Payroll
Payroll can be a challenging affair at the best of times, but global payroll comes with a whole host of extra difficulties. In this blog, we’re taking a look at global payroll challenges, and most importantly, how you can solve them.
Global Payroll Challenges
Paying employees accurately and on time
No matter where they are based, your employees expect to be paid accurately and on time. Failure to do so can result in disgruntled employees and even cause employees to leave. However, running timely payroll can be a challenge, especially when you have different time zones, payroll regulations and a multitude of currencies to process. Likewise, processing the appropriate tax, social security can be a time-consuming process that is laden with risk if done incorrectly. Not only does inaccurate payroll negatively impact your employees but it can also stifle your expansion, as without the ability to pay employees accurately and on time, you’re going to struggle to dominate in those new markets.
Running compliant payroll
Running compliant payroll is always challenging thanks to employment and tax regulations. With the addition of global regulations that vary from country to country – and sometimes even city to city – global payroll is even more complex and rampant with compliance risks. And, if you do manage to master the abundance of legislation in each country and comply with it, bear in mind that these regulations are subject to change on a regular basis, throwing your payroll processes, and compliance, into disarray.
Information management
Ah admin, one of the most time-consuming aspects of business at the best of times; now include everything from employee data to employment legislation and your admin has just gone through the roof. And, if your employee details change you need to be able to effectively communicate this change to the relevant departments or systems without disrupting that period’s payroll or your reporting.
Data protection and payroll
Just as payroll and employment regulations vary from country to country, as do data protection laws. Europe is governed by GDPR, Singapore by The Personal Data Protection Act (PDPA), Australia by the federal Privacy Act 1988 and the USA by privacy laws that vary per state, just to name but a few. When running global payroll you must comply with data protection laws in your employee’s country as well as your own, leading to a multitude of complex regulations to navigate. The consequences of non-compliance can again be incredibly costly, while drawing up the relevant data protection agreements and jumping through data protection hurdles can be time consuming and costly in itself.
Managing costs and resources
All of the above global payroll challenges result in perhaps the biggest challenge for expanding businesses yet: the requirement of extra costs and resources. Running global payroll is not something that can be done with existing resources, budget or staff. It requires a large-scale team with ample resources who can manage and run payroll accurately, compliantly and efficiently; this is no small feat, or cost, for an expanding company. The alternative? Bundling international payroll onto your existing HR and payroll team who will struggle with the enormity of the task and potentially run into errors with international laws or have to neglect other duties to facilitate international payroll.
How to solve global payroll challenges?
Employing an inhouse international payroll team is not feasible for the majority of businesses. Instead, working with a global payroll partner or PEO, is often the most cost-effective, efficient and compliant way to overcome international payroll challenges. At Leap29 we are well equipped to run your international payroll, handling immigration, tax and insurance compliance. Thanks to the latest technology, we can process multi-currency payments promptly and accurately while our online timesheet management system monitors, registers and records all hours and expenses before issuing payslips, keeping your admin and cost to a minimum without compromising on data management and protection. Perhaps most importantly, our payroll services take full liability from your shoulders, meaning you can focus on your expansion while we manage your payroll and the challenges that come with it.
If you want to find out how our payroll solutions can support your recruitment process and help resolve your international challenges, simply contact one of our experts today on 01625 537 555 or email [email protected].
