A Few Key Points which Ensure Universal Payroll CompliancePosted by Borch Munck on February 17th, 2021 Based on the 2019 Global Payroll Complexity Index, information, particularly, the safe-guarding and security of data - is now the main issue for the market. As the report notes, “Payroll holds the key to business success. It is the value in payroll information which makes it very high risk.” That payroll managers are, therefore, worried about safe-guarding this valuable asset is hardly shocking. A questioning of payroll executives discovered the following: On average, Human Resource and payroll departments use around thirty-five hours per payroll cycle on compliance-related iisues ranging from mapping regulatory proposals to originating and discussing new policies – enough employment for a dedicated full-time worker. Organizations with less than 500 employees average 23 hours each period on compliance issues, while those with five hundred-nine hundred ninetynine employees average 31 hours each cycle. That goes up to thirty-six hours per week for companies with 1,000-2,499 workers. What are the 3 main issues of concern? “The findings of the Global Payroll Complexity Index confirm that in 2019, global organizations continue to be challenged by managing increasing amounts of employee information, adhering to data privacy rules, and remaining compliant in a world of unique employment and taxation compliance rules across the globe,” stated 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 global payroll, the findings of the study will appear as no surprise. GDPR is a paradignm shift; the growing volume of information brings with it more security issues, as well as the non-stop changing of additional labor regulations group to challenge payroll managers with a herculean job. Today we will look at each of these issues in a little more detail and then examine how payroll professionals are working hard to resolve every concern. General Data Protection Regulation (GDPR) GDPR and why it’s evolving Europe’s data protection laws may be arguably one of the most significant results in the payroll market in the recent past. The law governs not only what information can be stored; but also, where, by whom, and duration. What is also hugely significant for global operators is that GDPR applies not merely for companies and organizations within the EU, but also to companies and organizations outside of the EU if they provide goods or services to individuals in the EU or if they observe the actions of EU data subjects. Every company- regardless of where they are domiciled- who process or store individual data of individuals residing in the EU are accountable and should be GDPR compliant. Organizations that fail to comply with GDPR face reputational injury and fines. According to the recent report, data protection regulators have levied EUR114 million in fines since 2018. Data breaches The unique and delicate matter of employee information reveals that companies are in extreme pressure to make sure they do not become victim to criminals. Such a issues causes potential problems for workers, and it also places the organization at risk of reputational injury and legal action. A recent example of such a violation happened in April when American education tech company Chegg had a data breach where hackers stole 700 records that contained both past and current employee information like names and Social Security Numbers. Legislation compliance Staying current with changing legislation is one of the greatest challenges faced by payroll managers. Again, this is hardly surprising provided the high frequency of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we know that while European countries still top the list for most involved reporting, the growing economies of South America, Asia, and Africa mean countries in those areas are starting to make additional changes to their laws which will greatly affect the task of payroll. How can payroll better handle those issues? One reply is to move to a unified international payroll provider. While the several abilities of a single payroll system extend past ensuring compliance, the fact is they can significantly alleviate compliance concerns. GDPR The cornerstone of GDPR compliance is ensuring the protection of your information. Payroll should be able to address the following questions: Which information do you own? Where do you manage this information? Why are you keeping this information? How protected is it? While analyzing various payroll service providers, use the time to explore each of these issues with them to make sure each has the abilities to meet your information obligations. The Immedis Platform safe-guards your data by multiple tasks including encryption and the ability to isolate information from its subject so that the data is stored individually adding an additional layer of security and protection. Data breaches Protecting your data is critical. However, a global payroll platform that comes with an ISO quality certification provides security. Especially, an ISO 27001 certificate as it is recognized as the global standard for information security management. Immedis are ISO certified, which means they perform frequent internal audits and perform biannual outside audits to ensure conformance. The company also employ a rigorous control framework – each action on the Immedis Platform is user dated. Regulatory updates Remaining updated on payroll regulations is a enormous job. The risks and financial results of failing to do so are equally enormous. Deloitte presents the success of a global service provider: “An international service vendor offers a unique solution on the tax and social security compliance-related issues by offering payroll services for most countries across the globe.” An additional benefit is receiving updated data on amendments – especially about local regulations – and synchronizing with several vendors is managed by a single service provider. Immedis has thorough global payroll expertise and provides continuing updates for local legislative issues and the impacts for the workforce.Like it? Share it! More by this author |