7 Powerful Benefits of Using Cloud Payroll Software in Malaysia

7 Powerful Benefits of Using Cloud Payroll Software in Malaysia

”Good morning Michelle, how many days of annual leave do I have left? ”

Have you ever gotten an email containing this question? It feels frustrating, doesn’t it?

7 Powerful Benefits of Using Cloud Payroll Software

Picture Source: Unsplash

Gone are the days where you need to perform tiring data entry duties or activities and manually keep track of your employee pay and leave dates. Imagine if you still had to do all the calculations and keep track of the number of leaves for each employee using an excel sheet or filing system — that would be a real headache! Things can get messy and no amount of patience can help you through it.


Payroll processing is one of the vital functions of any Human Resource (HR) department of a workforce. Thanks to advancing technology, it’s now so much easier to manage employee pay with cloud payroll software. The software is used by many Small & Medium Enterprises (SMEs) in Malaysia including payroll outsourcing companies. This enables them to offer better services for their clients.


Before we get into a comprehensive summary on the benefits of cloud payroll software, let’s explore what exactly cloud payroll software is and how it works. We’ll also be revealing some of the best and reliable cloud payroll softwares for businesses in Malaysia.

What is Cloud Payroll Software in Malaysia?

The meaning of ‘Cloud’ should not be taken literally. ‘The cloud’ is actually a term used for computer servers stored on the internet instead of on physical servers. Cloud-based software has become a popular option and includes many types of software including cloud payroll software.


During the current COVID-19 situation, it helps a HR department process payroll anytime and anywhere, ensuring employees receive their paycheque and claims on time.


Cloud payroll software allows your company to record, manage and calculate payroll data and processes securely online instead of relying on your computer’s hard drive.

The software is built to be the ideal payroll solution for businesses. It offers multiple features and unlimited benefits which takes the hassle out of the payroll process. Most offer FIVE (5) key modules. Each module fits basic requirements for businesses like yours in Malaysia.


  1. Profile and account set up for both company and employees
  2. Run payroll
  3. Manage leave application & status, leave balances and entitlement
  4. Claim submission for business expenses and allowances
  5. Payroll report and payslip generation


It’s also an easier way to auto calculate pay deductions such as EPF, SOCSO and tax deductions. In addition, you can easily generate and send electronic payslips to your employees as well.

Thankfully ‘the cloud’ has made our lives easier. Read on for more benefits of cloud payroll software below!

What are the 7 benefits of Cloud Payroll Software?


More and more business owners and organizations are starting to use cloud-based software for its convenient features and ease of use. Most cloud payroll software functions are automated, offering you a more seamless experience which helps you better manage employee wages.


No more printing. No more wasted paper. Less admin work and also less manual reporting is required.


This gives employees, HR managers and directors the flexibility to access the portal remotely from any location using any device (e.g. desktop, laptop, mobile phone etc).


Now, imagine you’re a HR manager or director. Your team can create an annual leave, emergency leave, medical leave or any other type of leave application via an online leave calendar. You can then easily approve it without the need for them to physically print out and submit a hardcopy to you. They can also view their leave balance or retrieve their pay slip without needing to ask you!

More Accurate in Cloud Payroll Software

Human errors are unavoidable, especially when you’re performing a manual salary calculation or tax deductions. But, when it comes to matters such as an employee’s pay and ensuring your employees receive correct payment of salaries every month, accuracy is key.


Employees who are paid on time will have more respect for their company.


A cloud payroll software is a more reliable way to run payroll as it calculates salaries precisely based on the number of hours an employee has worked. It can easily auto-count salary and include pay increment due to a bonus, or auto-deduct pay due to unpaid leave.


Ensuring compliant payroll when changes in statutory payroll contributions are released by our government is important. Cloud payroll software releases the latest version with formula updates to reflect any annual key changes on EPF (KWSP), SOCSO, EIS (PERKESO), Zakat, HRDF, tax benefits and yearly EA form updates made by LHDN etc.


This ensures all details, government reports and labour rules are followed to the letter and are in compliance with the law.


Picture Source: Unsplash


In terms of efficiency, cloud payroll won’t let you down. On top of its accuracy of income calculations, a cloud payroll management system operates in a more efficient manner than many other forms of payroll solutions. You can get things done a lot faster, saving your company precious time in the long run.


The software efficiently automates the calculation of payment to ensure employees are paid on time every month.


Its user-friendly format ensures employees can easily check leave balances and apply for or edit leave applications online. Final management approval can also be done faster and more efficiently.


You can generate all the forms for submission of statutory contribution (EPF, SOCSO, EIS and PCB tax) every month easily using cloud payroll software. Prompt submission is made simple to ensure your company stays compliant.


All payroll reports can be generated in PDF format with just a few clicks!

Saves You Money with Cloud Payroll Software

Having a cloud payroll system prevents you from spending too much money because you don’t need to hire expensive full-time staff dedicated solely to managing payroll.


On top of that, most cloud payroll software are user-friendly and easy to learn, so you won’t have to spend much time training your staff how to use the software. This will enable your company to focus time on other important things like digital marketing training.


Plus, you’ll also save on maintenance costs as cloud-based payroll software reduces IT fees that normally come with an on-site payroll system using a physical server. That’s right! You won’t need a team of IT experts to update your software as all the updates are done automatically by the software houses.


As for the installation of the software, it’s super easy to set up. For any issues, you can easily contact customer support.


Pricing of cloud payroll software is flexible and affordable as the monthly software subscription cost (It’s like an instalment) is calculated based on the number of staff in your organization. Plus, you can unsubscribe at anytime, you’re not bound to a fixed contract.

Cloud Payroll Software Grows With Your Business

What if you’re a small business owner with only a few employees but you’re planning to become a Sdn Bhd business in the near future? You’re just not sure when. You’ve already applied for a business loan at a few banks, but these things take time.


Well, unlike other types of payroll systems, cloud-based payroll software is beneficial because it can ensure your business growth is supported. It offers you the option to easily upgrade the software when you’re ready, based on your business needs. Multi-users with separate access can be granted their own password too.


If you want to grow your business, retaining talents is one of the key factors that will determine your success. Your favourite cloud payroll software plays an important role in eliminating complicated payroll processes and policies which could cause frustration.


Picture Source: Unsplash

Easy Integration

Integration is another additional excellent feature of cloud payroll softwares. This allows your cloud payroll software to be integrated with other cloud-based softwares seamlessly.

A Total Business HR Solution: What are the cloud-based softwares which can link to cloud payroll software?

  • Cloud Accounting Software: Employment and hiring data, cash flow records, salary info and tax details will sync to cloud accounting software. This makes it easier for the accounting department to make bank payments or provide information for an audit.
  • Cloud Shift Scheduling Software: This software is designed to manage employee shift rostering without the need of an excel file.
  • Cloud Time Attendance Software: Designed to track employee working hours and overtime. The daily, weekly and monthly timesheets can be recorded and synced to cloud payroll software to calculate employee salary easily come month end.

Tip: You can contact us if you’d like more advice about cloud software integration.

Better Security with Cloud Payroll Software

Some people have the misconception that storing personal data on a cloud database isn’t secure. This isn’t true.

The truth is, data stored on cloud-based payroll software is actually safer compared to storing it on platforms on-site. Cloud software can prevent ransomware attacks and offers better protection than on-site servers. This is because on-site servers are vulnerable to natural disasters like fires or even technical issues such as computer malfunctions.

All data including employee particulars, documents and previous history stored on cloud-based payroll software is completely protected by a privacy policy and encrypted to ensure no one can access it. Backup of the data is automatic, so you can be rest assured it’ll always be there.

Now that you know how awesome cloud payroll software is and what its capabilities are, you may be wondering which are the best cloud payroll software for Malaysian businesses.

Stay tuned because we’ll be sharing this content with you in a new article (coming soon!) – A detailed comparison of Cloud Payroll Software in Malaysia to increase your knowledge level for learning purposes.

In the cloud payroll software industry, competition is strong. Personally, we think that KakitanganHREasilySwingvy and PayrollPanda are some good responsive options. According to many users, Talenox is also a great platform featuring an intuitive user-friendly interface at a fantastic price.

In fact, we highly recommend this cloud payroll software for its affordable rate and good reviews. If you outsource your payroll to payroll service providers, you may ask them to contact us for more guides or for a software demo session. We’ll be happy to help you!


Change is inevitable, so don’t limit your company. For greater savings, the first step is to take a free 30 days trial and click here to enjoy a maximum of RM1,000 FREE credit* when you sign up for Talenox through us (*Terms and conditions apply) before expiry. You may check your eligibility for this RM 1,000!

All the best!

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