Employer’s Guide To EA Forms in Malaysia

Introduction

Did you know Malaysian employers can face fines of up to RM20,000 for failing to issue EA Forms on time? Every year, thousands of businesses across Malaysia scramble to meet tax compliance deadlines—especially when it comes to EA Forms. Whether you’re running a small business or scaling up, accurate payroll reporting isn’t just a legal requirement—it protects your business reputation and supports employee trust.
This guide breaks down everything employers need to know about EA Forms in Malaysia. You’ll learn what they are, who needs to issue them, how to prepare them, common mistakes to avoid, and how Grof helps simplify compliance for good.

📌 TL;DR – Quick Facts About EA Forms in Malaysia

• 🧾 What: The EA Form (Borang EA) summarises your employee’s yearly earnings and tax deductions—required for their personal income tax filing.

• 👔 Who: All Malaysian employers must issue it to full-time, part-time, and resigned employees.

• 📅 When: Must be issued by 28 February, and linked to Form E, due 31 March.

• ⚠️ Mistakes to Avoid: Don’t skip reporting Benefits-in-Kind (BIK), Value of Living Accommodation (VLA), or ex-employees.

• ✅ How to Simplify: Use Grof’s payroll and accounting services in Malaysia to ensure accurate, timely EA Form compliance—minus the stress.

Don’t risk penalties. Handle EA Forms right the first time with Grof by your side.

What is the EA Form and Why Does It Matter?

The EA Form (Borang EA) is a mandatory document employers must issue to all employees every year. It outlines each employee’s total annual income, tax deductions, and statutory contributions. Employees use this document to file their personal income tax returns with LHDN.

Why it’s important:

• Ensures tax accuracy for employees.
• Demonstrates employer compliance with tax law.
• Avoids penalties under the Income Tax Act 1967.

💡 Pro Tip: Employers must also submit Form E to confirm EA Forms have been issued to all relevant employees.

Who Needs to Issue EA Forms?

Every employer in Malaysia—regardless of company size—must issue EA Forms to:

• Current employees
• Former employees (including those who resigned, retired, or were terminated during the year)
• Contract or part-time staff, if they received employment income

What Goes Into an EA Form?

This nifty form consists of multiple sections that summarise an employee’s total earnings and deductions:

• Gross Salary / Wages / Allowances
• EPF and SOCSO Contributions
• MTD / PCB Tax Deductions
• Bonus and Overtime Payments
• Benefits-in-Kind (BIK) – e.g., company car, medical benefits
• Value of Living Accommodation (VLA) – e.g., rent-free housing

Employers must use the official LHDN template to ensure standardised reporting.

Key Dates and How to Prepare EA Forms

Important Deadlines

• EA Forms must be issued to employees by 28 February each year.
• Form E must be submitted to LHDN by 31 March.

Step-by-Step Preparation

1. Collect Employee Data
   Gather payroll records, statutory deductions, and taxable benefits for each employee.
2. Calculate BIK and VLA
   Use the prescribed methods from LHDN to compute benefits accurately.
3. Download the Correct Template
   Ensure you use the latest official form from LHDN’s portal.
4. Double Check Employer Details
   Include the correct employer name, tax reference number, and registration number.
5. Distribute Forms Securely
   Send hard copies or use encrypted digital platforms to deliver forms to staff.

Common EA Form Mistakes Employers Must Avoid

Even small errors on these forms can lead to tax issues for your employees and financial penalties for your business. Avoid these common slip-ups:

• ❌ Incorrect or Missing MTD/PCB Values
  Always cross-check against payroll software or LHDN’s monthly reports.
• ❌ Failing to Report BIK or VLA
  Even non-monetary benefits must be declared.
• ❌ Forgetting Resigned Employees
  Issue EA Forms to all employees, even if they only worked a few months.
• ❌ Mistakes on Employer Details
  Mismatched company names or tax numbers may invalidate the form.

Need help with statutory reporting too? Don’t miss our annual return filing guide to keep your compliance in check all year long.

How Grof Simplifies EA Form Compliance for Employers

At Grof, we know the Malaysian tax system inside and out. Our mission is to remove the stress from your payroll and tax responsibilities.

With Grof, you can:

• ✅ Automate EA Form generation with verified data.
• ✅ Get professional guidance on benefits reporting (BIK, VLA).
• ✅ Ensure all forms are issued and submitted ahead of deadlines.
• ✅ Avoid costly fines and build trust with your team.

As a trusted corporate services provider in Malaysia, Grof supports startups and SMEs with payroll management, tax compliance, and accounting services in Malaysia. Whether you’re handling your first EA Form or need full-scale support, we’re here to help.

Final Thoughts: Stay Compliant, Stay Focused on Growth

Issuing EA Forms is more than a compliance exercise—it reflects how you manage responsibilities as an employer. Doing it right protects your business and your employees. Doing it wrong risks delays, penalties, and reputation damage.

Stay ahead of deadlines, reduce errors, and partner with a reliable expert. Let Grof handle the admin while you focus on growing your business.

🔍 Explore all our corporate solutions to streamline your payroll, tax, and compliance tasks with confidence.