HR outsourcing, PEO and EOR service providers in Malaysia

A PEO, or professional employer organization, is a type of HR outsourcing service known as co-employment. In this arrangement, the PEO service provider performs various employee administration tasks, such as payroll management and benefits administration, on behalf of a business. Some PEO service providers also have strategic services, but no two are exactly alike, so it’s important to research providers and compare their capabilities. In short, PEO is specialised in handling HR outsourcing requests for their clients. In general, PEO service providers are usually offering three core main services:
  • Contractor & freelancer management services
  • Employer of record (or EOR) service
  • Payroll outsourcing service

When should you consider using an HR outsourcing or PEO service?

PEO services (or known as EOR services) are ideal for market entry. Their key benefits include rapid market penetration, with the ability to onboard compliant teams within 48 hours through the in-house local entities in Malaysia, low setup and recurring costs compared to traditional company formation services, limited liability as the PEO service providers assume legal employer responsibilities for the employees, and an exit strategy option through company deregistration. PEO / EOR service provider also serves as a viable alternative, enabling the busiensses to retain staff even after entity closure.

Partnering with a Professional Employer Organization (PEO) offers a multitude of benefits that can significantly impact your company's growth trajectory and operational efficiency. By leveraging the strategic expertise of a PEO service provider, you not only gain access to a wealth of knowledge and resources but also ensure comprehensive protection and support throughout your business journey.

1. Payroll and Tax Filing: PEO services streamline payroll processes and handle tax filings, alleviating the burden of managing complex payroll tasks. With integrated payroll systems, they minimize errors and redundancies, ensuring accuracy and efficiency in financial operations.

2. Benefits Administration: Through a co-employment arrangement, PEO services provide access to top-tier benefits packages, including health insurance, dental care, and additional employee perks. Managing employee enrollments and processing benefit claims becomes seamless under the guidance of the PEO service providers.

3. Compliance Expertise: PEO service providers employ compliance specialists who stay abreast of ever-changing regulatory landscapes. They navigate intricate payroll tax laws, reporting requirements, unemployment insurance, and other compliance aspects, shielding your business from potential fines and penalties.

4. Human Resource Support: PEO services complement existing HR teams or provide comprehensive HR services if needed. From strategic guidance to administrative support, they offer expertise in areas such as employee relations, performance management, and policy development, augmenting your HR capabilities.

5. Talent Management Solutions: Some PEO services providers extend their services beyond HR administrative functions to encompass talent management. They facilitate end-to-end recruitment processes, implement strategic hiring initiatives, and offer employee training and development programs to nurture a skilled workforce.

Most recommended HR outsourcing / PEO / EOR service providers in Malaysia

1. Corford Asia

Corford Asia is the leading PEO and HR company that is offering HR outsourcing and PEO services to a wide range of clients ranging from SMEs to MNCs. Corford Asia helps companies to ensure that their payroll activities adhere to the country’s tax obligations and comply with employment legislation. Choosing Corford Asia allows you to reduce costs and eliminate the need for extensive training associated with an in-house payroll team.

Key Differentiators:
1. Transparency is our priority.
From PEO service proposals to legal documentation and monthly payroll reports, we ensure complete transparency without hidden fees, empowering you to venture into Malaysia with confidence.

2. Benefit from dedicated support.
With a dedicated account manager overseeing all your PEO requirements, you'll enjoy streamlined communication and efficient coordination with our team.

3. Stay compliant, stay ahead.
Embark on your expansion journey in Malaysia while staying compliant with local regulations, thanks to our comprehensive corporate services and advisory solutions.

Key Highlights:
  • Experienced HR outsourcing / PEO / EOR service
  • Up-to-date with regulatory compliance
  • Flexibility in payroll solutions
  • Scalable payroll outsourcing services for businesses of any size
Website: Corford Asia

2. Wecorporate

WeCorporate, recognized as one of the leading providers of HR outsourcing services in Malaysia, offers a range of flexible payroll solutions tailored to your business needs. Choosing the payroll service provider allows you to reduce costs and eliminate the need for extensive training associated with hiring an in-house payroll team. With a commitment to staying abreast of the latest regulations, they ensures that their staff is continuously updated, providing you with peace of mind and regulatory compliance.

Despite being an outsourced solution, they guarantees the same level of quality and attention to detail as an in-house payroll team. Their meticulous review of expenses and overtime claims helps optimize operating costs, ensuring efficiency and cost effectiveness for your business.

They offers scalable HR outsourcing services that meet your specific requirements. Additionally, they accommodate part-managed payroll arrangements, providing flexibility and convenience for businesses with varying needs.

Key Highlights:
  • Flexibility in payroll solutions
  • Up-to-date with regulatory compliance
  • Efficient organization of payments with statutory compliance
  • Option for part-managed payroll arrangements
Website: Wecorporate

3. Alchemy Consultancy

Small and medium enterprises often grapple with a common challenge: a shortage of manpower, particularly in crucial departments like HR. Balancing numerous responsibilities, businesses frequently struggle to achieve their full growth potential.

Addressing this issue head-on is Alchemy. By entrusting payroll responsibilities to this leading provider of payroll services in Malaysia, business owners can redirect their focus towards growth and revenue generation, confident in the knowledge that statutory requirements are diligently met.

Tailored specifically for small and medium enterprises, the HR service provider offers an affordable HR payroll service. What sets this offering apart is the inclusion of a cloud-based HR payroll software subscription at no additional cost, providing added value and convenience.

Key Highlights:
  • Customized HR services for small and medium enterprises
  • Enables business owners to prioritize growth and revenue
  • Ensures compliance with statutory requirements
  • Cost-effective HR payroll service
Website: Alchemy Consultancy

4. Crowe

Crowe, committed to delivering unparalleled HR outsourcing and payroll services in Malaysia, assists companies in the meticulous preparation of employees' monthly payroll and payslips, ensuring accuracy and compliance with statutory regulations. Additionally, they orchestrate seamless payment processes while adhering to all necessary deductions.

As a valued client, you'll enjoy the convenience of simply reviewing and approving the payroll, freeing you from the burden of intricate payroll tasks. Moreover, the payroll service provider goes beyond payroll management, offering expert advice on HR-related technical matters, eliminating the need for senior HR personnel within your organization.

Backed by a team of seasoned HR service consultants, they provides invaluable guidance to ensure your company's compliance with Malaysia's tax obligations and employment laws. By entrusting your payroll responsibilities, you not only establish a sterling reputation for your company but also demonstrate your commitment to timely tax payments, bolstering your standing as an employer of choice.

Key Highlights:
  • Precise preparation of monthly payroll and payslips
  • Efficient organization of payments with statutory compliance
  • Reduction in the need for senior HR personnel
  • Expert assistance in navigating tax obligations and employment laws
Website: Crowe

5. CentralHR

CentralHR caters to businesses of all sizes, offering comprehensive HR outsourcing services tailored to meet the unique needs of both small and large enterprises. Equipped with cutting-edge payroll systems, their team of payroll specialists adeptly manages intricate payroll outsourcing with precision and efficiency.

In addition to the standard preparation of employee payrolls and payslips, the payroll service provider goes above and beyond by offering customized reporting services. Whether you require income tax forms, online payment files, or listing and payment forms, their experts can process tailored reports to suit your specific requirements.

Furthermore, they employs notification services to ensure timely reminders for important document submissions, keeping clients informed and organized throughout the payroll process. Renowned as one of the premier providers of HR payroll services in Malaysia, the payroll service provider owes its reputation to the combined expertise of its highly experienced staff and its seamless integration of the latest payroll technology tool.

Key Highlights:
  • Comprehensive HR payroll services for businesses of all sizes
  • Utilization of cutting-edge payroll systems
  • Customized processing of various statutory requirements, including income tax forms
  • Proactive notification system for document submission deadlines
Website: CentralHR

6. Propay Partners

At Propay Partners, your work holds immense significance, and they recognize the importance of not only adapting to changes in your enterprise lifecycle but also understanding the dynamics of your fast-paced, digitally-influenced workforce.

In response to the current global landscape, the payroll service provider has proactively enhanced their HR operational efficiency, embraced cloud technology, and embraced innovative work arrangements to navigate unforeseen challenges. With over two decades of experience, they cultivated strong partnerships with global MNCs, specializing in streamlining HR payroll outsourcing and facilitating employee mobility solutions.

Renowned for their commitment to keeping clients at the forefront of innovative payroll technology, Propay Partners continuously explores disruptive processes, offering boundless possibilities for their clients' success.

Key Highlights:
  • Leading HR outsourcing service
  • Flexibility in crafting HR payroll solutions based on your needs
  • Partners with local and overseas companies – of all sizes
  • Reasonable rates in the industry
Website: Propay Partners

Bottom Line

There you have it, over 6 HR outsourcing service providers in Malaysia for you to engage with.