Outsourcing your payroll processing to a service provider can significantly boost your team’s efficiency. Payroll is filled with administrative burden, requires a high level of attention to detail and is realistically only a sub-function of your HR department. By outsourcing this function, you allow your teams to focus on strategic business drivers that grow your company.  

Here is the importance:  

  1. Localised Knowledge

One of the most significant advantages of payroll outsourcing is having a dedicated team of professionals conducting this critical process for you, all of whom are familiar with Malaysian labour rules. As a result, your company will benefit from years of knowledge as well as the stringent processes and multi-level cross-checking that payroll vendors are required to follow. 

  1. Time/cost saved

Payroll processing necessitates time and meticulous attention to detail. Calculating payroll taxes and statutory filings, like Social Security Organization (“SOCSO”) in Malaysia, handling payroll enquiries and disbursement; whilst being simple administrative tasks can be extremely time consuming. Engaging with trusted outsourcing payroll vendor would help the owner to focus more on achieving business goal.  

  1. Compliance with government regulations

Government regulations and guidelines change frequently, and small business owners may not always be aware of the most recent requirements. Professional payroll providers are required to be up to date on all rules, regulations, and changes in tax rates across the country.  

  1. Data Security 

According to Malaysia Law and regulation, HR department needs to adhere to local laws such as the Personal Data Protection Act 2010 (“PDPA”). Payroll and employee personnel details are incredibly sensitive information that HR handles on a regular basis, therefore engaging with most reliable payroll outsourcing service provider that store their data on highly secure cloud-based servers and protected by high – end encryption is highly important.

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