{"id":876,"date":"2011-06-18T00:01:00","date_gmt":"2011-06-17T16:01:00","guid":{"rendered":"http:\/\/www.nbc.com.my\/blog\/?p=876"},"modified":"2013-10-23T23:42:04","modified_gmt":"2013-10-23T15:42:04","slug":"epf-contribution-by-sole-proprietors-and-partnership","status":"publish","type":"post","link":"https:\/\/www.nbc.com.my\/blog\/epf-contribution-by-sole-proprietors-and-partnership\/","title":{"rendered":"EPF contribution by sole proprietors and partnership"},"content":{"rendered":"<p style=\"text-align: left;\"><a href=\"https:\/\/www.nbc.com.my\/blog\/epf-contribution-by-sole-proprietors-and-partnership\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" style=\"background-image: none; padding-left: 0px; padding-right: 0px; display: inline; padding-top: 0px; border: 0px;\" title=\"epf-logo\" src=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/06\/epf-logo_thumb.gif\" alt=\"epf-logo\" width=\"100\" height=\"110\" border=\"0\" \/><\/a><a href=\"https:\/\/www.nbc.com.my\/blog\/epf-contribution-by-sole-proprietors-and-partnership\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" style=\"background-image: none; padding-left: 0px; padding-right: 0px; display: inline; padding-top: 0px; border: 0px;\" title=\"epf\" src=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/06\/epf_thumb.gif\" alt=\"epf\" width=\"125\" height=\"110\" border=\"0\" \/><\/a><\/p>\n<p style=\"text-align: left;\">Some owners\/partners under the sole-proprietorship and partnership may drawn salaries and allowances for themselves as well as make contributions to Employees Provident Fund (EPF) for their own accounts.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: left;\"><strong><span style=\"color: #0000ff; font-size: small;\">Is EPF contribution compulsory?<\/span><\/strong><\/p>\n<p style=\"text-align: left;\">By virtue of the sole proprietors and partners drawing salaries and allowances for themselves, are they require to contribute the employer\u2019s 12% contribution and deduct 11% from the salaries and allowances and remit this 23% (12% + 11%) contributions to EPF? <!--more--><\/p>\n<p style=\"text-align: left;\">Let\u2019s see the definitions of employer and employee under the EPF rules:-<\/p>\n<p style=\"text-align: left;\"><strong><span style=\"color: #0000ff;\">Who is an employer?<\/span> <\/strong>An employer is a Partner\/Sole Proprietor or a person responsible for the payments of employees&#8217; salaries and operating in Malaysia.<\/p>\n<p style=\"text-align: left;\"><strong><span style=\"color: #0000ff;\">Who is defined as employee under EPF?<\/span> <\/strong>A person who is employed by an employer under a contract of service or apprenticeship either in writing or verbal form and may be stated or implied.<\/p>\n<p style=\"text-align: left;\"><span style=\"color: #ffc000;\"><span style=\"color: #000000;\">Based on the definitions above, sole proprietor or partner is considered as self-employed and is not an employee, hence it is not mandatory to make EPF contributions. However, they are encouraged to make EPF contributions voluntarily.<\/span><\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff; font-size: small;\"><strong>What is the contribution amount that needs to be paid for a self-employed?<\/strong><\/span><\/p>\n<p style=\"text-align: left;\">A self-employed can choose to contribute at a minimum rate of RM50 or a maximum rate of RM5,000. [<em>We would have understand this as every payment is limited to RM5,000<\/em>]<\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff; font-size: small;\"><strong>What is the penalty for a self-employed who make late contributions?<\/strong><\/span><\/p>\n<p style=\"text-align: left;\">No fine is imposed for a self-employed who make late contributions.<\/p>\n<p style=\"text-align: left;\"><span style=\"color: #ffc000;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Some owners\/partners under the sole-proprietorship and partnership may drawn salaries and allowances for themselves as well as make contributions to Employees Provident Fund (EPF) for their own accounts. &nbsp; Is EPF contribution compulsory? By virtue of the sole proprietors and partners drawing salaries and allowances for themselves, are they require to contribute the employer\u2019s 12% [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77,64],"tags":[78,90],"class_list":["post-876","post","type-post","status-publish","format-standard","hentry","category-epf-and-socso","category-malaysia-news","tag-epf","tag-epf-socso"],"_links":{"self":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/876"}],"collection":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/comments?post=876"}],"version-history":[{"count":0,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/876\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/media?parent=876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/categories?post=876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/tags?post=876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}