A Few Key Areas which Protect Global Payroll CompliancePosted by Fournier Hartley on February 4th, 2021 From the 2019 Global Payroll Complexity Index, data, especially, the safe-guarding and security of data - is now the top issue for the market. As the report notes, “Payroll is the key to business success. It is the value in payroll data that makes it very high risk.” That payroll executives are, therefore, concerned about protecting this valuable asset is hardly surprising. A questioning of payroll executives found that: On average, Human Resource and payroll departments employ around 36 hours each week on compliance-related iisues ranging from observing regulatory proposals to creating and communicating new policies – enough time for a dedicated full-time worker. Companies with less than five hundred workers average twenty-three hours per week on compliance issues, while those with 500-nine hundred ninetynine employees average thirty-one hours per cycle. That increases to thirty-six hours per cycle for companies with 1,000-2,499 employees. Which are the 3 primary issues of worry? “The findings of the Global Payroll Complexity Index find that in 2019, global organizations continue to be challenged by managing increasing volumes of employee data, adhering to data privacy regulations, and staying compliant in a world of unique employment and taxation compliance laws around the planet,” 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 findings of the survey would appear as no surprise. GDPR is a game-changer; the growing volume of data brings with it more security risks, as well as the non-stop changing of additional labor rules group to challenge payroll professionals with a herculean task. Let us examine each of these areas in a bit more detail and then see how payroll professionals are working intensely to resolve every issue. General Data Protection Regulation (GDPR) GDPR and why it’s changing Europe’s data security laws may be possibly one of the top important impacts on the payroll industry in the recent past. The regulation determines not only what information can be held; but also, location, by whom, and for how long. What is additionally largely significant for global operators is that GDPR applies not only to businesses and organizations within the EU, but also to companies and organizations outside of the EU if they provide goods or services to consumers in the EU or if they observe 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. Companies that fail to comply with GDPR risk reputational damage and fines. According to the recent report, data protection regulators have levied EUR114 million in fines since May 2018. Information breaches The unique and sensitive nature of worker information means that organizations are in significant pressure to make certain they don’t fall victim to criminals. That type of breach creates possible problems for employees, and it also places the organization at risk of reputational damage and legal action. One of the recent examples of such an issue happened during April when American education technology company Chegg had a data breach where hackers stole 700 records that contained both past and current employee information such as names and Social Security Numbers. Legislation compliance Staying up to date with changing legislation is one of the greatest challenges faced by payroll managers. 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 realize that while EU countries still top the list for most involved reporting, the growing economies in South America, Asia, and Africa mean countries in these regions are starting to make additional changes to their regulations that will further impact the role of payroll. How may payroll better handle those issues? One reply is to head to a unified global payroll service provider. While the many capabilities of a single payroll platform extend beyond ensuring compliance, the truth is they can significantly mitigate compliance concerns. GDPR The cornerstone of GDPR compliance is ensuring the protection of your data. Payroll must be able to address the following questions: What data do you hold? Where do you manage this data? Why are you keeping this data? How protected is it? When analyzing various payroll vendors, use the time to discuss each of these questions with them to make certain each has the abilities to satisfy your data responsibilities. The Immedis Platform safe-guards your information via several measures including encryption and the ability to separate data from its subject so that the information is kept separately adding an additional level of security and protection. Data breaches Protecting your data is critical. However, a global payroll system that comes with an ISO quality certification offers security. In particular, an ISO 27001 certificate since it is acknowledged as the international standard for information security management. Immedis is ISO certified, which means the company run regular internal audits and complete twice yearly external audits to ensure compliance. The company additionally employ a strong control groundwork – every action on the Immedis Platform is user timed. Regulatory updates Remaining current on payroll legislation can be a giant task. The issues and monetary results of failure to do so are equally immense. global payroll vendor shows the advantages of a global service vendor: “A global service provider offers a unique solution for the tax and social security compliance-related issues by providing payroll services for most countries around the globe.” An additional benefit is receiving updated information on amendments – particularly pertainining to local laws – and synchronizing with multiple vendors is managed with a single service provider. Immedis has thorough global payroll expertise and offers continuing updates on local legislative issues and their impacts for workers.Like it? Share it! More by this author |