Question 1: Can employer register after 31.03.2021? Say 30.04.2021, as the levy exemption is up to 31.05.2021.
No, you need to register not later than 30 days from the effective date of Expansion of Act [i.e. 01.03.2021].
[Refer to Section 13(1) of PSMB Act 2001 and Regulation 4(1) of Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy (Amendment) Regulation]
To avoid enforcement action by HRDF, you are advised to register before 30.03.2021. (HRDF officer can imposed penalty for non-compliance)
01.03 – 31.05.2021 is only for levy exemption under Section 14 and Section 15 of PSMB Act 2001.
[Refer to PU (A) 84 Pembangunan Sumber Manusia Berhad (Exemption of Levy) order 2021]
Question 2: If company has less than 10 staffs after registered, what can the company do?
You can opt to deregister under Section 16(2) of PSMB Act 2001, if you have less than 10 staffs for three consecutive months. You are required to submit application to Corporation for de-registration together with any relevant documents to prove such decrease.
However, you will need to register again if you have 10 staffs in future.
Alternatively, you can continue contribute 1% on remaining 9 staff without deregister. The company is not required to inform if changes in number of workers. The company only need to contribute according to number of remaining staff.
[Refer to Section 15(5) of PSMB Act 2001]
Question 3: If I de-register or I close down my company? Can I get a refund?
No, you will not be refunded.
When an employer is re-registered within a period of two years from the date of deregister, the company shall continue to be eligible to receive financial assistance or other benefits to which the employer was entitled prior to the deregistration.
[Refer to Section 16(2) of PSMB Act 2001]
For closure of company
No balance will be refunded and balance of levy will be transferred to the HRDF General Reserve.
Question 4: Shall HQ register for all branches?
Yes, if HQ and all branches under one registration number (ROC/ROB).
But, if HQ and branches are separate entity, then they need to register separately.
Question 5: How about if HQ and branches have different EPF or SOCSO number?
HQ can register first, then branches register under HQ. HRDF will assign number to branches like [xxxxx_(Branch 1)], [xxxxx_(Branch 2)]. The company is required to inform HRDF.
Question 6: All employers must submit Form 1 regardless number of employees or even a dormant company?
Yes, Form 1 is for a declaration forms and do not tick voluntary register when submit the form.
If you are not liable to register under the Act, the application of Form 1 will be rejected and the employer will receive a rejection letter.
If you failed to submit Form 1 within 30 days, a compound of RM2,000.00 will be imposed.
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Published : 26-Mar-2021