The Top Key Points which Ensure Universal Payroll CompliancePosted by Miles Sauer on January 7th, 2021 From the 2019 Global Payroll Complexity Index, information, especially, the protection and security of information - is now the primary issue for the market. As the report clarifies, “Payroll is the key to market success. It is the value in payroll data which makes it incredibly high risk.” That payroll professionals are, therefore, concerned about safe-guarding this valuable asset is not shocking. A questioning of payroll professionals discovered the following: On average, HR and payroll departments employ nearly 35 hours each payroll cycle on compliance-related iisues ranging from watching regulatory proposals to creating and discussing new policies – enough employment for a dedicated full-time worker. Organizations with less than 500 workers average 23 hours per payroll cycle on compliance duties, while those with five hundred-999 workers average thirty-one hours per cycle. It increases to thirty-six hours per week for companies with 1,000-2,499 workers. Which are the 3 primary issues of worry? “The findings of the Global Payroll Complexity Index confirm that in 2019, multinational organizations continue to be challenged by managing increasing volumes of employee data, keeping to data privacy regulations, and staying compliant in a world of robust employment and taxation compliance rules 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 global payroll, the results of the date may appear as no surprise. GDPR is a game-changer; the increasing amount of information brings with it greater security risks, and the non-stop changing of new labor regulations aggregate to offer payroll managers with a giant job. Let us look at each of these areas in a little more detail and then see how payroll professionals are working hard to resolve each concern. General Data Protection Regulation (GDPR) GDPR and how it is changing Europe’s information security laws may be arguably one of the most significant results in the payroll industry in recent memory. The law governs not only what data can be held; but also, location, by whom, and duration. What is additionally largely significant 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 offer goods or services to people in the EU or if they observe the behavior of EU data subjects. Every company- regardless of where they are domiciled- who process or store personal data of individuals residing in the EU are accountable and must be GDPR compliant. Companies that neglect to comply with GDPR risk reputational injury and fines. Based on the recent report, data protection regulators have imposed EUR114 million in penalties since May 2018. international payroll and delicate nature of employee data reveals that organizations are in extreme pressure to ensure they don’t fall victim to hackers. That type of issues causes possible problems for employees, and it also places the company at risk of reputational injury and legal action. A recent example of such a violation occurred in April when American education technology company Chegg had a data breach where criminals stole 700 records that contained both previous and present employee information like names and Social Security Numbers. Legislation compliance Keeping up to date with changing legislation is one of the greatest challenges faced by payroll professionals. Again, this is hardly surprising given the high frequency of changes in the laws both local and global. From the 2019 Global Payroll Complexity Report, we know that since European countries still top the list for most involved reporting, the growth economies in South America, Asia, and Africa mean countries in those regions are beginning to make more changes to their regulations which will greatly impact the role of payroll. How may payroll best handle these issues? A response is to head to a unified global payroll service provider. While the several capabilities of a single payroll platform reach past obtaining compliance, the fact is they can significantly mitigate compliance concerns. GDPR The foundation of GDPR compliance is ensuring the protection of your data. Payroll must be able to answer the following questions: Which data do you hold? Where do you keep this information? Why are you holding onto this data? How safe is it? When reviewing various payroll service providers, take the time to discuss all of these questions with them to ensure each has the abilities to satisfy your information obligations. The Immedis Platform protects your data via multiple tasks which includes encryption and the ability to remove information from its subject so that the information is held individually adding an additional level of security and privacy. Data breaches Securing your information is important. But, a global payroll platform that comes with an ISO level certification provides security. In particular, an ISO 27001 certificate as it is acknowledged as the international standard for data security management. Immedis are ISO certified, which means Immedis run frequent internal audits and perform biannual outside audits to ensure compliance. They also employ a strong control scheme – every input on the Immedis Platform is user dated. Legislation updates Remaining updated with payroll regulations is a behemoth task. The risks and monetary results of failing to do so are also enormous. Deloitte presents the advantages of a global service provider: “An international service vendor offers a unique solution for the tax and social security compliance-related problems by offering payroll services for most countries around the planet.” An additional benefit is getting updated data on amendments – particularly about local regulations – and connecting with several vendors is managed by a single vendor. Immedis has extensive international payroll knowledge and provides continuing updates for local legislative issues and their impacts on employees.Like it? Share it! More by this author |