PROGRAMME  DESCRIPTION  

Purpose of EPF, SOCSO and Employment Insurance Scheme 2018

The EPF Act 1991 is a compulsory retirement scheme for employees. The SOCSO Act 1969 is a compulsory insurance scheme for Malaysian employees for employment injury or invalidity. The Employment Insurance Scheme2018 is a compulsory scheme for retrenched employees

Both employer and employee are required by law to contribute to EPF, SOCSO and EIS.

Obligations of Employer for ‘PCB’

The Monthly Tax Deduction (MTD/PCB) scheme is a compulsory pay-as-you-earn (PAYE) scheme whereby employers are required to deduct employees’ tax on a monthly basis using the schedule, formula, approved vendor software or e-calculator methods          

Benefits of the Programme

There are many workshops for participants to master the PCB & Employee Tax Issues and EPF 1991 & SOCSO 1969 Acts and EIS (2018) contributions    

HIGHLIGHT OF THE PROGRAMME: The Step-by-Step Benefit of the Experiential Workshop on the PCB Monthly Tax Deduction

The workshop also demonstrates how the MTD/PCB is computed step-by step using the manual formula method so that you are able to explain to other employees the process; and answer the golden question: ‘why does MTD / PCB vary from month to month?’.

LEARNING OBJECTIVES

Participants will learn the following: 

• Identify wages and remuneration for SOCSO , EPF and EIS  contribution
• Compute MTD / PCB deductions and contributions using the manual formula method
• Compute VOLA and value of benefits –in-kind (BIK) and perks for income tax using the prescribed value and formula methods; Compute tax for gratuity and compensation payments
• Compute tax for non-residents and those on secondment and regional offices under the Double Taxation Agreement (DTA)  
• Prepare the EA form correctly 

FOR WHOM

• Paymasters
• Payroll Executives / Payroll Administrators
• HR Managers / HR Executives / HR Assistants
• Compensation and Benefits Managers and Executives  

COURSE OUTLINE

(1) EPF: Contributions & Deductions

• Who must contribute?
• Definition of wages for EPF contributions
• Rate of contributions under Parts A, B, C, D
• Rate of contribution by non-citizens & employers
• Rate of contribution for employees below and above 60 years of age
• Maximum age for contribution
• Documentation

(2) SOCSO & EIS: Contributions & Deductions

• Who needs to contribute and under what categories?
• Definition of wages for SOCSO & EIS  
• Penalties for non-contribution
• Who is responsible for contribution?
• Maximum ages of contribution under Employment Injury Scheme and Invalidity Schemes   
• Documentation

 (3) Income Tax Remuneration

• Definition of wages for income tax deductions
• Minimum income level for income tax deduction
• Normal vs additional remuneration

(4) Tax Residency

• Who is a tax resident?
• Qualifying period of stay in Malaysia for tax residency 
• Tax rates for resident & Non-residents

(5) MTD / PCB

• Using the MANUAL formula method to compute MTD/ PCB
• Compulsory and optional deductions
• Rebates after tax 
• Deductions for previous years

(6) Withholding Tax

• Types of income
• Quantum of tax
• Categories of personnel

(7) Tax Treatment for Gratuity and Compensation Payments

• Definition of gratuity and compensation
• Conditions for Tax free gratuity and compensation
• Rate of tax for qualified exemptions   

(8) Benefits-in-kind (BIK) and Perks & Others

• What are benefits-in-kind and perks
• Formula and prescribed value methods of determining values for VOLA and perks
• Double Taxation Agreement

(9) Key Public Rulings by LHDN

• Perks and benefits
• Seconded employees
• Foreigners in Regional Offices in Malaysia 
• Double Taxation Agreements (DTA)

(10) Tax on Shares Offered by Employer

• Local shares
• Cross-border shares
• ESOS

(11) Preparing the EA Form & Other Documentation  

• Exemptions from tax
• Salary and allowances
• CP38 & CP 500  
• Other documentation