The Primary Key Issues which Ensure Global Payroll CompliancePosted by Philipsen Bray on January 26th, 2021 Based on the 2019 Global Payroll Complexity Index, information, particularly, the safe-guarding and security of information - is currently the top concern for the market. As the index clarifies, “Payroll holds the key to market success. It is the premium in payroll information that makes it especially high risk.” That payroll workers are, therefore, concerned about protecting this valuable asset is hardly shocking. A questioning of payroll professionals discovered the following: On average, Human Resource and payroll departments spend approximately 35 hours per week on compliance-related iisues which range from observing regulatory proposals to creating and discussing new policies – enough employment for a dedicated full-time worker. Group with fewer than five hundred workers average twenty-three hours each payroll cycle on compliance duties, while those with five hundred-999 workers average thirty-one hours each week. That increases to 36 hours per cycle for organizations with 1,000-2,499 workers. What are the 3 main issues of concern? “The results of the Global Payroll Complexity Index find that in 2019, multinational companies are challenged by managing increasing volumes of employee data, adhering to data privacy rules, and staying compliant in a world of robust 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 working in global payroll, the findings of the date may come as no surprise. GDPR is a paradignm shift; the increasing volume of data presents with it greater security issues, and the non-stop onslaught of new labor laws aggregate to challenge payroll professionals with a giant task. Today we will examine each of these issues in a little more detail and then examine how payroll professionals are trying hard to resolve each issue. General Data Protection Regulation (GDPR) GDPR and why it is changing Europe’s information protection laws might be possibly one of the most significant results in the payroll market in the recent past. The regulation determines not only what information can be stored; but also, where, by whom, and for how long. What is additionally hugely significant for global companies 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 people in the EU or if they monitor the actions of EU data subjects. All companies- regardless of where they are located- who process or hold personal data of individuals residing in the EU are accountable and should be GDPR compliant. Organizations that fail to comply with GDPR risk reputational injury and fines. Based on the recent report, data protection regulators have levied EUR114 million in fines since May 2018. Data issues The unique and delicate matter of employee information means that organizations are under extreme pressure to ensure they don’t fall victim to hackers. Such a issues creates potential problems for workers, and it also places the organization at risk of reputational injury and legal action. One of the recent examples of such an issue occurred in April when American education technology company Chegg experienced a data breach where hackers stole 700 records that contained both previous and present employee data like names and Social Security Numbers. Legislation compliance Keeping current with changing legislation is one of the greatest challenges faced by payroll managers. Once again, this is not at all surprising given the high frequency of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we know that since EU countries still top the list for most in-depth reporting, the growth markets in South America, Asia, and Africa mean countries in those regions are beginning to create more changes to their laws that will greatly affect the task of payroll. How may payroll best manage those issues? One reply is to head to a unified international payroll service provider. While the many capabilities of a single payroll platform reach beyond ensuring compliance, the truth is they can significantly alleviate compliance concerns. GDPR The foundation of GDPR compliance is ensuring the protection of your information. Payroll must be able to answer the following questions: Which data do you own? Where do you manage this data? Why are you keeping this information? How protected is it? While analyzing various payroll service providers, use the time to discuss all of these questions with them to make certain each has the capabilities to satisfy your data responsibilities. The Immedis Platform protects your information through multiple tasks which includes encryption and the ability to isolate data from its subject so that the information is held individually adding another layer of security and privacy. Information breaches Securing your data is critical. But, a global payroll platform that comes with an ISO level certification offers security. Especially, a ISO 27001 certificate as it is acknowledged as the global standard for data security management. Immedis are ISO certified, which means they perform monthly internal audits and complete twice yearly external audits to verify conformance. The company also employ a rigorous control groundwork – every input on the Immedis Platform is user stamped. Legislation updates Remaining current with payroll regulations is a enormous job. The issues and monetary consequences of failure to do so are equally immense. Deloitte highlights the success of a global service vendor: “A global service provider offers a compelling solution for the tax and social security compliance-related tasks by offering payroll services for many countries across the globe.” An additional plus is receiving updated data on amendments – especially regarding local regulations – and synchronizing with multiple vendors is managed with a single vendor. Immedis has extensive global payroll knowledge and offers ongoing updates on local regulatory issues and the impacts for employees.Like it? Share it! More by this author |