Malaysia payroll is subject to the complex and changeable statutory contribution. Having an efficient and automated Payroll system will help with the payroll process to stay compliant and be prepared for an audit by any related statutory department. If the payroll system is not up-to-date it might have a risk and subject to costly penalties to an organization during payroll audit. Benchmarking the payroll process to ensure compliance is important because it can add value to the organization.

Although payroll audit doesn’t occur annually, it could be years before you are inspected, but there are still risks. If any contribution or tax errors are suspected, organization may trigger an audit request by the relevant department. A check of employer records is likely to be the first requirement from the officer, consisting of the details of the contribution. If the employer unable to satisfy the audit, the employer might involve in a penalty due to not comply with the contribution requirement. Hence, the employer shall always be fully prepared. The type of records normally officer scrutinise will be payroll records and proof of payment. The employer shall furnish the required detail to the officer in the required timeframes.

If a business decided to run its own business’s payroll, an updated and audit-friendly payroll system is important. Choosing an updated and audit-friendly payroll system can be easier than you think if you pay attention to key factors. An audit-friendly payroll system is compliant with transparency and well-organized. Inefficient or inaccurate record-keeping can cause serious problems. A visible audit trail is important, it helps to easily access data from months or even years ago. Whether you have the hard copy records or data stored in the server, you should be clear about accountability, which is, who is responsible for the payroll process, data storage, when, and what detailed changes have been made. During the audit process, there is a time limit for providing information to the audit officer. Hence, quick access to obtain accurate payroll data is very important.

Choosing a payroll system does not have to be difficult. But it does involve the comparing of payroll software service providers and pricing. Deciding on the payroll system that is right for your business depends on your budget and the features required to fit your business need. Make sure that you are confident that employees can easily learn how to use the payroll system before purchase.

Understand that most of the business is focus on the core activities of growing the company, however, it still needs to dealing with non-core functions above efficiently. If the business really doesn’t have much time to spend on these non-core functions, outsourcing will be a good choice for business. This is a workable model and is recognized as a long-term competitive strategy for success.

Select the best value for your money. If you would like to worry-free on your payroll process, just outsource to a trustable vendor today.

Evoresource specializes in providing Payroll Outsourcing. A partner that gives you an edge to manage your organization payroll effectively supported by expertise. We made payroll outsource simple, affordable, and scalable. Enjoy peace of mind when you start Payroll Outsourcing services with us.