Payroll Accounting Services in Malaysia are able to provide payroll services to any company that is in need of such.
Back in the day, companies would always hand out payments and salaries to their employees through physical means such as handing them their paper pay slips, giving them checks, and other things.
However, thanks to technological advancements, there are now more ways than one to administer your employees’ salaries.
Today, I am going to talk about the different types of payment methods that you can use for payroll.
Using cash as a means to pay may be old-fashioned by today’s standards, but it is still used by a lot of companies today. In fact, companies can use this as a means to pay seasonal employees on a temporary basis.
For example, if you hire additional sales clerks for the Holiday season, you can give them cash straight away- provided that they keep accurate records of payroll. Companies should also issue 1099 forms as this is required by the Internal Revenue Service. Any employee that gains more than $600 during the fiscal year is required to fill out this form. Failure to comply with this will prompt the IRS to take action and may impose penalties to companies who are found guilty of not paying appropriate payroll taxes.
Accounting firms may use direct deposit systems in order to directly put cash in an employee’s account at given dates during the month. This is usually employed by companies who have a relatively low turnover rate because of how the system is set up.
The workers in the company will provide their banking information to the payroll managers and the company will then be the one to create a direct deposit account to each employee’s bank.
Although you could say that this system is efficient; it may not be favorable for some employees since some banks may charge a monthly fee for this type of service.
Using cash to pay employees is pretty much outdated, which is why some companies would rather hand out checks instead. They are the primary tools that are used by payroll managers simply because they are traceable.
For the company to be allowed to use checks, they must operate under the accrual accounting basis and not the usual and traditional cash basis.
Accrual accounting simply works by noting the income and expenses at the time they occur, which means that it ticks whether or not the money is credited to your account or not.
This is now the conventional method of paying employees. Companies will hand out pay cards and they pretty much act like debit cards that are currently linked to the bank that the organization uses.
Whenever payday comes, the company would simply load up the pay card so that the employees can withdraw the money within a certain timeframe (and they can put it in their own savings accounts afterward).
Because it works like a standard debit card, the company pay card can be used in different transactions. For example, if you want to buy clothes at a shop that supports the pay card, you can use it to pay for those things.