Skip to main content
5 Reasons to get a payroll system in malaysia

5 Reasons to get a payroll system in malaysia

from  November 1, 2021 | 7 min read

According to both small and large organisations, payroll processing is the most time-consuming part of running a business. It demands a great deal of time and attention to ensure accurate payroll calculation, payments, benefits administration, and more.

Since  payroll is a crucial yet complicated human resource function, having a payroll system would be a great idea. Such a software solution can instantly run payroll, calculate tax liabilities, and even generate payroll reports.

With this technology, payroll staff can ease their frustrations from manually organising excel spreadsheets and calculating figures by hand, and most importantly—from the possible IRS penalties and unmotivated, furious employees.

If your business still practices manual payroll processing, now is the time to make a switch. Look for a reliable payroll software provider in Malaysia to reap the benefits of utilising payroll system.

Here are a few advantages of an online payroll management system:

1. Reduce human errors 

Errors in payroll data can have a variety of repercussions, including legal difficulties between the company and the employee. Thankfully, payroll systems can quickly manage computations whilst ensuring the  accuracy and efficiency of payroll. 

Payroll software comes with features that significantly decrease human mistakes. Assume you're inputting payroll for a salesperson's commission and instead of RM200, you enter RM20,000 instead. If your payroll software doesn't have a notification system, it will produce a check based on this information. This may be a real hassle to fix, and your employee would become frustrated as you figure out what to do next.

When looking for a payroll system in Malaysia, consider one with alerts and notifications features. Automated payroll reminders will provide alerts for any payments that are out of the ordinary. The software notifies you to look at discrepancies from the previous payroll. You can then quickly correct the problem – and voilà, crisis averted.

Also, most payroll solutions allow software integrations. They can be integrated with existing business systems, such as time and attendance software, HR software, and accounting software.

For example, when payroll software syncs with your HR software, you can keep track of new W-4 forms and changes to employees’ benefits and raises, enabling a more seamless payroll process.

2. Save administrative time

Payroll is demanding because of the large number of processes required to keep things in order. When handled manually, calculating hours, administering benefits, tax planning, and employee data upkeep might take many hours.

Automating your payroll will help your business and payroll team  save time. HR payroll specialists will be better able to focus and be more productive at work as manual activities are eliminated, improving employee morale.

Here are a few tasks that payroll systems can automate::

  • tax filing
  • employee profiling
  • salary computation
  • benefits administration
  • garnishments deduction
  • payroll reports generation

Having payroll software in Malaysia - or anywhere else for that matter - is also useful to help stay on top of changing tax requirements, provided you keep it up to date with the required information.

3. Increase data security 

Security is an essential consideration that many businesses neglect. Payroll contains highly sensitive information that can lead to identity theft, fraud, potential data breaches, and more.

Increase Data Security - Payroll System

To ensure the security of your payroll data, look for a payroll system with access rights controls. 

Role assignments provide authorisation to the sole person who has access to this data. The least secure means of storing sensitive payroll information include paper and excel spreadsheets.

4. Adapt your business needs

A payroll system is adaptable to the way your business operates. Whether you run payroll weekly or monthly, the compensation structures you employ for different jobs, perks, and bonuses, a payroll system can be adjusted and adapted to meet the specific needs of your company. This significantly minimises the administrative work required to ensure that all criteria are met continuously.

5. Generate reports easily

Payroll data is critical to a company's strategic goals, hence, the need for a payroll system.

Generate Reports Easily - Payroll System

Since payroll software keeps track of employees’ total hours, helps with tax preparation, and updates employee profiles automatically, payroll professionals can create reports and statements with a single click. They allow you to link each transaction that is made with supporting information, such as purchase orders and invoices, which will validate any payments that look unusual.

Other things audit trails can do:

  • Guard against fraud
  • Ensure corporate accounts are as accurate as possible
  • Provide insights into the health of your company.


Organisations are continuously attempting to operate at maximum efficiency, 24 hours a day, seven days a week, indicating maximum profits. Some payroll systems allow for integration, others allow software products to input into a payroll system from other automated or related sources to fit into the company structure.

Having a reliable payroll software system in Malaysia is vital to the efficient and successful running of any business. By allowing you to accurately stay up to date with all the relevant information for tax filing, employee benefits, and also allow for the accurate internal reporting, HR systems provide an infrastructure that exists to support all other company functions.

A solid online payroll system like Unit4 Prosoft can help streamline your operations and suit company demands while also ensuring compliance and security.

Unit4 Prosoft

Unit4 Prosoft have been serving customers in Asia for 30 years and is trusted by over 1,000 businesses across the APAC region in the manufacturing, healthcare, retail, construction, and professional services industries. Unit4 Prosoft HRMS has modules that support every aspect of your HRMS programs and allows you to manage people’s entire hire-to-retire cycle with a central control center and database. Your people get the flexibility and freedom to have what they need—how, when and where they need it.