e-Payroll to lower operation costs for SME entrepreneurs

The system plays an important role in helping employers manage records digitally while facilitating the contribution process

by ASILA JALIL / Pic by MUHD AMIN NAHARUL

THE newly launched e-Payroll system by the Employees Provident Fund (EPF) is able to lower operation costs for entrepreneurs and those in the small and medium enterprise (SME) industry due to its efficiency in helping employers manage the payroll system.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the e-Payroll solution is among the platforms that support the government’s efforts in providing a more comprehensive social safety net in the country.

“E-payroll plays an important role in helping employers manage records digitally while facilitating the contribution process.

“For SMEs and entrepreneurs, the e-Payroll initiative will lower operation costs and optimise existing human resources to focus on other business-related matters such as marketing,” he said in his speech during the virtual launch of the e-Payroll system recently.

The federal statutory body has launched e-Payroll to facilitate employer’s statutory obligations including EPF contribution on a digital platform.

The e-Payroll ensures security and seamless experience for employers, emphasising on automated circulations of statutory deductions and contributions to regulatory bodies.

The initiative aims at assisting employers, mainly from the SMEs, to fulfill their obligations to employees, as well as to allow employers to digitally store records of their employees including that of salary which would help reduce the time needed to manage operations related to statutory obligations.

Tengku Zafrul noted that the Covid-19 pandemic had pushed many businesses towards the virtual sphere in order to stay afloat amid the uncertainty.

He added that the e-Payroll system is in line with the government’s National Digital Infrastructure Plan, or Jendela; an initiative focusing on spurring digitalisation and optimising Internet usage.

“Digitalisation will help in reducing business costs while simplifying operations,” the minister said.

Meanwhile, EPF chairman Tan Sri Ahmad Badri Mohd Zahir said although the e-Payroll service is designed to assist SMEs, other employers who do not have a digital payroll solution may also utilise the system to enhance operational efficiency.

“I urge employers to take advantage of the e-Payroll facility. There is no subscription fee for the service and access is open to i-Akaun users,” he said in his opening remarks.

The system was developed in collaboration with and endorsed by the Inland Revenue Board, Social Security Organisation and Human Resource Development Corp to ensure accuracy of statutory requirements in the e-Payroll.

EPF said the e-Payroll was well-received by 600 SMEs that had enrolled in the pilot test and soft launch recently.

“The EPF continues to evolve in order to stay relevant in the face of rapid technological advances and dynamic changes in the job landscape.

“Digitalisation will ensure that we are able to offer the highest level of service while meeting the expectations of our members and employers,” Ahmad Badri added.