Firm size and age on non-adopters of monthly tax deduction electronic payment: Negeri Sembilan SME employers

Inland Revenue Board of Malaysia (IRBM) has arranged several electronic platforms for employer group of taxpayers to remit Monthly Tax Deduction (MTD) payments more easily. Even though the online payment has shown progressive support from the year 2014 to 2016 which is from 20% to 24%, if compared to the traditional payment methods it is still far behind as not many employers using MTD e-payment facilities. This study is aimed to find whether there are significant differences between firm characteristics and non-adopters of MTD e-payment. There were two objectives in this study. Firstly, to understand if there is a significance difference between firm age and non-adopters of MTD e-payment and next to understand if there is a significance difference between firm size and non-adopters of MTD e-payment among the employer group taxpayers. In order to meet the objectives, this study was carried out by obtaining secondary data from IRBM. The data was derived from 2,186 SMEs employer files that belongs to IRBM
Seremban branch. Inference analysis methods were applied in this study to test the significant differences between the firm’s demographic characteristics which are firm age and firm size with non-adopters of MTD e-payment. As to test the differences between the firm age and non-adopters of MTD e-payment the T-test analysis was applied and to test the differences between the firm size and non-adopters of MTD e-payment the Analysis of variance (ANOVA) was applied. Through the analysis, noteworthy findings were disclosed in relation to this study. The findings shows both the firm characteristics in this study which are firm size and firm age have significant different with the non-adopters of MTD e-payment.