How should your international enterprise best manage international payroll processing?
Evidence suggests that international payroll processing is already a strategic focus for multi-nationals: In a 2018 Deloitte survey of international enterprises, 49 percent reported that they had a global payroll strategy, or intended to put one in place.
Here we set out some of the key challenges for international payroll processing and the steps you should take to rise to that challenge.
The Operational Challenge for Global Payroll Processing
Some of the challenges of operating an international payroll include:
The Compliance Challenge for Global Payroll Processing
Being responsible for payroll across several international locations means ensuring that complex payroll requirements comply with each location. Some matters that need to be taken into account include:
Possible Solutions to Global Payroll Challenges
Given the challenges involved, what can an international enterprise do to improve its payroll processing? Possible options include:
Ensuring international payroll processing is integrated across different countries, as well as sensitive to local differences, is a major challenge for international businesses. That challenge partly arises from operational processing issues: managing various payment methods, promptly correcting errors, dealing with employee leave and absences, integrating software systems, and managing local variation. But it is also a result of potential compliance risks, including tax and employee benefit liabilities and data protection.
New Horizons Global Partners supports businesses with their international payroll processing & outsourcing through several different mechanisms.