Are you being mired in HR paperwork?
Are your payroll practices proving to be too much of a hassle?
Or are you just so encumbered by the increasingly convoluted laws and regulations, the glaring failure in the negotiation for better deals, the dissatisfaction stirring among employees – that you just can’t focus on your core business processes.
Now that’s a real danger.
Business owners – especially for SMEs – cannot afford to ignore these operating inefficiencies. Not in our competitive business landscape today. And that’s where PEO come in. They have something which small firms don’t. Leverage. Economies of scale. Bringing big-business benefits to small firms.
So yep, let’s get straight to the point.
It is ideal for every company to conduct payroll audits, whether in-house or third party, to ensure optimal performance of payroll processes. In particular, payroll audits significantly curtail both financial and regulatory risks. It allows your organisation to deal with problems proactively via continuous adjustments and corrections.
Truth be told, no system is flawless. There are many opportunities for mistakes, and there will be mistakes. Ultimately, if you are looking to scale your business, you should be ready to confront perplexing payroll problems.Nevertheless, payroll audits greatly reduce unintentional errors and fortify financial controls over your business. All in all, payroll audits should be a regular function of your payroll process.
In recent news, the Parliament of Malaysia has just passed the Employment Insurance System (EIS). As has been noted, Malaysia saw to a loss of more than 38,000 jobs, especially in the retail, manufacturing and quarrying sector in 2016. Being a trading nation, Malaysia is highly susceptible to disruptions in the global economic chain. Therefore, this initiated the development of the EIS 2017 Bill, to serve as a financial buffer against the ill effects of the economic downturn.
The EIS Act went into effect on 1st January 2018, and all companies or enterprises with one or more employees are required to comply. Contributions were initiated since 1 January 2018 and payouts for retrenched workers will begin in 2019. Furthermore, exemptions are only applicable to the self-employed, public servants, domestic helpers and foreign workers. All in all, the EIS serves as a safeguard measure to assist retrenched workers through funding from both employers and employees.
The meaning of Loss of Employment is stipulated under section 30(1) & (2) of the Act. It also extends to retrenched staff who experienced sexual harassment or constructive dismissal at the workplace. This scheme is administered by the country’s Social Security Organisation (Sosco), to provide temporary financial assistance up to six months for each retrenched employee.
The EIS is based on a fixed rate basis. The contribution rate for the EIS consists of 0.2% from the employer and 0.2% of the employees’ monthly salary, totaling to 0.4% contribution. Moreover, it is subjected to a monthly contribution cap of RM59.30 for those with earnings RM4,000 and above.
The Insurance system consists of a list of activities that complement financial assistance. This includes training programmes, re-skilling, career counseling and job-seeking assistance. They effectively aid the Insured Persons (IP) to return to the workforce in the shortest possible time. Employees at an age range of 40-50 are most likely to benefit from this scheme. In addition, this moderates losses from any business contraction, downsizing or bankruptcy.
Altogether, failure to comply with EIS would result in a hefty fine not exceeding RM10,000 or imprisonment for a term no more than two years, or both, upon conviction.
AYP Malaysia provides comprehensive HR and payroll services that ensure continuous compliance with the new EIS. Contact us for error-free payroll processing for monthly financial contributions!
Nurturing talent and keeping the talented
In today’s globalised economy, organisations depend strongly on creativity and innovation in order to stay ahead of the competition. In addition, talent plays a fundamental role in organisations through knowledge creation. Knowledge creation, as explained by Bligh et al. (2006), is highly dependent on the ability of organisations to integrate the ideas and abilities of individuals with different approaches. To add on, Thorne and Pellant (2006) define a talented individual as “someone who has the ability above others and does not need to try hard to use it. They excel with ease and grace.”
Online recruitment and its alternatives
The 21st century is the Information Age (also known as the Computer Age, Digital Age, or New Media Age). Information revolution has enabled people to communicate quickly and interactively. Undoubtedly, the explosive development of the Internet and social networking have disrupted and transformed our traditional way of life.
Consequently, social media, online games, online news, online shopping and online portals have all mushroomed and leaped into the spotlight. the In same backdrop, e-recruitment or online recruitment activities have also since been on the rise, becoming an integral part of our working life.
Enabling the Future: Innovation, Women's Empowerment, Technology & Democracy
The 11th World Women’s Forum opens in France, Deauville on the 14th of October 2015. More than 1,300 men and women from 73 countries have gathered together. We discussed various pertinant topics, ranging from socio-cultural concerns to economic development issues. The forum engages world issues from the perspective of women. Hence, I am honoured to be Singapore’s representative for this forum.
The 3-day forum was built on the theme of “Energizing the world!”, of which more than 40 seminars were held. These seminars focused on how to leverage on the digital age of advanced science and technology to meet the basic needs of all human beings. The aim is to increase the survival rate and create a sustainable social development model. We touched on several discussion points which include environmental protection, technology, innovation, education, finance, healthcare, careers, media etc.