Malaysia Payroll Checklist – PDF
What is a Payroll Checklist?
A payroll checklist is used to ensure that all payroll tasks are completed accurately and on time each pay cycle. It helps employers verify salary calculations, statutory deductions, and compliance with Malaysian labour and tax regulations, reducing the risk of payroll errors, penalties, and employee disputes.
What Statutory Contributions Must Be Checked in a Payroll Checklist?
A Malaysia payroll checklist must include verification of EPF (KWSP), SOCSO (PERKESO), EIS, and PCB (monthly tax deductions). Employers should confirm that contribution rates are correct, wage ceilings are applied properly, and submissions are prepared before statutory deadlines.
Who Can Use a Payroll Checklist?
A payroll checklist should be used by the HR or payroll team, as they are directly responsible for salary processing, statutory deductions, and employee records. The finance team may also be involved to verify payroll costs, cash flow, and reporting accuracy.
For effective oversight, business owners or senior management should review payroll outcomes periodically to ensure compliance, accuracy, and internal controls are in place.
Is Payroll Software Better Than a Payroll Checklist?
While payroll software automates salary calculations, statutory deductions, and submissions, it cannot completely replace a payroll checklist. A checklist acts as a control mechanism to verify that all payroll tasks, such as approvals, reviews, adjustments for bonuses, unpaid leave, or off-cycle payments, are completed accurately.
Using a checklist alongside payroll software provides an additional layer of accountability, ensures compliance with Malaysian regulations like EPF, SOCSO, EIS, and PCB, and helps catch errors that automated systems might overlook. It also serves as a documented record for audits and internal reviews, making payroll processes more reliable and transparent.
The following checklist will provide you a step-by-step guide to running payroll in Malaysia.
