Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 77

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 77
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 our standard procedure, we perform test run to make
sure that the output for each employee is accurate. Test run may be conducted for one to two months during the implementation period for
comparing our calculations generated through our system with those done by the end-user using their existing payroll procedures. Adjustments
have to be made if there is any error identified during the test run. Once the test run is completed, the implementation group will conduct
a “penny test” as part of our standard procedure by depositing a dollar to each employee’s bank account to ensure that
the transaction can be completed successfully. The test run on the system and the “penny test” may be conducted more than
once until no transaction error is identified.

When the implementation group
is satisfied with the test results of the payroll system, the payroll system will be ready for delivery of monthly services.

Monthly delivery of services

Updating of monthly information

We require our end-users
to provide an update on the employees’ information every month on the day specified on the payroll calendar using an agreed monthly
change form. Information to be updated includes the information of newly hired employees or terminated employees, change of bank account,
work location and salaries of the employees and other relevant information in relation to payroll such as attendance and leave record
every month. We will then calculate the monthly salaries and other pay items for the employees through our IT system.

Generation of payroll report and bank file

After updating the particulars
on the IT system, we will calculate the amount to be paid to each employee of our end-user through the system. The calculation includes
the amount of salary each employee is entitled to, the amounts of contributions to be paid for MPF in Hong Kong, social security, housing
provident funds and individual income tax in the PRC and any other deductions required to be made under the laws of the respective jurisdictions.
After processing the data and checking the data internally, the payroll report containing details of our end-user’s employees in
relation to their payroll will be sent to our channel customer and end-user for their approval.

Once the payroll report is
approved, our client account manager will generate a bank file from our IT system and check the information on the bank file, such as
the pay date, payment amount and employees’ information. The bank file will then be sent to our end-user if the end-user does not
require us to process payment on their behalf.

Invoice to customer

Upon receiving the confirmation
on the monthly payroll report from our channel