21 Best Payroll Softwares in Malaysia [2023 Updated]

Who are the people who carry the business on their shoulders? Your staff!

Your business cannot function without your employees. In fact, the size of a business is often measured by the number of employees it has. But managing the staff is another story.

Small and Medium Enterprises (SMEs) are the backbone of Malaysian businesses. But if you are a startup or a fairly new company, managing your employees is a challenging task. Managing your employees means providing them salaries on time, calculating their incentive, bonuses and overtime not to mention the tax that entails it. If you cannot process these tasks properly, your employees will not retain for long and on the other hand you will be on hotspot from legal authorities for tax issues.

Hence, you need a reliable payroll software to handle all your employee related transactions. From keeping track of your employee’s working hours to calculating their salary precisely, a payroll software can save both your time and money. It will help you to calculate your employment tax as well as file them so that you are also updated on your tax matters with the authority.

How do you implement an efficient payroll software?

We say, you choose a payroll software that best suits your business operation. That way, all your payroll tasks will be automated so the payroll process will be faster with less human errors. Besides, you won’t need a super expert to handle your business payrolls as the payroll software is efficient to handle complicated wages calculation as well as tax filing.

Let’s find out what happens when Malaysian businesses try to handle their payroll on their own.

Typical Payroll Challenges Small Business Owners Face

1. Time consuming

If you are a small business, each of your employees’ time must be put to increase your business revenue. However, if you decide to handle the payroll transactions on your own, then you have to dedicate a portion of your valuable time in the internal processes that are not producing any returns. If you have a suitable payroll system then you can better use this time to increase your sales and profit margin.

2. Lack of Statutory Insight

When you handle your payroll on your own, you have to be knowledgeable about the statutory regulations, deadline and structure to calculate your contributions properly. Or else you may be subject to hefty fees from legal authorities which can shoot up your overhead cost significantly and give you a bad name if you don’t comply with regulations.

3. Need to hire experienced admin

If you have to recruit someone who has adequate knowledge of handling payroll, then you have to go for an experienced admin. This may cost you much more than installing a payroll software, which can be easily operated by a less experienced employee.

4. Take care of complicated tax calculation

Year end taxes are one of the big headaches of businesses. You have to make sure everyone has their EA form and you file the correct tax amount to LHDN on time. Without help of any payroll software, this process can become super messy super fast and easily overwhelm you with stress and worry.

5. No one to help or assist

Tax seasons or overwhelmingly complicated salary calculations can strain you thin if you try to do it all alone. Without anyone to help, it is easy to lag behind on your payroll tasks and make mistakes i