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End of Financial Year HR and Payroll Checklist 2024

End of Financial Year HR and Payroll Checklist MY downloadable

For HR and payroll professionals, the end of the financial year (EOFY) can be a hectic time. Whether it’s balancing the books, taking stock of your employee data or running crucial reports, there’s always plenty to do before the end of December.

If you’re the type that enjoys ticking off a to-do list, we’ve got something to make your busy period more rewarding. Our financial year end HR and payroll checklist includes all the tasks you’ll need to complete in one handy place.

In this checklist, we’ll cover:

  • Key Inland Revenue Board Malaysia (IRBM/LHDN) submission dates
  • Tasks to finalise payroll
  • Data checks to complete
  • Culture and goals review
  • HR policies checks
  • Workforce planning

Download your end of financial year checklist for 2024 today.

End of Financial Year HR and Payroll Checklist MY downloadable

When is the financial year end in Malaysia?

For Malaysian sole proprietorships and partnerships, the official end of the tax year is December 31st 2023. This means that businesses should consider the 2023 financial year as being between 1st January 2023 and 31st December 2023, in line with the calendar year.

As for companies, there is no specified date for the financial year end due to the Companies Act 2016. Since the date is entirely up to the decision of the company, most organisations set the last day of the calendar year, December 31st as their financial year end. Some other businesses make their financial year end the last day of any quarter, such as March 31st, June 30th or September 30th.

What documents do employers need for income tax reporting?

Employers will need to have access to up-to-date documentation from the entire financial year. That includes employee info, bank statements, business expenses, payslips, pay run submissions and more.

This is where effective data recording comes in handy. If you’re looking to save time at the end of the tax year, having HR and payroll software that automatically collects information safely on the cloud means that getting all the data you need takes just a few clicks.

How can Malaysian employers prepare for the financial year end?

Apart from following our financial year end checklist, businesses should ensure they work closely with their accounting and finance teams, possibly engaging with professional advisors or auditors to ensure a smooth financial year-end process and compliance with all relevant regulations.

What forms need to be filled at the end of the year?

Once the end of the year rolls around, several forms should be filled and submitted to wrap up the HR and payroll process:

  • Form EA – an individual statement of remuneration, submission from companies to employees (does not need to be submitted to IRBM/LHDN)
  • Form PCB2 – confirmation that an employer has made all of the tax withholdings for a given period, submission from companies to employees (employees will submit this to IRBM/LHDN)
  • Form CP58 – a commission statement, submission from companies to agents, dealers and distributors
  • Form E – statement of payments made to a business’ employees plus MTD/PCB deductions from the year, submission from employers to employees

Malaysian businesses also have a roster of tax forms to be filled at the end of the financial year, depending on the type of business being taxed:

  • Form B – for sole proprietors
  • Form P – for partnerships, additional Form CP30 for each partner
  • Form C – for companies
  • Form PT – for limited liability partnerships

Check out our key dates for small businesses guide for more information.

What are some common payroll deductions for Malaysian businesses?

The end of the financial year is often a time when you’ll review the deductions you’ve made through payroll – both for reporting and to ensure you’ve made the correct deductions throughout 2023.

There are several payroll deductions that Malaysian businesses will commonly make. These include:

  • Monthly tax deductions (MTD/PCB);
  • Social Security Organisation (SOCSO/PERKESO) contributions;
  • Employees Provident Fund (EPF/KWSP) contributions;
  • Employment Insurance Scheme (EIS/SIP) contributions;
  • Human Resources Development Fund (HRDF) contributions; and
  • National Higher Education Fund Corporation (PTPTN) loan payments if employees have opted into wage deductions.

What other admin tasks should be done at the financial year end?

For HR and payroll professionals, the financial year end can be a great time to take stock. Check that your employee data is accurate across the business, whether that’s visa statuses or employment agreements.

You’ll also need to complete your last payday filing of the year, as well as reconcile your payroll data with what has been reported to IRBM/LHDN, to ensure that it all balances. That includes reviewing the respective statutory contributions for all employees.

From a HR perspective, use this time to check in on company and individual goals for the next year. Whether that’s refreshing your company values or improving your performance review system, make sure your team is well supported to take the company through a successful year ahead.

woman working on laptop

How can Malaysian employers best prepare for the next financial year?

Preparing for a financial year doesn’t have to be hard. Here’s a few tips to help you feel prepared for the next financial year.

Record-keeping is crucial

How are you currently storing your data? If the EOFY comes with a whole lot of dread as you realise you’ll be searching through endless stacks of paper or digital files, it’s probably time to overhaul your record-keeping process. Consider how you can make safe and effective data storage part of the routine.

This is something HR and payroll software can help with. Every data entry is stored securely along the way and can be accessed in a variety of forms, making downloading up-to-date reports at the end of the year a breeze. Goodbye double data handling!

Stay on top of deadlines

There are plenty of dates to be aware of when it comes to running a business, from public holidays to tax submission dates.

If your business is a sole proprietorship or a partnership, don’t forget that all income tax returns should be filed for 2023 by 15th July 2024, and your income tax bill is due by 30th June in the year following the year of assessment.

Meanwhile, if your business is a limited liability partnership or a company, your income tax return is due within seven months of your financial year end, and your income tax bill is due by the last day of the seventh month from the date of closing of accounts.

This isn’t just crucial as a legal compliance issue, but ensures your cash flow for the next year is correct and going to the right places.

See a new tax year as an opportunity

For many people, getting through the end of a tax year can seem like a whole lot of admin. However, just as spring cleaning leads to a sparkling home, think of a new tax year as an opportunity to do things better.

Here’s your chance to try new things, refresh how you organise employment and payroll, and see how your business can flourish. Plus, you’ve got a nice clear deadline to work towards. What can you do before the next financial year to make employment easier?

Simplify your businesses payroll reporting with Employment Hero

Imagine if you could tick off so many financial year end tasks in one go, by storing key information and making IRBM/LHDN submissions on one secure digital platform.

Our all-in-one HR, payroll and benefits platform makes record-keeping, reporting and workforce management easy at the end of the financial year. Learn more about how we can help you at tax time by speaking with one of our small business specialists today.

In addition, check out our Malaysia SME Bizhub for all of the essential information about employment, HR and payroll – in one place.

Download the end of financial year checklist now.

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