Large corporations can afford to hire and retain their in-house team for payroll processing. But unfortunately, small and medium sized, especially, startups do not have such budgets for operations costs. Thankfully, payroll outsource Malaysia firms prove to be a lifesaver.
Opting for such services helps small companies to ensure their crucial resources focus on core functions. At the same time, the firm can leverage professional expertise provided by virtual accountants.
Direct bank deposit instead of a paper check
Small companies often find it challenging to link payroll processing and direct bank deposits. Due to manual bookkeeping practices, they have to issue paper checks and handle plenty of paperwork. There’s always a possibility of human error or fraud. On the other hand, outsourcing payroll eliminates the hassle entirely. Firms use digital payroll software and give clients access to the same. Employees get their salaries via bank deposits. Automation also minimizes errors and fraud risk.
Reducing operational costs and avoiding penalties
Both small and large Malaysian firms are responsible for withholding tax returns and making Monthly Tax Deductions payments to the country’s Inland Revenue Board. Failing to do so during a specific timeframe can result in a large penalty for the company or even a jail term for responsible individuals.
Highly secured cloud-based systems
Virtual payroll management companies use highly secured cloud-based systems for storing and processing information. As records are digital, there’re less chances of information theft. Payroll outsource companies allow clients to access these digital HR management systems for uploading, auditing payroll records. Small businesses simply cannot afford to spend and invest in such a system for their in-house teams.