Payroll Outsourcing Malaysia

• The process starts with our team engaging with your business in a detailed discussion. This helps us to understand your payroll needs, frequency, number of employees, and any specific requirements. A thorough review is considered to personalize the service as per the needs of your business.  

• Once our team clearly understands your business needs, we proceed with the system setup. Our experts then configure a payroll system and combine it with your present HR system. We also set up the profiles of employees, upload salary structures, tax rules, and leave balances while also ensuring that the system is fully compliant with the Malaysia’s Employment Act and Lembaga Hasil Dalam Negeri (LHDN) requirements.  

• Our experts ensure that your business is registered with the Malaysian authorities and finalize the payroll policies that consists of pay periods, deductions, benefits, and allowances.  

Step 4- Monthly payroll input 

• Tetra Consultants then calculate the monthly salaries, which also include new employees, unpaid leave, and overtime hours. We then use this to calculate your gross salary deductions, as well as net pay.  

• After the calculation of net pay of employees, our team drafts a payroll report that is sent back to your internal finance team to be reviewed.  

• Once the draft gets approval from your team, we will then move ahead with the payroll process. Salaries are then distributed through the medium of bank transfer.  

• Tetra Consultants then submit all your payments and statutory filings of your business to Malaysian government bodies within a specific duration. Our team ensures computations with all the mandatory requirements, such as: 

• Employee Provident Fund (EPF) 

• Social Security Organization (SOCSO) 

• Employment Insurance Scheme (EIS) 

• Monthly Tax Deduction (PCB) 

• Our team then generates detailed payroll reports, which consist of management summaries, accounting entries, as well as statutory remittance documentation. Tetra Consultants also helps with year-end processes like the EA form (annual income statement), and tax filings.  

• Furthermore, at Tetra Consultants, we also provide regulatory compliance consulting services to ensure that your enterprise is easily able to adjust in the changing regulatory environment of Malaysia.  

Common challenges of Payroll Outsourcing Malaysia and how we can help 

Compliance and statutory issues 

• In-house team finds it difficult to keep up with frequent changes in Malaysia’s tax laws, labor legislations, as well as reporting requirements, which causes errors in the payroll process. At Tetra Consultants, our experts are up to date on tax and labor law changes and our team effectively handles statutory deductions while also filing returns on time. This reduces the risk of audit and fines.  

Handling multiple pay schedules  

• Businesses that have a diverse workforce often find it difficult to manage different pay cycles, which leads to confusion among internal team and increases the risk of errors. At Tetra Consultants, our team can effectively manage diverse pay cycles, which reduces the disruptions in cash flows, and manual reconciliations.  

Data security  

• Companies are often scared to share sensitive information of their employees like salary, banking, and other information with third-party service providers as it increases the chances of data breaches. At Tetra Consultants, we have invested in secure, and encrypted cloud software, and our team has regulated access which protects sensitive information. Furthermore, our team also complies with international and local data protection laws to maintain the confidentiality of our clients.  

Employee queries 

• Most of the companies have found out that third-party service providers are not familiar with their employees, which leads to delayed responses, and dissatisfaction among employees. At Tetra Consultants, we have a dedicated team who work on resolving employee queries, addressing issues promptly, ensuring continuity.  

Documents required for payroll outsourcing Malaysia 

• Employment contract  

• Tax declaration forms 

• Timesheets/Attendance records of employees 

• Statutory forms, this includes Form EA, Form E, and other forms relevant for EPF, SOCSO, AND EIS 

• Identity documents like the National registration identity card (NRIC) for locals whereas passport for foreign employees 

• Details of bank account  

• Commission slips and bonus approvals 

• Leave applications 

• Expense claim slips 

Costs for payroll outsourcing Malaysia 

• The cost for the payroll outsourcing Malaysia depends on multiple factors which consists of number of employees, frequency, and if you need additional services such as tax advisory, and year-end reporting. While companies view outsourcing payroll as an additional expense, it has usually been proven as a cost-effective option, as it frees up the administrative burdens of the in-house team, and enables them to focus on their core operations. At Tetra Consultants, we have transparent pricing structures, customized as per the needs of your business, with no hidden fees and extra charges.  

Industry specific payroll outsourcing Malaysia  

• Tetra Consultants caters to the unique payroll requirements of multiple industries. We customize our payroll solutions to suit the varied industrial norms, regulations, as well as employee benefit structures. Here are the main industries that we serve in: 

Banking and financial services 

• The banking, finance, and insurance sectors have highly structured pay scales, commissions, and incentives. Our team handles tax deductions, regulatory compliance, as well as confidential handling of sensitive financial information.  

Healthcare 

• Our team manages the payroll of medical personnel with dynamic shift patterns, allowances for night and hazard duty, and adherence to healthcare labor regulations.  

Engineering and manufacturing 

• We understand that this industry consists of hourly wages, overtime, statutory benefits, and different shifts. Our experts manage accurate time tracking, compute overtime, and adhere to labor laws that regulate factory workers and operational staff.  

Life sciences 

• This industry consists of pharmaceuticals, biotechnologies, and companies involved in manufacturing medical devices. These industries need specialized allowances, bonuses linked to their R&D achievements, and adherence to strict labor laws. Our experts ensure adherence to relevant regulations and also manage complex employee benefit schemes.  

Information and communication technology  

• The ICT sector consists of a myriad of compensatory models that consist of flexible salaries, remote worker payments, and project bonuses. Tetra Consultants integrates flexible work systems in order to ensure timely statutory contributions and address the diverse needs of employees as per their contracts.  

Why choose Tetra Consultants for payroll outsourcing Malaysia 

• Tetra Consultants is a trusted service provider of corporate solutions, which also includes payroll outsourcing to local SMEs and international businesses. Here are the main reasons why businesses choose us: 

• Global expertise- At Tetra Consultants, we have more than ten years of experience working in multiple jurisdictions.  

• Transparent pricing- Tetra Consultants has a transparent pricing structure, ensuring that our clients know exactly what they are paying for.  

• Compliance-first- At Tetra Consultants, our main focus is on regulatory compliance, ensuring that our clients do not have to pay any fines or penalties.  

• End-to-end solutions- Tetra Consultants manage all the functions of your payroll. This consists of monthly salary processing to year-end reporting along with compliance audits.  

• Contact us, and our team will get back to you within 24 hours.  

FAQs