“Transparency and compliance with the law are factors of further development” – Christian Wolff.
Several organizations are seen venturing into newer geographies to find more unique markets. This expansion has given rise to organizations having to re-look at their existing global payroll process. One of the most critical factors organizations need to bear is to ensure that they remain compliant with in-country policies and regulations” across all countries of operations.
As more and more companies go global, several rules and regulations multiply with each new country of operations, and ensuring compliance becomes harder and harder. Being ignorant of changes in local laws with inconsistent and inadequate documentation of compliance policies and procedures are often considered pitfalls in Global Payroll Compliance.
To simplify the administration of Global Payroll Compliance, companies should consider the following four best practices
In-house HR executives can make more informed decisions about the processes and systems they need to leverage for global business opportunities by understanding the legal, accounting, and administrative threats associated with Global Payroll. The key to Global Payroll compliance would be choosing a global payroll provider who can exhibit thorough knowledge and experience in handling in-country payroll and compliance for all countries of operations.
Neeyamo follows an innovatively structured triangulated compliance framework supported by its in-house knowledge organization and vast global presence to monitor and manage global payroll compliance effectively. A dedicated team of compliance experts proactively tracks regulatory changes. It maintains an inventory of laws and statutory regulations that have helped its customers stay compliant irrespective of their country of operations.
Neeyamo’s global payroll solution is designed to give its customers a futuristic edge to manage their global payroll operations through constant innovation that touches the lives of not just its customer’s payroll team but also focuses on enhancing an employee’s payroll experience at large.
- Storage and review of data:
Policies and procedures should be reviewed and updated regularly. Sometimes it’s best to cast the net more broadly in a review within an organization to ensure all compliance areas are covered.
In an organization, there are different types of data/ information stored, and for staying compliant, certain specific types of information that are pertinent to compliance must be stored for a defined period, such as four years for all The Federal Insurance Contributions Act (FICA) and The Federal Unemployment Tax Act (FUTA) information. Other reports must be filed at a pre-specified time of the year with their respective government agencies to prove compliance. An employer can leverage an HRIS to notify managers when these reports are due; this will help them to ensure that messages will be sent out on time with all the required information.
- Proactive coordination with local officials and internal departments:
Payroll non-compliance issues can indicate to local governments that an organization may be non-compliant in other areas of the business, which may further lead to deeper unwanted scrutiny. Proactively working with local officials under audit can help preserve the organization’s corporate reputation and lead to greater leniency with the authorities. It may also reduce potential penalties that can be assessed. It is an excellent practice to increase the scope of compliance policy meetings to include more players in an organization that has members of HR, finance, tax, compensation/benefits, and legal teams.
- Usage of Smart and Simple Global Payroll Compliance System:
Implementing any business software can become time-consuming and complex, and setting up a global payroll system is no exception! A holistic global payroll solution created to address global payroll complexities should equip the user with tools that support the core-payroll process and tie to auxiliary services like helping the organization stay compliant with local laws.
A well-mapped onboarding process for the solution is essential for organizations to handle change effectively and derive maximum benefits per commitments made before implementation. It is necessary to have a roll-out plan and an intelligent implementation timeline plotted out. Compliance can be achieved transparently through a well-standardized approach providing effective real-time tracking.
- Leverage local, in-country expertise:
To manage regional payroll requirements, it is essential to have local knowledge and expertise to comply with payroll requirements in foreign jurisdictions. But securing in-country expertise requires much more than just online research.
The key to equipping the payroll system with local knowledge is to work with a payroll partner that has thoroughly vetted in-country vendors in the countries of operation.
Leading providers offer access to standardized payroll processes and a network of proven in-country suppliers— enabling the company to enjoy the security of a robust payroll system wherever their businesses take them.
In-house HR executives can make more informed decisions about the processes and systems they need to leverage for global business opportunities by understanding the legal, accounting, and administrative threats associated with Global Payroll. The key to Global Payroll compliance would be to choose a global payroll provider who can exhibit thorough knowledge and experience in handling in-country payroll and compliance for all countries of operations.
Neeyamo follows an innovatively structured triangulated compliance framework supported by its in-house knowledge organization and vast global presence to monitor and manage global payroll compliance effectively. A dedicated team of compliance experts proactively tracks regulatory changes. It maintains an inventory of laws and statutory regulations that have helped its customers stay compliant irrespective of their country of operations.
Neeyamo’s global payroll solution is designed to give its customers a futuristic edge to manage its global payroll operations through constant innovation that touches the lives of not just its customer’s payroll team but also focuses on enhancing an employee’s payroll experience at large. Reach out to us for more insights.
