The Main Key Issues that Protect Universal Payroll CompliancePosted by Fournier Hartley on February 4th, 2021 Based on the 2019 Global Payroll Complexity Index, information, particularly, the safe-guarding and security of information - is now the primary issue for the industry. As the index notes, “Payroll is the key to business success. It is the value in payroll data which makes it incredibly high risk.” That payroll managers are, therefore, worried about safe-guarding this valuable resource is not surprising. A survey of payroll executives discovered that: On average, HR and payroll departments employ nearly 34 hours per week on compliance-related iisues ranging from watching regulatory proposals to originating and communicating new policies – enough employment for a dedicated full-time worker. Group with fewer than five hundred workers average twenty-three hours each period on compliance duties, and those with 500-999 workers average thirty-one hours each cycle. That goes up to 36 hours per week for organizations with 1,000-2,499 workers. Which are the 3 primary issues of worry? “The results of the Global Payroll Complexity Index confirm that in 2019, multinational companies are challenged by managing growing amounts of employee information, adhering to data privacy rules, and remaining compliant in a world of robust employment and taxation compliance regulations across the globe,” explained Mary Holland Global Director of Strategy, Development and Training at the Global Payroll Management Institute (GPMI) and the American Payroll Association (APA). To anyone employed in international payroll, the results of the date may come as no surprise. GDPR is a paradignm shift; the increasing volume of information brings with it more security risks, as well as the constant changing of additional labor rules aggregate to present payroll professionals with a giant job. Let’s examine each of these issues in a little more detail and then examine how payroll professionals are trying hard to conquer every concern. General Data Protection Regulation (GDPR) GDPR and why it’s evolving Europe’s information protection laws is arguably one of the top important impacts in the payroll market in the recent past. The law determines not only what data may be stored; but also, where, by whom, and for how long. What is also hugely important for global operators is that GDPR applies not only to businesses and organizations within the EU, but also to businesses and organizations outside of the EU if they provide goods or services to individuals in the EU or if they monitor the actions of EU data subjects. Every company- regardless of where they are located- who process or hold individual data of individuals residing in the EU are accountable and should be GDPR compliant. Organizations that fail to comply with GDPR face reputational damage and fines. According to the recent report, data protection regulators have levied EUR114 million in penalties since May 2018. Data breaches The unique and delicate nature of worker data means that organizations are under significant pressure to make certain they don’t become victim to hackers. That type of breach creates potential problems for workers, and it additionally puts the company at risk of reputational injury and legal action. A recent example of such an issue occurred during April when American education technology business Chegg experienced a data issue where hackers stole 700 records that contained both previous and current employee data like names and Social Security Numbers. Legislation compliance Staying up to date with changing legislation is one of the greatest challenges faced by payroll professionals. Once again, this is not surprising given the high occurrence of changes in the laws both local and global. From the 2019 Global Payroll Complexity Report, we know that while European countries still top the list for most involved reporting, the growing markets of South America, Asia, and Africa mean countries in these regions are starting to make more changes to their regulations that will greatly impact the role of payroll. How can payroll better handle these challenges? A response is to move to a unified international payroll provider. While the many abilities of a single payroll system reach beyond obtaining compliance, the fact is they can significantly mitigate compliance concerns. GDPR The foundation of GDPR compliance is securing the protection of your data. Payroll must be able to address the following queries: Which information do you hold? Where do you manage this data? Why are you keeping this data? How protected is it? When reviewing different payroll service providers, take the time to explore each of these issues with them to make sure each has the abilities to meet your data obligations. The Immedis Platform safe-guards your information from multiple tasks which includes encryption and the capability to separate information from its subject so that the information is held individually providing another layer of security and protection. Data breaches Securing your data is critical. However, a global payroll system that provides an ISO level certification offers security. Especially, an ISO 27001 certificate as it is recognized as the global standard for information security management. Immedis are ISO certified, which means Immedis run frequent internal audits and complete twice yearly outside audits to verify compliance. They additionally implement a strong control plan – each update on the Immedis Platform is user stamped. Regulatory updates Staying current on payroll regulations can be a behemoth obstacle. The risks and monetary consequences of failure to do so are equally enormous. payroll vendor shows the success of a global service provider: “A global service provider offers a unique solution on the tax and social security compliance-related issues by offering payroll services for many countries across the globe.” An additional benefit is getting updated information on amendments – particularly regarding local laws – as well as connecting with multiple vendors is managed with a single service provider. Immedis has thorough global payroll knowledge and provides ongoing feedback on local regulatory changes and the impacts on the workforce.Like it? Share it! More by this author |