Towards Readiness for Employers and Payroll Audit

Irb has intensified tax audit on employer’s tax responsibilities to ensure they are being adhered to owing to stringent tax laws. These tax obligations are includes notifying the irb on employee’s commencement and cessation, compliance with monthly tax deductions (mtd), filing of employer’s tax return, preparation of form ea, employee’s share scheme, etc. 

Employers must be mindful of the amendments in tax rules while carrying out the tax obligations. They need to understand the types of information required, audit focus area, and potential risk areas to mitigate Employer’s and Payroll Audit by the IRB

Overview of Employer Responsibilities

I. Who is considered an employer?
II. What are the employer’s responsibilities?
III. Offences by Employer
IV. List of statutory forms to be completed by an employer pertaining to:

• Notification of new employee
• Cessation of employee
• Employees leaving Malaysia and Employer’s duty
• Forms E and CP8D
• Form EA and Form CP58
• Online Delivery Service
• Does the implementation of e-invoicing need to modify the company’s processes pertaining:

To the employee’s remuneration, reimbursement of expenses incurred by the employee on behalf of the employer
Employee’s perquisites and benefits-in-kind

Points to take note and consequences for non-compliance

I. The Employer Tax Audit Framework

• Common employer’s tax issues
• Good practices in assisting employer to prepare for payroll audit
• Common audit findings on payroll audit
• Challenges faced by ‘deemed employer’
• Special payroll considerations for short-term assignments?

Updates on of employment income reporting