Last updated: February 2026
SME Payroll Compliance Checklist: Don't Get Caught Off Guard
The Essential Guide to Keeping Your Malaysian Business Legal
Reduce compliance risk
Compliance is not optional
Why Malaysian SMEs Choose HavaHR Payroll
Avoid expensive fines and compound penalties
Build trust with your employees
Smooth due diligence for future fundraising/exit
Learn More About Payroll Compliance
To ensure payroll compliance in Malaysia, SMEs must: 1) Register as an employer with KWSP, PERKESO, and LHDN. 2) Deduct and remit EPF, SOCSO, EIS, and PCB by the 15th of the following month. 3) Issue payslips to all employees. 4) Issue Form EA by Feb 28th annually. 5) Submit Form E by March 31st annually. 6) Adhere to minimum wage and overtime rules.
A complete checklist for business owners to navigate the complexities of Malaysian payroll compliance. Covers registration, monthly tasks, and annual filings.
Frequently Asked Questions
What do I need to register as a new employer?
You must register with KWSP (EPF), PERKESO (SOCSO/EIS), and LHDN (E-Number). This should be done within 7 days of hiring your first employee.
What are the annual payroll forms?
Form E (Employer's Return) must be submitted to LHDN by March 31st. Form EA (Employee's Statement) must be given to employees by Feb 28th.
How long should I keep payroll records?
According to the Employment Act and Tax Laws, payroll records must be kept for at least 7 years for audit purposes.
Is HRDF mandatory?
HRD Corp levy is mandatory for employers with 10 or more Malaysian employees. Rate is 1% of monthly wages.