Monthly Payroll Processing Checklist

By Axecta Management Services, Kuala Lumpur · Last verified: 29 October 2026

Short answer. Run payroll in a fixed sequence each month: collect changes, compute gross to net pay, apply statutory deductions and employer contributions, review and approve, pay employees and the agencies by their deadlines, file and archive, then reconcile to the ledger. A written checklist makes the cycle repeatable and reduces errors.

Axecta provides payroll processing and employer compliance for companies across Malaysia. Talk to our team.

1. Collect changes

Before the cut-off date, gather:

2. Compute gross to net

3. Statutory deductions and employer contributions

Need this done for you? Axecta’s payroll processing and employer compliance team can handle this for your company. See the payroll processing and employer compliance service.

See EPF, SOCSO and EIS explained.

4. Review and approve

A second person should check:

Obtain written approval from an authorised person.

5. Pay employees and agencies by deadline

Put each deadline in a calendar. See the 2027 compliance calendar.

6. File and archive

7. Month-end reconciliation to the ledger

Match payroll totals to the general ledger: salaries, employer contributions, liabilities for unpaid items. Send the summary and payment proofs to your accountant as part of the monthly document pack.

Make it repeatable

Name an owner for each step, set an internal cut-off earlier than the agencies’ deadlines, and keep a list of what changed each month. Axecta’s payroll team can run this cycle for you, from receiving changes to filing and reconciliation.

Control points that prevent penalties

ControlWhenOwner
Inputs locked by cut-off3 working days before pay datePayroll
Second-person reviewAfter computationFinance lead
Statutory payments scheduledAt approvalPayroll
Proof of payment filedSame dayPayroll
Ledger reconciliationMonth-endAccountant

Use the tables on KWSP and PERKESO, and LHDN’s PCB method, and check the table date on every run. See EPF, SOCSO and EIS explained.

An exception log

Record anything unusual: late changes, corrections, back-pay. A short log makes the next month easier and helps if an agency queries a payment.

Frequently asked questions

What are the steps in payroll?

Collect changes, compute pay, apply deductions, review, pay, file and reconcile.

What is the payroll cut-off?

The date by which all changes must be submitted for the month. Set it before the pay date.

What must be paid each month?

Net salaries, plus EPF, SOCSO, EIS and PCB by their due dates.

How do I reconcile payroll?

Match payroll reports and payments to the ledger and agency records. Axecta does this monthly.

What is a good internal cut-off?

A few working days before the pay date, agreed with the team.

Who should review payroll?

Someone other than the person who prepared it.

Where do I log exceptions?

In a simple sheet kept with each month’s payroll file.

Want this checklist run for you every month?
Axecta Management Services is a full-suite accounting, company secretarial and consulting firm in Kuala Lumpur, serving companies from SMEs to MNCs.
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Official sources to check

This article is general information and not legal, tax or accounting advice for your company. Rates, thresholds, deadlines and procedures change, so confirm current requirements with the sources above or with Axecta.