Why You Should Outsource Your Payroll? 

Payroll Outsourcing: A Wise Choice for Today’s Companies 

Payroll processing has grown in complexity. With LHDN’s tax regulations, EPF, SOCSO, and EIS payments, and the 2026 e-invoicing requirement, HR departments face increasing pressure.  That’s why more and more Malaysian companies — from startups to regional SMEs — are deciding to outsource payroll to professional providers.  Outsourcing isn’t just about making things easier. It has an impact on saving money following rules and lowering risks.  In this article, we’ll look at why outsourcing payroll makes sense for Malaysian businesses in 2025 and how to pick the right partner. 

What Is Payroll Outsourcing? 

Payroll outsourcing means hiring an outside expert or company to handle your company’s payroll tasks — from working out salaries and tax deductions to creating payslips and sending in required contributions.  These providers take care of: 

• EPF, SOCSO, EIS, and PCB (MTD) compliance 

• Payroll tax filing to LHDN 

• Employee payslips and e-submissions 

• Year-end EA and E forms 

• Payroll audit reports 

In Malaysia, companies choose to outsource payroll as a smart move. This helps them compliance, scalability, and automation without spending a lot on HR setup. 

Benefits of Payroll Outsourcing 

1. Get Back Time and Cut Costs 

When you let others do payroll, your HR team doesn’t have to do boring repeating jobs. You don’t need to: 

• Get new people or teach current staff about payroll 

• Buy or fix payroll computer programs 

• Always learn about new tax and work rules 

A company like Info-Tech handles everything — letting you concentrate on growing your main business.  Cost insight (2025): Businesses cut 20–35% of operational expenses by contracting out payroll rather than running it in-house. 

2. Stick to Local Rules 

Payroll mistakes or delayed submissions can lead to hefty fines under Malaysia’s Employment Act, LHDN, and EPF laws.  Outsourcing gives you access to experts who keep up with: 

• PCB (Potongan Cukai Bulanan) and income tax adjustments 

• EPF, SOCSO, and EIS contribution levels 

• Labour law revisions 

• E-invoicing and digital reporting needs 

Your business steers clear of penalties and audit dangers through proactive compliance management. 

3. Boost Precision and Productivity 

A single mistake in payroll calculations can lead to employee unhappiness or legal troubles.  Companies that provide outsourced payroll use automated systems to ensure they compute every deduction, allowance, and overtime .  Info-Tech’s cloud payroll solution offers you: 

• Automatic paycheck calculations 

• Instant data checks 

• Payroll reports ready for audits 

• Digital pay stubs you can see on your phone 

This leads to fewer errors quicker processing, and more trust from employees. 

4. Boost Data Protection 

Payroll info has private personal and money details — hackers want this stuff.  The best outsource companies use tough bank-level coding, safe cloud computers, and multi-step logins to guard your info.  When you outsource, you also cut down risks from inside data mess-ups or people getting in who shouldn’t. 

5. Access to Payroll Expertise and Technology 

Payroll outsourcing links you with certified experts who manage payroll .  These professionals grasp Malaysia’s changing work environment, including: 

• New tax relief structures (YA 2025) 

• Foreign worker payroll regulations 

• PCB and EA Form automation 

Meanwhile, outsourcing companies use advanced cloud payroll platforms that work with HRMS, accounting, and e-invoicing systems — providing you with up-to-date accurate operations. 

How to Pick the Right Payroll Outsourcing Service Provider 

Picking the right provider can determine your payroll success. Here’s what you should consider: 

1. Define Your Payroll Needs 

Write down what you need: how many workers you have when you pay them, if you have offices in different places, and what rules you must follow.  This helps you find companies that can grow with your business.  Info-Tech provides custom payroll services for all kinds of businesses — from new ones to big companies.

2. Make Sure They Follow All the Rules 

Check if the company follows these rules: 

• EPF, SOCSO, and EIS payments 

• LHDN PCB reports 

• EA & E Form creation 

• Work law rules 

Ask how they handle LHDN online reports and online bills — you’ll need both by 2026. 

3. Look at How Well They Work with Other Systems 

A good payroll provider should work well with your current systems, including: 

• Accounting Software (e.g., Xero, SQL, QuickBooks) 

• HRMS Platforms (like Info-Tech HRMS) 

• Time Attendance & Leave Systems 

Working together gets rid of manual data entry, keeps information up-to-date, and cuts down on mistakes. 

4. Get to Know Pricing Models 

Providers offer: 

• Pricing based on employee numbers 

• Monthly service packages 

• Extra costs for reports or system access 

Be sure to ask about any hidden fees for legal filings or off-schedule payments. 

5. Look into Reputation and Support 

Search for providers with: 

• Solid performance history in Malaysia 

• Customer feedback or industry recognition 

• Local support team on hand 

A trusted partner like Info-Tech provides round-the-clock help, up-to-date compliance info, and personal account managers. 

The Rise of Payroll Outsourcing in Malaysia (2025 Trend) 

As the country pushes ahead with its shift to digital systems and e-invoicing more companies realize they need dependable payroll specialists.  A 2025 HR Digitalization Study shows that 67% of Malaysian SMEs now hand off payroll tasks, either partially or fully.  The reasons stand out: 

• More complex compliance rules 

• Managing staff working from home 

• Greater emphasis on key business goals 

Read More: Payroll Outsourcing Service Providers in Malaysia 

Info-Tech: Your Top Choice for Payroll Outsourcing 

Info-Tech Malaysia stands out as a top provider of payroll and HRMS solutions in the country catering to over 25,000 companies across the region.  Our Payroll Outsourcing Covers: 

• Salary calculations & statutory submissions (EPF, SOCSO, PCB, EIS) 

• Online payslips and electronic filings 

• EA & E Form production 

• Compliance reports each month 

• Web-based portal for HR and leadership teams 

Reasons Companies Rely on Us: 

• Payroll software approved by LHDN 

• Information stored on secure, ISO-certified platforms 

• Specialized payroll experts 

• Seamless connection with Info-Tech HR, Leave & Accounting platforms 

• Ready for e-invoicing to meet 2026 regulations 

Conclusion 

When you outsource your payroll, you don’t just save money — you make a smart choice that boosts accuracy, keeps you compliant, and speeds things up.  As payroll and tax rules change in 2025, companies that team up with pros like Info-Tech can work without worry, cut down on risks, and grow their business.  Want to make your payroll easier? Let Info-Tech take care of your payroll, compliance, and reports — so you can zero in on your business.  Contact Us For A Free Demo! 

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