Arguably the most vital obligation an employer has to its employees is payroll, but even in 2019, payroll remains an often inefficient and disorganised process. The basic need to compensate employees for their work combined with the recent changes global payroll and HR teams face can leave your payroll processes ineffective.
Among organization changes like mergers and acquisitions, global expansions, newly-hired employees, restructuring of departments, and regional labor laws, running payroll internationally can be overwhelming. Follow these four actions to streamline the efficiency of your payroll processes:
1. Stay Ahead of Deadlines
There are a large number of taxes and obligations that affect employers’ payroll, from quarterly reporting to payroll tax and additional compliance regulations. You know that this is especially important toward the end of the financial year. Collaborative Solutions, now with the expertise of APAC-based Theory of Mind, recommends that you create a stringent calendar of all payroll-related deadlines with regular reminder notifications. Better yet, many modern cloud-based payroll software incorporates tax and financial reporting into one straightforward system to stay on top of deadlines and keep your government and employees satisfied.
2. Understand Regulatory and Legal Requirements
Every country has unique labor laws and a payroll environment that each organisation should be familiar with. In Australia, Single Touch Payroll changed the way employers report employees’ tax and superannuation information in 2018. Another law in Asia-Pacific that may need to be taken into consideration is the all-encompassing Labor Law of the People’s Republic of China. In the EU, Working Time Directive, Data Protection Directive, and Acquired Rights Directive are in place to protect European workers and encourage free flow of labor. In the U.S., FLSA, FICA, and FUTA are particularly relevant to any employer. The details of key payroll issues (e.g. minimum wage, maximum hours, overtime pay, etc.) vary from country to country and must be managed accordingly. You should not only fully understand these regulatory and legal requirements but also choose a global payroll software that helps meet them and can integrate with local software.
3. Simplify Payroll Policies
A clear place to view all company policies such as paid time off, holidays, and sick day allowances will not only be appreciated by employees but will also minimise the amount of time your HR organisation spends answering these questions. Be sure to show these payroll policies in a transparent and simple manner, such as FAQ documents or a calendar chart.
4. Embrace Technology
If you’re still printing paper pay slips for employees, it’s time you move to the 21st century. A single platform with all HR, finance, and payroll information will allow for employees to access pay information anywhere in real time, and they can opt in to emails about pay information. Modern technology enables you to make the most of payroll by automating processes, viewing global labor costs and trends, and make changes without relying on IT or a payroll service provider.
Aside from the work your organisation specialises in, payroll is one of the most crucial practices you’ll have as an employer. Learn how to manage and align processes across payroll, workforce planning, recruiting, reporting, accounting, and finance with less complexity than legacy systems in our free eBook: