SOCSO
If contributions are made later than the 15th of the following month (if the 15th is a holiday the deadline will be the last working day before the 15th), a fine of 6% per annum for each day overdue will be charged.
The minimum fine is RM 5, hence if the monthly fine is calculated to be less than RM5 it will be charged at RM 5 per month.
EPF
If contributions are made later than the 15th of the following month (if the 15th is a public holiday, then the deadline is extended to the next working day), interest will be charged for late payment of contribution as follows:
- Interest: The interest rate imposed is calculated based on the dividend rate declared by the EPF Board for each respective year with an additional one (1) per cent. The minimum interest imposed is RM 10. Any total for the interest with sen must be rounded up to the nearest higher Ringgit. Example: If the interest imposed is RM 13.21 this must be rounded up to RM 14.
If the contribution is made later than the last day of the following month then there will be a dividend charge in addition to the interest. This dividend charge will be added to the employee’s EPF saving account.
- Dividend: The dividend rate imposed is calculated based on the dividend rate declared by the EPF Board for each respective year.
PCB
An employer who fails to remit payment on or before the 15th of the following month (if the 15th is a holiday the deadline will be the last working day before the 15th) can be fined and/or imprisoned.
The fine is a minimum of RM 200 and not more than RM 2,000 or 6 months imprisonment or both. An employer who does not deduct MTD or deducts but fails to remit the MTD to IRBM can be prosecuted in a civil court. With this, the MTD not deducted becomes a debt to the Government.
Furthermore, a late payment penalty of 10% will be imposed on the balance of tax not paid after 30th April following the year of assessment. If the tax and penalty imposed is not paid within 60 days from the date the penalty is imposed, a further penalty of 5% will be imposed on the amount still owing.
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