Is your Global Payroll System Really Global?
As a Global Payroll or Finance professional you’re managing multiple payroll team members in different countries and regions around the world. Depending on the countries based in, you an your team may have to deal with different requirements for payments, benefits and the locations local legislative, tax and compliance requirements. To add to this, there may be cultural nuances associated with how each country prefer to manage their payroll process.
The Ideal Global Payroll Situation
In an ideal situation, a global payroll system is pre-planned within a structured and clear business plan. The business plan is one that has a clear indication of the countries the business is expanding to and what the in-country requirements are. The business plan needs to be a structured document with some flexibility and movement for any unseen changes or expansion that might take place.
This structured plan then allows for the facilitation of organisational planning and feeds into the overall corporate structure, HR organisation and a plan for business needs in terms of payroll, tax and compliance.
The Real Global Payroll Situation
The real situation in global payroll is that businesses generally have a short and limited time-frame when it comes to expanding into new regions or countries. In some cases, this might be due to a shock in the business, costs needed to be cut, and the business needed to move operations from one country to the next with limited notice. In others, it may be due to unforeseen expansion within the business.
In rapid expansion or country to country moves, it’s not unheard of for organisations to employ in-country payroll providers, in the countries expanding to, to work alongside the HR, payroll and finance teams to complete the payroll tasks and ensure compliance with local tax and legislation.
Through an organisation’s rapid international growth and a growing number of local payroll providers to manage, the task can cause complications for the in-house departments.
The department begins to receive an influx of information and status updates from each local payroll provider in the form of emails and excel sheets, some password protected and some not. This information is then aggregated by the in-house payroll and finance departments into excel files manually, causing an excess workload for each department.
Looking at both models, consider what model is your departments currently working on? Considering these models ask yourself, is your current global payroll system really global?
- Do you have a structured and independent plan of the steps and actions needed to complete payroll operations across each country?
- Are you receiving consolidated global reporting that provides useful insights and knowledge on payroll across all country providers?
- Do you have a system in place that reduces the influx of emails and spreadsheets received on a monthly basis from each payroll provider?
- Do you have an audit trail for all payroll paperwork and employee information for in-country data protections and GDPR compliance?
If you have answered no to some of or all of these questions, then it is time to think about how your strategy needs to be adjusted or changed to suit the rapid changes and expansion within your business.
In this digital day and age, the right information is key to staying one step of your weekly or monthly payroll obligations. One major benefit of a cloud-based global payroll system is that it can give your business better access to critical information in real-time. It doesn’t matter where your payroll team is based, they can pull all the data they need from any connected device at any time.
With greater access to information that provides a holistic view of the company – and with more time to put the information to better use – your payroll team will think smarter and act faster.
Payslip software can help you stay ahead of your weekly and monthly obligations. the software reduces the number of emails pinging back and forth from department to department to in-country payroll providers. By using the payroll system, the entire payroll process becomes transparent and accessible, creating a collaborative and agile workplace.
Why not sign up for a Payslip demo and discover how the innovative software can work within your organisation.