Notes

A Few Key Issues that Protect Global Payroll Compliance

Based on the 2019 Global Payroll Complexity Index, information, particularly, the protection and security of data - is currently the main concern for the industry. As local payroll , “Payroll is the key to business success. It is the premium in payroll data that makes it especially high risk.” That payroll managers are, therefore, concerned about securing this valuable resource is hardly shocking. A questioning of payroll professionals discovered the following:

On average, HR and payroll departments employ around 34 hours per payroll cycle on compliance-related iisues ranging from watching regulatory proposals to originating and discussing new policies – enough time for a dedicated full-time employee.
Group with less than five hundred employees average twenty-three hours per payroll cycle on compliance duties, while those with five hundred-999 employees average thirty-one hours each cycle. It increases to thirty-six hours per week for companies with 1,000-2,499 employees.

What are the 3 main areas of concern?

“The results of the Global Payroll Complexity Index find that in 2019, multinational organizations are challenged by managing increasing amounts of employee data, keeping to data privacy regulations, and staying compliant in a world of unique employment and taxation compliance rules 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 working in international payroll, the findings of the survey would appear as no surprise. GDPR is a game-changer; the increasing volume of information presents with it greater security issues, and the constant creation of new labor rules combine to challenge payroll professionals with a giant task.

Let’s examine each of these issues in a bit more detail and then see how payroll professionals are working hard to tackle every issue.
General Data Protection Regulation (GDPR)

GDPR and how it’s evolving Europe’s data protection laws may be arguably one of the most important impacts on the payroll industry in recent history. The regulation governs not just what data may be stored; but also, where, by whom, and for how long. What is also largely important for global companies is that GDPR applies not only to companies and organizations within Europe, but also to businesses and organizations outside of the EU if they offer goods or services to consumers in the EU or if they observe the actions of EU data subjects. All companies- regardless of where they are located- who process or hold individual data of individuals residing in the EU are accountable and must be GDPR compliant.

Organizations that neglect to comply with GDPR face reputational damage and fines. According to the recent report, data protection regulators have levied EUR114 million in penalties since May 2018.
Data issues

The unique and sensitive nature of employee data reveals that organizations are under significant pressure to make certain they do not fall victim to hackers. Such a issues creates possible problems for employees, and it additionally places the company at risk of reputational damage and legal action.
A recent example of such a violation occurred in April when American education tech company Chegg had a data issue where hackers stole 700 records containing both past and current employee data such as 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 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 that will greatly impact the role of payroll.

How may payroll best manage those challenges?

A reply is to move to a unified global payroll service provider. While the several capabilities of a single payroll platform extend past ensuring compliance, the truth is they can significantly minimize compliance concerns.
GDPR

The foundation of GDPR compliance is securing the protection of your data. Payroll must be able to answer the following questions:

Which data do you own?

Where do you keep this data?

Why are you holding onto this information?

How protected is it?

When reviewing different payroll service providers, use the time to discuss all of these issues with them to make sure each has the capabilities to satisfy your information responsibilities. The Immedis Platform protects your data through multiple measures which includes encryption and the ability to remove data from its subject so that the information is stored separately adding an additional level of security and privacy.

Data breaches

Securing your data is critical. But, a global payroll platform that provides an ISO quality certification provides security. In particular, the ISO 27001 certificate as it is recognized as the global standard for information security management. Immedis is ISO certified, which means the company perform frequent internal audits and complete biannual outside audits to verify conformance. The company additionally implement a strong control plan – each update on the Immedis Platform is user stamped.

Legislation updates

Staying current with payroll legislation can be a behemoth obstacle. The issues and monetary results of failing to do so are just as immense. Deloitte presents the advantages of a global service vendor: “A global service vendor offers a compelling solution for the tax and social security compliance-related issues by offering payroll services for most countries around the planet.” An additional plus is receiving updated data on changes – particularly about local regulations – and synchronizing with several vendors is managed with a single vendor. Immedis has thorough international payroll expertise and offers continuing updates on local legislative issues and their impacts for employees.

Website: https://immedis.com