What kinds of mistakes happen with payroll mistakes and how to prevent that
                     What kinds of mistakes happen with payroll 
mistakes and how to prevent that?
The payroll system takes care of the salary, reimbursement and 
other payment related issues between the company and the 
employees. Almost in every corporate house, business firms, any 
small or medium sized companies have implemented payroll 
software for smooth management of the system. The Malaysian 
companies, manufacturing firms, organizations etc. in maximum 
times use both the HR and payroll Software in Malaysia. But there 
some common mistakes happen sometimes even though there is 
software. So, let’s understand the mistakes and its prevention from 
this discussion.
Mistakes of payroll system?
 Failure in tax deadlines frequently – It is one of the common 
mistakes of this software. This can lead the company to big 
trouble. Missing out the payroll tax deadlines, may raise the 
issue of tarnishing the image of respective company. The 
organization will have to pay hefty late penalties, which may 
cause unwanted financial crunch within the organization. It 
also hampers the employees. 
  Unable to maintain accuracy in data – If there is any fault in 
payroll system, there shall be mistakes in calculating 
employees’ salary calculation, reimbursement etc. These 
procedures may be stand still. For any kind of discrepancies in 
the payroll software in Malaysia, will be a threat to the 
company as well as the employees. An employee puts his/her 
effort throughout a month, to get the remuneration at the end 
of the month. So, if there is any mistake that is as good as 
doing a crime. 
 Inaccuracy in tax calculation – Taxes are very dynamic in 
nature. It varies country to country. Suppose, you have an 
establishment in any Middle Eastern country, or any European/
South Eastern country etc. – all these countries or territories 
have their individual taxation. Therefore, any single mistake in 
tax calculation due to failure of payroll software mistake will 
create big issue in organization. 
 Miscalculation in overtime reimbursement – If there is any 
system error, and then there can be problem in keeping the 
overtime data of an employee. Therefore, there can be issue in
overtime calculation and its reimbursement. In case, both the 
HR and payroll Software in Malaysia, are not working properly, 
then this kind of problem will come up. 
So, now we have to understand how to prevent any organization 
from payroll mistakes, and think for betterment of the company: -
 Firstly, ensure that you are providing the correct data while 
there is any new recruitment, there should be additional 
verification procedures for both the employees and the 
employer. 
 Try to eliminate human error. It happens when you forgot to 
put any data manually in the system. For example – if you 
issued any reward points to an employee, which can be 
reimbursed later. So, if you missed to put this record on to 
payroll software in Malaysia, it may create discrepancies. 
 Keep eye on the security of the system. Avoid manual system; 
rather have cloud-based solutions. That will give much 
authentic data. 
Before implementing the software, you can try free online app for 
Malaysia. If you are comfortable with these systems, then implement
the same for your company.