Notes

The Top Key Points which Ensure Universal Payroll Compliance

Based on the 2019 Global Payroll Complexity Index, data, especially, the safe-guarding and security of information - is now the main concern for the market. As the index clarifies, “Payroll is the key to market success. It’s the value in payroll data that makes it especially high risk.” That payroll professionals are, therefore, concerned about safe-guarding this valuable resource is not shocking. A polling of payroll professionals discovered that:

On average, HR and payroll departments use nearly thirty-four hours per payroll cycle on compliance-related activities ranging from tracking regulatory proposals to creating and discussing new policies – enough employment for a dedicated full-time employee.
Group with less than 500 workers average 23 hours per period on compliance issues, and those with five hundred-999 employees average thirty-one hours per week. It goes up to thirty-six hours per cycle for organizations with 1,000-2,499 workers.

Which are the 3 main issues of worry?

“The findings of the Global Payroll Complexity Index find that in 2019, multinational companies continue to be challenged by managing growing amounts of employee data, keeping to data privacy rules, and remaining compliant in a world of unique employment and taxation compliance laws across 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).

For anyone employed in international payroll, the results of the date would come as no surprise. GDPR is a paradignm shift; the increasing amount of data brings with it greater security risks, as well as the non-stop changing of additional labor regulations aggregate to offer payroll professionals with a giant job.

Today we will look at each of these issues in a little more detail and then examine how payroll professionals are trying hard to tackle every issue.
General Data Protection Regulation (GDPR)

GDPR and why it’s evolving Europe’s information security laws is possibly one of the most important impacts in the payroll market in recent memory. The regulation determines not only what information can be held; but also, where, by whom, and for how long. What is also hugely important for global operators is that GDPR applies not merely for businesses and organizations within the EU, but also to companies and organizations outside of the EU if they offer goods or services to people in the EU or if they observe the behavior of EU data subjects. Every company- regardless of where they are domiciled- who process or store individual data of individuals residing in the EU are accountable and must be GDPR compliant.

Companies that neglect to comply with GDPR risk reputational damage and fines. According to the recent report, data protection regulators have imposed EUR114 million in penalties since 2018.
Data breaches

The unique and delicate nature of worker data reveals that organizations are under extreme pressure to make sure they do not fall victim to criminals. That type of issues causes possible problems for workers, and it additionally places the company at risk of reputational injury and possible lawsuit.
One of the recent examples of such an issue occurred in April when American education tech business Chegg had a data breach where hackers stole 700 records that contained both past and current employee data like names and Social Security Numbers.

Legislation compliance

Staying current with changing legislation is a great challenge faced by payroll professionals. Once again, this is not surprising given the high frequency of changes in the laws both local and global. From the 2019 Global Payroll Complexity Report, we realize that while European countries still top the list for most in-depth reporting, the growing markets of South America, Asia, and Africa mean countries in these regions are starting to make more changes to their laws which will greatly affect the role of payroll.

How may payroll best handle these issues?

A response is to head to a unified global payroll service provider. While the several abilities of a single payroll system extend past ensuring compliance, the truth is they can significantly alleviate compliance concerns.
GDPR

The cornerstone of GDPR compliance is obtaining the protection of your information. Payroll must be able to address the following queries:

Which data do you have?

How do you manage this information?

Why are you holding onto this information?

How protected is it?

When reviewing different payroll vendors, take the time to discuss each of these issues with them to make sure each has the capabilities to meet your data obligations. The Immedis Platform safe-guards your information through several measures including encryption and the capability to separate information from its subject so that the information is stored separately providing an additional layer of security and protection.

Data breaches

Securing your data is critical. However, a global payroll platform that provides an ISO quality certification offers security. Especially, the ISO 27001 certificate as it is recognized as the global standard for information security management. Immedis is ISO certified, which means they run monthly internal audits and perform twice yearly external audits to verify conformance. They additionally employ a strong control plan – each input on the Immedis Platform is user timed.

Legislation updates

Remaining updated on payroll regulations can be a over-whelming task. The issues and monetary results of failing to do so are just as enormous. Deloitte presents the success of a global service provider: “A global service provider offers a unique solution on the tax and social security compliance-related problems by offering payroll services for most countries around the globe.” An additional plus is getting updated data on amendments – particularly about local laws – as well as synchronizing with several vendors is managed by a single vendor. Immedis has comprehensive international payroll knowledge and provides ongoing feedback for local legislative issues and any impacts on employees.

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