Year-end payroll checklist Malaysia 2026: Form EA, Form E, CP8D and PCB 2(II)

Year-end payroll isn't one task; it's a chain. December's run fixes the year-to-date figures, those figures become every employee's Form EA, and the Form EAs roll up into the employer's Form E and CP8D. A mistake in December shows up in February and March — when it's hardest to fix.

Key deadlines for income year 2026

See the full payroll compliance calendar for December 2026 to April 2027.

Step 1 — Before the December run

• Joiners: do you have a TP3 from everyone who joined in 2026 from another employer? Without it, their PCB and Form EA understate income from the previous job.
• Leavers: were final payments (notice pay, leave encashment, termination benefits) processed with the right EPF, SOCSO, EIS and PCB?
• Transfers within your group: each company is a separate employer for tax — check that each issues Form EA for its own period. See multi-company payroll.
• Benefits in kind and perquisites: company cars, accommodation, phone bills and other benefits must be valued and reported on Form EA.
• Zakat, CP38 and TP1 reliefs: confirm what was deducted and declared through payroll.
• Late leave: unpaid leave approved after its month should be deducted once — not missed, not doubled.

Step 2 — December payroll and bonuses

• Bonuses count for EPF and are taxed as additional remuneration in PCB, using the additional-remuneration part of LHDN's formula.
• Run December after all approvals for the month are in. Re-running a draft is cheap; reversing an approved December run is not.
• Remit December contributions and PCB by 15 January 2027.

Step 3 — Form EA (by 28 February 2027)

Every employee who received remuneration in 2026 must get a Form EA (C.P.8A) showing their total employment income, benefits in kind, perquisites, EPF, SOCSO/EIS, PCB and zakat for the year.

• Reconcile each employee's total gross, EPF and PCB against their December payslip year-to-date.
• Check exempt perquisites are reported in the right part of the form.
• Issue Form EA to leavers too — and to people who moved to another company in your group, for the period they worked for you.
• Keep copies; LHDN can ask for them.

Step 4 — Form E and CP8D (by 31 March 2027)

Every employer files Form E — even with no employees — declaring the number of employees and their remuneration for 2026. CP8D, the employee-level listing, is submitted with it unless you've already submitted the data through e-Data. File on e-Filing via MyTax.

Step 5 — PCB 2(II) and records

Employees sometimes need a PCB 2(II) statement — proof of the PCB deducted each month with LHDN receipt references — for loan applications or tax queries. Generate them once December's PCB is paid. Keep payroll and tax records safely — LHDN generally expects supporting records to be kept for seven years.

Year-end checklist

• ✓ TP3s on file for every 2026 joiner from another employer
• ✓ Leavers' final pay and CP22A (where required) handled
• ✓ Inter-company transfers: each company's period is separate
• ✓ BIK / perquisites valued and coded
• ✓ Bonus PCB as additional remuneration
• ✓ December run approved, contributions paid by 15 Jan 2027
• ✓ Form EA reconciled and issued by 28 Feb 2027
• ✓ Form E and CP8D filed by 31 Mar 2027
• ✓ PCB 2(II) available for staff who request it

How altomateHR helps

• Form EA in LHDN's C.P.8A layout, enabled only when all 12 months are approved, and downloadable by employees in the portal.
• CP8D in LHDN's current 22-field format and PCB 2(II) with receipt numbers per month.
• Handles mid-year starts, months paid in several runs, employer-borne PCB and inter-company transfers.
• Payroll journals post to Xero by tracking category, so your 2026 accounts close with the right staff cost per project.

Read the details in Form EA, CP8D and PCB 2(II) in LHDN's layouts.

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