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EPF Deduction for Commission

103 Views  ⚫  Asked 10 Months Ago
asked on Dec 11, 2017 at 14:16
by   Josephinehlt
If between company & staff already have a mutual agreement that NO deduction applies to Commission collected due to nature of the business but other benefits (medical, annual leave etc) are standard so can company offer this staff under CONTRACT OF SERVICE with an exclusion clause (eg: your commission shall not be entitled to any statutory deduction), will this contract considered null and void or it's fine with the exclusion clause included?
Thank you. 
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answered on Dec 11, 2017 at 14:34
by   jeff005
edited Dec 17, 2017 at 23:52
 
Read  EPF ACT  legally properly.
Do not be very smart. If a salesman has worked for 10 years and was subsequently terminated by the company, he goes to Court and claims all the EPF that is due to him of RM100,000, the employer will have to bear both the employer and employee's share, On top of that EPF will penalty backwards the company for the 120 months defaulted charges.

Define INCOME  under the EPF ACT ..!!!!
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answered on Dec 11, 2017 at 17:22
by   Josephinehlt
Thank you Jeff for your feedback, much appreciated there. 

If that's the case, will a CONTRACT FOR SERVICE be ok instead due to complication of commission structure thus company is unable to deduct EPF?

Thank you again.
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answered on Dec 11, 2017 at 17:38
by   jeff005
edited Dec 17, 2017 at 23:54
 
due to complication of commission structure thus company is unable to deduct EPF? 
It is time to change your accounting guys.

Whatever is stated may not be voided in the employment contract but EPF will nail the coffin onto the head if an employee reports to EPF that all staff on commissions based have been forced to sign.

Can be done even if you use accounting software. Extra work only ma..
You want the Directors to go to JAIL.!!!
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answered on Dec 11, 2017 at 17:43
by   Josephinehlt
edited Dec 17, 2017 at 23:54
 
I see thank you Jeff for your insights!
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