What is Payroll

Payroll is the sum total of all compensation a business must pay to its employees for a set period of time or on a given date. It is usually managed by the accounting department of a business; small-business payrolls may be handled directly by the business owner or an associate. Payroll can also refer to the list of employees of a business and the amount of compensation due to each of them. It is a major expense for most businesses and is almost always deductible as such. Payroll can differ from one pay period to another due to overtime, sick pay and other variables.

Payroll is a basic necessity for any business – you have to pay your employees, make the correct deductions and file taxes. However, most of the business owner are not aware of their responsibility under Malaysia rules and regulations. Some of the common rules and regulations that employers need to comply during payroll computation are:

• Workman’s Compensation Act 1952
• Children and Young Persons (Employment) Act 1966
• Factories and Machinery Act 1967
• Employment (Restriction) Act 1968
• Employee Social Security Act 1969
• Employee Social Security General Rules 1971
• Employees Provident Fund Act 1991
• Occupational Safety and Health Act 1994
• Income Tax (Deduction from Remuneration) Rules 1994
• Employment Act 1995
• Human Resources Development Act 2001
• Minimum Retirement Act 2012
• Minimum Wages Order 2016
• Employment Insurance System Bill 2017

Links related to this post：

Sample of Employment Contract – CLICK TO DOWNLOAD

Latest Salary Computation Sheet – CLICK TO DOWNLOAD

Sample of Sub-contract Wages – CLICK TO DOWNLOAD