The Top Key Points which Create Global Payroll CompliancePosted by Shepard Damm on February 22nd, 2021 From the 2019 Global Payroll Complexity Index, data, particularly, the safe-guarding and security of data - is now the top issue for the industry. As the index states, “Payroll is the key to market success. It is the premium in payroll data that makes it very high risk.” That payroll professionals are, therefore, concerned about securing this valuable asset is not surprising. A polling of payroll executives found the following: On average, HR and payroll departments spend approximately 35 hours per payroll cycle on compliance-related activities ranging from mapping regulatory proposals to originating and communicating new policies – enough work for a dedicated full-time employee. Companies with less than five hundred workers average 23 hours each period on compliance duties, and those with five hundred-nine hundred ninetynine workers average 31 hours each week. That goes up to 36 hours per week for organizations with 1,000-2,499 workers. What are the 3 main issues of concern? “The results of the Global Payroll Complexity Index confirm that in 2019, global companies are challenged by managing growing volumes of employee information, keeping to data privacy rules, and staying compliant in a world of unique employment and taxation compliance regulations around 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 survey may appear as no surprise. GDPR is a paradignm shift; the growing volume of information presents with it greater security risks, as well as the constant changing of additional labor rules group to present payroll professionals with a herculean task. Today we will look at each of these issues in a bit more detail and then see how payroll professionals are working intensely to conquer every issue. General Data Protection Regulation (GDPR) GDPR and why it’s changing Europe’s data protection laws is possibly one of the top important impacts on the payroll industry in recent history. The law governs not just what data may be stored; but also, where, by whom, and for how long. What is additionally hugely important for global operators is that GDPR applies not only to companies and organizations within Europe, but also to companies and organizations outside of the EU if they offer goods or services to individuals in the EU or if they observe the actions of EU data subjects. All companies- regardless of where they are domiciled- who process or hold personal data on individuals residing in the EU are accountable and should be GDPR compliant. Companies that neglect to comply with GDPR risk reputational injury and fines. According to the recent report, data protection regulators have levied EUR114 million in fines since May 2018. Information breaches The unique and delicate matter of employee data reveals that organizations are under significant pressure to ensure they do not become victim to criminals. Such a issues creates possible problems for workers, and it additionally puts the company at risk of reputational damage and legal action. A recent example of such an issue occurred during April when American education technology company Chegg had a data breach where hackers stole 700 records that contained both past and present employee data like names and Social Security Numbers. Legal compliance Staying up to date with changing legislation is a great challenge faced by payroll professionals. Again, this is hardly surprising provided the high occurrence of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we realize that while European countries still top the list for most in-depth reporting, the growth economies of South America, Asia, and Africa mean countries in those areas are starting to create more changes to their laws which will greatly impact the task of payroll. How can payroll better manage these issues? A response is to move to a unified international payroll service provider. While the several abilities of a single payroll platform reach past ensuring compliance, the fact is they can significantly mitigate compliance concerns. GDPR The cornerstone of GDPR compliance is obtaining the protection of your data. Payroll must be able to address the following queries: What information do you own? How do you keep this data? Why are you keeping this data? How secure is it? When reviewing different payroll service providers, take the time to explore all of these issues with them to make sure each has the capabilities to satisfy your data obligations. The Immedis Platform protects your data through multiple measures which includes encryption and the capability to remove data from its subject so that the data is stored individually adding another level of security and protection. Information breaches Securing your data is critical. However, a global payroll system that comes with an ISO level certification offers security. Especially, an ISO 27001 certificate as it is acknowledged as the global standard for information security management. Immedis are ISO certified, which means Immedis perform monthly internal audits and complete twice yearly outside audits to ensure conformance. The company additionally employ a rigorous control plan – each update on the Immedis Platform is user stamped. Legislation updates Staying current on payroll regulations can be a over-whelming obstacle. The risks and financial consequences of failure to do so are also enormous. Deloitte highlights the advantages of a global service provider: “An international service vendor offers a compelling solution on the tax and social security compliance-related tasks by offering payroll services for most countries across the globe.” An additional benefit is getting updated data on changes – especially about local laws – and connecting with several vendors is managed with a single service provider. Immedis has thorough global payroll expertise and offers continuing updates for local regulatory issues and the impacts on employees.Like it? Share it! More by this author |