The Top Key Points that Create Universal Payroll CompliancePosted by Bright Kumar on April 27th, 2021 As seen from the 2019 Global Payroll Complexity Index, information, especially, the safe-guarding and security of data - is currently the main concern for the industry. As the report states, “Payroll is the key to business success. It is the value in payroll information which makes it very high risk.” That payroll managers are, therefore, concerned about safe-guarding this valuable resource is hardly surprising. A questioning of payroll professionals discovered the following: On average, Human Resource and payroll departments spend nearly thirty-four hours each payroll cycle on compliance-related activities ranging from tracking regulatory proposals to creating and communicating new policies – enough work for a dedicated full-time worker. Group with less than 500 employees average 23 hours per week on compliance duties, while those with 500-nine hundred ninetynine workers average thirty-one hours per period. It increases to thirty-six hours per week for organizations with 1,000-2,499 employees. Which are the three primary areas of concern? “The findings of the Global Payroll Complexity Index find that in 2019, global companies are challenged by managing increasing amounts of employee data, adhering to data privacy rules, and remaining compliant in a world of unique employment and taxation compliance regulations around 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 international payroll, the results of the survey may come as no surprise. GDPR is a paradignm shift; the growing volume of data brings with it more security risks, and the constant changing of additional labor rules combine to present payroll managers with a giant job. Let’s examine each of these issues in a little more detail and then see how payroll professionals are trying hard to conquer each concern. General Data Protection Regulation (GDPR) GDPR and how it’s evolving Europe’s data protection laws is arguably one of the most significant impacts in the payroll market in the recent past. The regulation determines not just what information can be stored; but also, location, by whom, and for how long. What is additionally largely important 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 people in the EU or if they monitor the behavior of EU data subjects. Every company- regardless of where they are domiciled- who process or store individual data on individuals residing in the EU are accountable and should be GDPR compliant. Organizations that fail to comply with GDPR risk reputational damage and fines. Based on the recent report, data protection regulators have imposed EUR114 million in fines since 2018. Information breaches The unique and sensitive matter of employee data means that companies are in significant pressure to make certain they do not become victim to criminals. Such a issues causes potential problems for employees, and it additionally puts the company at risk of reputational injury and legal action. A recent example of such an issue happened during April when American education technology company Chegg experienced a data breach where hackers stole 700 records containing both past and present employee information such as 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 not surprising provided the high frequency of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we know that while EU countries still top the list for most involved reporting, the growing markets of South America, Asia, and Africa mean countries in these areas are beginning to create additional changes to their regulations that will greatly affect the task of payroll. How may payroll better manage those challenges? One response is to head to a unified international payroll provider. While the several abilities of a single payroll system extend beyond ensuring compliance, the fact is they can significantly mitigate compliance concerns. GDPR The foundation of GDPR compliance is securing the protection of your information. Payroll must be able to address the following questions: Which information do you have? How do you manage this information? Why are you holding onto this information? How secure is it? While reviewing different payroll service providers, take the time to explore all of these questions with them to ensure each has the abilities to meet your data obligations. The Immedis Platform safe-guards your information by multiple tasks including encryption and the capability to separate information from its subject so that the data is kept separately providing an additional layer of security and protection. Data breaches Protecting your data is critical. But, a global payroll platform that comes with an ISO quality certification provides security. Specifically, a ISO 27001 certificate since it is recognized as the global standard for data security management. Immedis are ISO certified, which means Immedis perform monthly internal audits and perform biannual outside audits to ensure compliance. They also implement a rigorous control groundwork – every update on the Immedis Platform is user dated. Legislation updates Remaining updated on payroll legislation is a enormous task. The issues and monetary consequences of failing to do so are just as enormous. Deloitte shows the success of a global service provider: “An international service vendor offers a compelling solution on the tax and social security compliance-related tasks by providing payroll services for most countries across the globe.” An additional plus is getting updated information on amendments – particularly about local laws – as well as synchronizing with several vendors is managed by a single service provider. Immedis has comprehensive global payroll expertise and provides continuing updates on local legislative issues and their impacts on the workforce.Like it? Share it! More by this author |