Cloud-Based Payroll Software: How The Payroll System In Malaysia Works


Malaysia’s payroll system is broadly the same as many countries. The main components of the salary of employees in Malaysia include:

  • basic pay
  • allowances
  • perquisites
  • overtime
  • incentives

The employer and employee contribute to the payroll to be deducted from the employee’s salary. The payroll processing will be at ease using the cloud-based malaysia payroll system.

Cloud-based payroll software and its benefits

Cloud-based payroll software is a system for payroll management where you can access and operate everything to control the payroll from onboarding employees to ensure compliance to handling exit processes remotely, called cloud. The cloud-based payroll system is an extreme support for employers operating remotely, including the payroll department.

It will allow employees to work from different locations with access to the same info they would have access to from the office. Cloud-based payroll software ensures the following benefits:

  • safe payroll transactions
  • data maintenance

The software helps the process of the payroll system with:

  • fine-grained security protocols
  • preventing data breach
  • unauthorized access

Benefits of the cloud-based payroll software

The software promotes two several advantages:

  • Operational advantages
  • Core payroll advantages

Cloud-based payroll software frees the businesses from expense and complexities of purchasing and maintaining on-premises systems. From the perspective of the head of finances, there are no massive savings in cost and capital expenditure, regardless of the business’s size.

It will be easier for your IT department to use cloud systems. Unlike the legacy on-premises systems, which require significant in-house work, and updating every few years, cloud payroll systems will be upgraded by the vendors as often as needed.

Empower businesses to become more efficient and faster

When prospective clients recently asked why they wanted to switch to the cloud-based payroll system, it is because of these reasons:

Best at calculating payroll

  1. The system is not dependent on today’s fast-paced mobile and data-dependent world
  2. It allows business owners to access payroll information anywhere
  3. The cloud-based payroll system responds faster to employee requests and gets the work done faster.

Does cloud-based payroll software need data storage?

Yes, cloud-based payroll software requires data storage managed by the cloud service provider rather than the user using the software. In a cloud-based payroll system, data storage is handled on servers owned and maintained by the service provider, commonly in large data centers.

When you use cloud-based payroll software, you can store on the server information, such as:

  • payroll data
  • employee information
  • tax records
  • other relevant data

The setup allows users to access the payroll system and data from anywhere with an internet connection without managing physical servers or worrying about local data storage. The cloud service provider takes care of the following factors:

  • data security
  • backups
  • maintenance of the infrastructure
  • freeing users from managing and maintaining their own servers

The model provides scalability and flexibility to reduce the cost and complexity of traditional on-premises solutions.

Many companies today are using cloud-based payroll software to make the work easier and get faster access. Many small businesses are reluctant to adopt new software due to the upfront cost involved when setting up. Disruptions in cloud technology made business software affordable for businesses of all sizes.