Understanding Bahagian A (A1–A4) in LHDN Form E

Borang E / Form E Part A (A1–A6) reports employee numbers for the year. 

In Worksy, A1–A4 are automatically calculated based on payroll records, progressions, and the selections made in the Calculation Settings pop-up. 

This guide explains each field and how the system determines the totals.

Refer here to know how to prepare and download the form: Preparing LHDN Form E in Worksy

A1 – Number of Employees as at 31 December 2025

• Automatically generated from employees with an active Worksy profile on 31 December 2025
• Includes all payroll records, such as:
  • Full-time, part-time, contract, intern, foreign worker, and expatriate employees.
  • Management staff (directors, LLP partners, board members).
• If they were not resigned yet by 31 December → they are counted in A1.
  

A2 – Number of Employees Subject to MTD

• Worksy looks at payroll records and counts employees whose payroll generated MTD / PCB during the year. Please ensure your payroll records are accurate.
• If there's no income tax deduction = not counted in A2.

A3 – Number of New Employees

• Determined by Worksy from:
  • Date Hired within the year
  • New Joiner Report
  • Progression screen: Rehire for rehires or Update for internal transfers (or timeline in employee's profile}

Note:

• Employees who resigned and were rehired in the same year appear in both A3 and A4.
• Interns hired as permanent employees must have a new employee profile to ensure A3/A4 totals are accurate. Then, mark the intern profile as resigned.

Examples:

• New hire in December → A3
• Employee transferred in from another company → A3
• Employee resigned, then rehired in the same year → A3

A4 – Number of Employees Who Ceased Employment or Died

• Calculated from the Progression screen. Includes resignations (resigned/terminated/ceased) and transfers out.
• If HR updates them as resigned in the Progression screen → A4.
• Multiple resignations for the same employee in the same year are treated as a single record.

*A5 – Number of Employees Who Ceased Employment and Left Malaysia (“Leavers”)

Who to include:

• Employees who resigned or ceased employment specifically to leave Malaysia during 2025

*Worksy unable automatically flag leavers; HR must verify who qualifies for A5.

*A6 – Reported to LHDNM (if A5 is applicable)

• Enter 1 (Yes) if the cessation of employment for leavers was reported to LHDNM.
• Enter 2 (No) if not, contact the LHDNM branch in charge of the employee’s tax file.

We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.