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Responsibilities of an Employer
Both the employer and the employee have specific responsibilities that must be met for things to operate smoothly in the workplace. From the employer’s side, every employer still has the duty of care to employees, even if they only work part time or do not have a written contract with their employees. Before starting the hiring process, you should familiarize yourself with the obligations that come with being an employer.
1. Register an employer’s number (E).
2. Make monthly tax deduction (MTD) from employee’s remuneration based on either the Schedule of MTD or the computerized calculation method and remit the amount of MTD to the IRBM on or before the 15th day of the subsequent month.
3. Employer may only use the e-PCB, e-Data PCB or e-CP39 applications provided through the IRBM’s Official Portal for submission of the statement of MTD or employees’ MTD data.
4. Submit return form of employer (Form E) together with the C.P.8D on or before 31 March of the following year.
- Employer (company and Labuan company) is compulsory to submit Form E via e-Filing (e-E) with effect from remuneration for the year 2016.
- Form E will only be considered complete if C.P.8D is submitted within the stipulated deadline. Employers who have submitted information via e-Data Praisi need not to complete and furnish C.P.8D.
5. Prepare and provide a copy of statement of monetary and non-monetary incentive payment to each agent, dealer or distributor (Form CP58) on or before 31 March of the following year.
6. Keep and retain records for 7 years and make it readily accessible to the IRBM if needed.
7. Prepare and submit the following form (if relevant):
| Form | Due Date | Submission Method |
| Form CP22 Notification of new employee | Within 30 days after commencement of employment | Form can be submitted at any IRBM office |
| Form CP22A Notification of cessation of employment or cessation by reason of death for an employee in private sector | Not less than 30 days before cessation of employment; or Not more than 30 days after being informed of death | Form can be submitted either: online via e-SPC; or at IRBM office which handles the employee income tax number |
| Form CP22B Notification of cessation of employment or cessation by reason of death for an employee in public sector | Not less than 30 days before cessation of employment; or Not more than 30 days after being informed of death | Form can be submitted either: online via e-SPC; or at IRBM office which handles the employee income tax number |
| Form CP21 Notification of employee leaving Malaysia for more than 3 months | Not less than 30 days before expected date of departure | Form can be submitted either: online via e-SPC; or at IRBM office which handles the employee income tax number |
8. Withhold any monies payable to the employee for 90 days or until tax clearance letter is received in the case of cessation of employment, cessation by reason of death or leave Malaysia for more than 3 months with no intention of returning.
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