Malaysia Year-End Payroll Activities and Tips 2020 for SAP SuccessFactors Customers
As 2020 comes to an end, now is the time to start preparing for filing year-end payroll activities: Form E – Employer Year-End Tax report, Form 8A (EA) – Employee Year-End Tax Filing, and PCB II – Tax Statement of Payment by Employer.
In most organizations, many of the benefits-in-kind items are paid outside of payroll. At year-end, this information needs to be obtained from Finance and included in your payroll system to consolidate into your tax form preparation.
Form E – Employer Year-End Tax must be submitted to the Inland Revenue Department by 31 March 2021, via the tax authority portal.
The deadline for submitting Form 8A (EA) – Employee Year-End Tax Filing is 30 April 2021. For online submission, the deadline is 14 May 2021. Visit https://ez.hasil.gov.my/cl/ for more details. Employers should provide the Form 8A (EA) and PCB II form to their employees before 28 February 2021.
Here is a list of activities to complete in the December or January timeframe. Before running down the current list, you should make sure to download calendars and pay dates and confirm that they are correct for the upcoming year.
Malaysia Year-End Payroll Activities
Here’s a list of tasks to do before December:
- Record Benefits-In-Kind items for the year 2020. This information will be reported in Part B3, F of the EA form. If required, a breakdown of BIK items in Form Note F would be beneficial.
- Run payroll annual summary report (with month breakdown) if there are clarifications required on the details of income or benefits-in-kind reported in the tax form.
- Record tax receipts in the system. Tax receipts are reports in the PCB II form.
- Follow up on HR Support Pack (HRSP) activities (if there are changes to Statutory Forms, contributions, etc.) SAP SuccessFactors Employee Central Payroll (ECP) customers should test and implement SAP HRSPs (support packs).
- Test payroll calculations and posting.
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Once you’ve conducted all the tests, reviews, and reminders necessary, you are set to carry out some of the required year-end payroll activities.
Here’s what to accomplish in December:
- Ensure all employees on leave have benefits delimited, carry forward and new entitlement generated for 2021
- Validate holiday calendars, pay period, pay dates and provide any required configuration changes
Wrapping up Activities in January
If you’ve done the legwork ahead of time, that should take some pressure off when finalizing your yearly payroll and kicking off the next year.
In January, you’ll need to reconcile and balance your Tax form files. Staying on task with your year-end payroll activities means less stress for you and your payroll team.