When it comes to payroll in Malaysia, it isn’t just about counting up all of the hours that your employees have worked, figuring out how much salary you owe them and then issuing various paycheques. A payroll administrator has so many other things to do like making sure that they follow all of the local government requirements and then there are the deductions for health care that need to be taken out, social security, withholding tax from the employee salaries and providing them with the government mandated benefits as well.
This is not something that you can do yourself so you will either have to hire a person full-time to do the job that is going to cost you both time and money or you could reach out to a third-party service provider who will provide you with all that you need with regards to payroll accounting in Malaysia. You want your business to continue to be productive and so this is why it makes more sense to hire an external service provider to do the job for you. The following are just some of the other benefits as well.
- It is more cost-effective – Think of the money that you’re going to have to spend going through the interview process, selecting a suitable candidate and then providing them with essential training. All of this expense can be avoided if you just hire a third-party payroll accounting service provider to do everything that needs to be done and they can do it remotely as well.
- You enjoy their expertise – As was mentioned briefly before, there are so many other things that need to happen as part of payroll and that includes withholding money for taxes and other things that are a requirement of the local Malaysian government department. If you engage with a service provider then they can implement everything that needs to happen and they will stay on the right side of employment law.
- You get to avoid the fines – There is a certain amount of paperwork that needs to be filed with the relevant relation government Department every single year and if these are not submitted on time and in full then fines will follow. This is an expense that you can do without and so by engaging with a payroll accounting service provider, you are not subjected to such fines and maybe even an audit.
- Better data security – If you employ a significant number of people then it is your job to make sure that you protect all of their personal information. You will have to invest in various software and security protocols if you are to take the necessary action to protect everyone’s personal data. Your external service provider above all of this in place already and they will do a number of things like installing antivirus software and encrypting all of the client data.
Hopefully, these four reasons can convince you that reaching out to an external payroll accounting service provider is the best decision for your business today and always.
