TaxSavvyMY

New employee notification

We hired someone new. Do we tell LHDN?

The situation

Employers notify LHDN of new employees within the set time using the CP22 form.

The law

  • Sec 107, Income Tax Act 1967 and Income Tax (Deduction from Remuneration) Rules 1994: Employer deducts monthly tax (PCB / MTD) and pays it by the 15th of the next month
  • Sec 83, Income Tax Act 1967: Employer furnishes Form E by 31 March and gives each employee Form EA by end of February

What it means for you

Also register the employee with EPF and PERKESO. Collect TP3 if they had a previous employer in the same year so PCB is right. A missing TP3 is the most common reason a new joiner owes tax at year end. The employee can also submit TP1 to have reliefs reflected in monthly PCB.

What to do

  1. Submit CP22.
  2. Register with EPF and PERKESO.
  3. Collect TP1 and TP3.
  4. Add to payroll.

We can do this for youMonthly payroll compliance: PCB, EPF, SOCSO and EIS: MYR 200

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