If you are a business owner or an HR professional in Malaysia, you will be familiar with the endless demands of payroll.
Managing different tax deductions and paid leaves and ensuring that every employee is paid promptly and correctly is no simple task for any business, small or large. Then there's managing statutory contributions to the EPF retirement and SOCSO schemes or PTPTN repayments or Zakat donations. Adding to these, many companies today are embracing remote work, making managing payroll across different locations also a challenge.
So, what can a company do to resolve these challenges? Businesses can seek the support of a payroll provider.
Here's what you can expect from a payroll service provider.
What do payroll service providers do?
There are different types of payroll service providers that meet the requirements of businesses of varied nature. For instance, an in-country payroll service provider can offer expertise in payroll processing in that particular country to foreign businesses who look forward to launching there. On the other hand, a global payroll provider works across multiple countries and jurisdictions. Although these services can vary according to the requirements of the company, there are certain functions that any professional payroll provider can offer and they are:
Payroll processing
A payroll provider can aid in reducing the time spent on running your payroll by automating the labour-intensive areas of payroll, such as calculations, tax deductions, and payment options. Many payroll providers offer a web-based interface where one can store all the employee information, including name, wages and any mandatory statutory deductions.
These days, time and attendance solutions are also incorporated into the cloud payroll program to make the entire process seamless.
Calculate, deduct and pay taxes
Dealing with employee taxation is one of the busiest times for a business. Ensuring employees have their EA forms and filing the right amount to LHDN on time. Errors in calculating and paying taxes are amongst the most common mistakes and can be a huge risk for companies.
A high-quality service provider eliminates these errors by automatically calculating and deducting the right amount of taxes and promptly forwarding those funds to the relevant agencies.
Compliance
A professional payroll service provider ensures that they develop a payroll system that complies with the country's ever-changing employment and taxation laws and regulations. They meet all the necessary compliance criteria on behalf of your business to ensure that it does not face any legal issues in future. Subscribe for free to receive latest payroll compliance updates for Malaysia here.
Absence Management
Monitoring and keeping track of your employees' absence records, including sick and annual leaves, can be confusing and time-consuming. Payroll providers provide automated and integrated solutions to help you stay organized by properly managing employee absences.
Employee mobile access
With a payroll service provider that offers cloud payroll systems, it would become easy for employees to access their payment details and manage their withholdings whenever they need to from wherever using their mobile devices. Thus, they don't have to wait for you to answer their queries.
Thorough Job Costing
Job costing data is the record of accumulative costs associated with the completion of a project. For payroll, this means providing overviews of the amount and type of work employees provide, either as an individual or a group.
Integration
With the integration of many functions like payroll, time and attendance, and third-party payments, your payroll service provider can save time that is otherwise spent on entering the same information repeatedly.
Digitization
Payroll digitization has helped eliminate workflow bottlenecks typically associated with traditional processes. Collaborating with a payroll software provider can save organizations a lot of time and money.
Using a payroll service provider saves you time, letting you focus on business operations and growth instead of crunching numbers and filing payroll taxes. Besides saving time, an online payroll service ensures that your payroll is accurate and complies with current laws in Malaysia.
