Complete Guide to Employer Registration

Complete Guide to Employer Registration

If you are an employer in Malaysia, it is essential to register your business with three key government agencies: the Employees Provident Fund (EPF), the Social Security Organisation (SOCSO), and the Inland Revenue Board of Malaysia (LHDN). Each registration serves different purposes, from retirement savings to employment injury protection and income tax. This guide will walk you through the steps and requirements for registering with EPF, SOCSO, and LHDN, ensuring that your business remains compliant with Malaysian laws.

For businesses that need assistance with these registrations, CentralHR offers employer registration services, helping you navigate the process with ease.

Why Employer Registration is Important

Registering your business with EPF, SOCSO, and LHDN is not only a legal requirement but also ensures that your employees receive the necessary benefits and protections, such as retirement savings, accident and injury coverage, and compliance with income tax obligations. Failure to register and comply with the regulations can lead to penalties, legal issues, and loss of reputation.

If you’re unfamiliar with the registration process or want to ensure accuracy, CentralHR can manage the entire registration process on your behalf.

1. Employer Registration with EPF (Employees Provident Fund)

The EPF is a mandatory savings scheme that helps employees save for their retirement. As an employer, you are required to register with EPF within seven days of hiring your first employee.

Step-by-Step Process for EPF Registration

• Step 1: Gather Required Documents
  Before starting the registration process, ensure you have the following documents ready:
  • Form KWSP 1
  • Form 49 or Superform (SSM registration)
  • MyKad or passport copy of the sole proprietor/partner/director
  • Certification of company registration (SSM)
    
    
• Step 2: Register Online
  • You can register online through the EPF website (https://secure.kwsp.gov.my/employer/online/registration?0) via the i-Akaun portal. Follow the on-screen instructions to complete the registration process.
    
    
• Step 3: Submit the Documents
  • Once you’ve completed the online registration, you will be required to submit the necessary documents to the nearest EPF office. Alternatively, some documents may be uploaded directly to the i-Akaun portal.
    
    
• Step 4: Receive Employer EPF Number
  After successful registration, you will be assigned an employer EPF number. You are now responsible for making monthly EPF contributions on behalf of your employees.

Need assistance with EPF registration? Let CentralHR handle your employer registration, ensuring a smooth process without any delays.

EPF Contribution Rates

• Employers are required to contribute 12% or 13% of the employee’s monthly salary, while employees contribute 11%.
  
• Contributions must be made by the 15th of the following month.

2. Employer Registration with SOCSO (Social Security Organisation) & EIS (Employment Insurance System)

SOCSO provides employees with social security coverage under two schemes: the Employment Injury Scheme and the Invalidity Pension Scheme. As an employer, you are required to register your employees with SOCSO within 30 days of hiring them.

Step-by-Step Process for SOCSO Registration

• Step 1: Gather Required Documents
  You will need the following:
  • Borang Permohonan Enrolment Penggunaan Portal Assist
  • Borang 1 – Pendaftaran Majikan
  • Borang 2 – Pendaftaran Pekerja
  • Borang SIP 1 – Pendaftaran Majikan
  • Borang SIP 2 – Pendaftaran Pekerja
  • Borang SIP 1A – Borang Pemberitahuan Majikan
  • Borang SIP 2A – Borang Pemberitahuan Pekerja
    
    For Domestic Worker, replace Borang 2 to:
  • Borang Pendaftaran Pekerja Domestik
    
    For Foreign Worker, replace Borang 2 ke:
  • Borang Pendaftaran Pekerja Asing
  • Borang Pengisytiharaan Orang Tanggungan Pekerja Asing
    
    For Foreign Worker, Borang SIP 1 & 2 are not required.
    
• Step 2: Login to Assist System
  • Fill in Borang Permohonan Enrolment Penggunaan Portal Assist and email to idportal@perkeso.gov.my.
  • Receive the temporary ASSIST ID from PERKESO.
  • Login to ASSIST using the given ID.
    
    
• Step 3: Register As Employer In ASSIST
  • Fill in employer details in ASSIST.
  • Add employees alongside their details in ASSIST.
  • Upload the scanned forms and supportive documents.
  • Submit and receive confirmation email from PERKESO.
  • Kindly refer to ASSIST Guideline for more information.
    
    
• Step 4: Receive Employer SOCSO Number
  Upon successful registration, you will receive your SOCSO employer number, and you must begin contributing to SOCSO for your employees.

SOCSO registration made simple! Contact CentralHR to manage the SOCSO registration process for your business, ensuring compliance and timely contributions.

SOCSO Contribution Rates

• Employers contribute between 1.75% and 2.25% of the employee’s monthly salary, depending on the employee’s earnings.
  
• Contributions must be made by the 15th of the following month.

3. Employer Registration with LHDN (Inland Revenue Board of Malaysia)

LHDN is responsible for overseeing income tax compliance in Malaysia. Employers are required to register with LHDN for the purpose of making monthly tax deductions (MTD/PCB) on behalf of their employees.

Step-by-Step Process for LHDN Registration

• Step 1: Gather Required Documents
  To register with LHDN, you will need:
  • A copy of your company’s incorporation documents
  • Company registration number (SSM)
  • A copy of the director’s or employer’s IC or passport for foreigners
    
    
• Step 2: Register with LHDN Online
  Go to the LHDN website (https://mytax.hasil.gov.my/) and select the e-Daftar option. Follow the instructions to complete the registration form and submit your application.
  
  
• Step 3: Submit Supporting Documents
  You may be required to submit your company documents physically to the nearest LHDN office or upload them online, depending on the requirements at the time of registration.
  
  
• Step 4: Obtain Employer Income Tax Number
  After successful registration, you will receive your employer income tax number. You are now required to deduct income tax (PCB) from your employees’ salaries and remit it to LHDN.

Unsure about LHDN registration? CentralHR can handle the entire registration and ensure your business stays compliant with income tax regulations.

MTD/PCB (Monthly Tax Deduction)

• MTD/PCB is the income tax deduction from employees’ salaries, based on their income level and tax bracket.
• Employers must make PCB payments by the 15th of each month.

Making Monthly Contributions and Submissions

Once you have registered with EPF, SOCSO, and LHDN, your next responsibility is to ensure that monthly contributions and payments are made accurately and on time. Here is a quick overview:

• EPF Contributions: Must be paid by the 15th of the following month through the i-Akaun employer portal.
  
  
• SOCSO & EIS Contributions: Must be paid by the 15th of the following month via the SOCSO ASSIST Portal.
  
  
• MTD/PCB Payments: Must be paid by the 15th of the following month via LHDN’s e-PCB Plus system (MyTax)

If managing monthly contributions and filings seems overwhelming, CentralHR offers payroll services that ensure all your statutory payments are made on time, with no hassle.

Ongoing Compliance

Maintaining compliance with EPF, SOCSO, and LHDN is critical to avoid penalties and ensure your employees receive their entitled benefits. Here are some key things to keep in mind:

• Keep Records: Ensure that you maintain proper records of employee salaries, deductions, and contributions. This includes payroll records, EPF statements, SOCSO receipts, and tax deduction documents.
  
  
• Stay Updated: Employment regulations and contribution rates may change, so it’s important to stay informed. Regularly check for updates from EPF, SOCSO, and LHDN to ensure your business remains compliant.
  
  
• Report Changes: If there are any changes to your business or employee details (e.g., salary adjustments, new hires, or resignations), report these to EPF, SOCSO, and LHDN in a timely manner.

For a stress-free compliance process, CentralHR can manage ongoing submissions, statutory contributions, and any updates to your employee information.

Conclusion

Registering with EPF, SOCSO, and LHDN is an essential step for any business in Malaysia that employs staff. By following the steps outlined in this guide, you can ensure that your business complies with Malaysian law and provides your employees with the necessary protections and benefits.

If you need assistance with the registration process, CentralHR is here to help. We offer employer registration services, ensuring that all your registrations with EPF, SOCSO, and LHDN are handled accurately and efficiently. Contact us today for more information on how we can support your business.

For more resources on payroll management, statutory contributions, and compliance, check out our other articles on CentralHR.