The Top Key Points which Create Global Payroll Compliance

Posted by Buus Tychsen on April 22nd, 2021

From the 2019 Global Payroll Complexity Index, data, particularly, the safe-guarding and security of information - is currently the primary issue for the market. As the report clarifies, “Payroll is the key to market success. It’s the value in payroll information which makes it incredibly high risk.” That payroll workers are, therefore, worried about safe-guarding this valuable asset is not shocking. A polling of payroll professionals discovered the following: On average, Human Resource and payroll departments use nearly 36 hours each payroll cycle on compliance-related activities which range from tracking regulatory proposals to originating and communicating new policies – enough employment for a dedicated full-time employee. Companies with less than five hundred employees average twenty-three hours each week on compliance issues, and those with 500-nine hundred ninetynine employees average 31 hours each period. That increases to 36 hours per week for organizations with 1,000-2,499 workers. What are the three main issues of concern? “The results of the Global Payroll Complexity Index confirm that in 2019, multinational companies are challenged by managing growing volumes of employee data, keeping to data privacy regulations, and remaining compliant in a world of unique employment and taxation compliance laws 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 employed in international payroll, the results of the date would come as no surprise. GDPR is a paradignm shift; the growing volume of data presents with it greater security risks, as well as the non-stop onslaught of additional labor laws group to offer payroll managers with a enormous task. Let us 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 how it is changing Europe’s information security laws is possibly one of the top important impacts in the payroll market in the recent past. The law determines not only what information can be held; but also, where, by whom, and duration. What is also hugely important for global operators is that GDPR applies not merely for companies and organizations within the EU, but also to businesses and organizations outside of the EU if they provide goods or services to consumers 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 on individuals residing in the EU are accountable and must be GDPR compliant. Companies that fail to comply with GDPR face reputational damage and fines. According to the recent report, data protection regulators have imposed EUR114 million in penalties since 2018. Data issues The unique and sensitive matter of employee data means that companies are under extreme pressure to make sure they don’t fall victim to hackers. Such a breach creates potential problems for workers, and it additionally places the company at risk of reputational damage and possible lawsuit. One of the recent examples of such an issue occurred during April when American education technology business Chegg experienced a data issue where criminals stole 700 records that contained both past and current employee information such as names and Social Security Numbers. Legal compliance Staying current with changing legislation is a great challenge faced by payroll managers. Once again, this is not at all surprising given the high occurrence of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we know that since European countries still top the list for most in-depth reporting, the growth markets of South America, Asia, and Africa mean countries in those regions are beginning to make additional changes to their regulations that will greatly affect the role of payroll. How may payroll vendor manage these challenges? A reply is to move to a unified global payroll service provider. While the many abilities of a single payroll platform extend past ensuring compliance, the fact is they can significantly minimize compliance concerns. GDPR The foundation of GDPR compliance is ensuring the protection of your information. Payroll should be able to address the following questions: Which data do you have? Where do you keep this data? Why are you keeping this information? How protected is it? When reviewing various payroll service providers, use the time to discuss each of these issues with them to ensure each has the capabilities to satisfy your information obligations. The Immedis Platform protects your information via several tasks including encryption and the capability to remove information from its subject so that the data is held separately providing an additional layer of security and privacy. Data breaches Securing your information is critical. However, a global payroll system that comes with an ISO level certification offers security. Especially, the ISO 27001 certificate as it is recognized as the international standard for information security management. Immedis is ISO certified, which means Immedis run regular internal audits and perform bi-annual outside audits to ensure conformance. The company additionally employ a rigorous control plan – every update on the Immedis Platform is user stamped. Legislation updates Remaining updated with payroll legislation can be a enormous job. The issues and financial consequences of failing to do so are also enormous. Deloitte highlights the success of a global service vendor: “A global service vendor creates a unique solution on the tax and social security compliance-related issues by providing payroll services for many countries across the planet.” An additional plus is receiving updated data on amendments – especially regarding local regulations – and synchronizing with several vendors is taken care of by a single vendor. Immedis has comprehensive global payroll expertise and offers continuing feedback on local regulatory issues and any impacts for workers.

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Buus Tychsen

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Buus Tychsen
Joined: April 21st, 2021
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