform (Form 24, 44 & 49 (Section 14)) and Certificate of Incorporation (Form 9 (Section 17)), which you can obtain from your company secretary. You will then receive an Employer’s Reference Number, Notice of employer’s registration as well as an Employer’s Registration Certificate that you can display in your office.

We would suggest you to also register yourself as a user on the KWSP’s i-Akaun employer portal. This will make it much easier for you to make monthly contributions online. An activation code will be sent to your registered mobile number to activate your employer account on the portal. Employers contribute 13% of the employee’s monthly wage. All contributions are to be paid by every 15th of the following month.

Other employers within the private sector that are not a registered Sdn Bhd are also required to register themselves with KWSP, including registered businesses i.e. Enterprises and Partnerships, banks, government-linked companies or government-linked investment companies.

Employer Contribution to EPF, SOCSO, LHDN

PERKESO or SOCSO 

Employers are required to register with PERKESO within 30 days from when the first employee is hired. The registration service for employers is available online, all completed forms and supplementary documents can be emailed to idportal@perkeso.gov.my. You will have to fill up SOCSO’s Employer’s Registration Form (Form 1) and Employee’s Registration Form (Form 2). Your application submission is also to be supplemented with a copy of your company’s Superform (Form 24, 44 & 49 (Section 14)) and Certificate of Incorporation (Form 9 ((Section 17)).

PERKESO also has an ASSIST portal to allow employers to make changes regarding the details of the employer. In order to register yourself as an employer user, you will have to submit this form. You can find all the forms and guides to fill out the forms here on SOCSO’S website. Further instructions to access the ASSIST Portal will be provided via email.

Just like KWSP contributions, all SOCSO and EIS contributions are also to be made by every 15th of the following month. Employers contribute 1.75% of the employee’s monthly wage for the Employment Injury and Invalidity Scheme and 0.2% of the employee’s monthly wage for the Employment Insurance Scheme (EIS).

Employer Contribution to EPF, SOCSO, LHDN

LHDN 

Aside from the registration of individual and corporate taxpayers with LHDN, you can now register yourself as employers, partnerships and limited liability partnerships (LLPs) on the e-daftar application. New employers can first fill out this form, then upload a copy of your company’s Superform (Form 24, 44 & 49 (Section 14)) and Certificate of Incorporation (Form 9 (Section 17) here. You can check your employer number here after approximately 3 working days.

We would suggest you to keep an eye on your e-Daftar application as it will be cancelled automatically if complete documents are not received within 14 days from the date of application.

Benefit from The Right Resources 

Running a business is challenging, especially now that you will be expecting to be a new employer! But the challenges can easily be organised into smaller bite-sized activities with the help of project management tools. Quadrant Biz Solutions is able to help you attend to your company secretarial matters while you are tackling different kinds of challenges running your business. Speak to us today!

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