Outsourcing and Centralization
According to a survey conducted last year by Immedis, a Dublin-based payroll outsourcing services firm, 41 percent of respondents said that the chief problem they faced with global payroll was keeping up with tax legislations in multiple jurisdictions.
Hiring in-house employees for taxation in every country could hike up operational costs. Instead, onboarding an experienced payroll outsourcing service that is specialized in multi-country tax laws can improve efficiency while reducing overheads.
Another hack for a successful global payroll system would be to have centralized operations. Given the EU’s latest General Data Protection Regulation (GDPR), it makes sense to consolidate all employee information in one location. The new GDPR rules apply not just to businesses operating in the EU, but also any company that interacts with residents or businesses in the EU. Centralization tackles the issue of both compliance and cost…like killing two birds with one stone.
Standardization and Technology
Having different formats for payroll data in various locations can prove difficult for employees when they are relocated within the organization. This can disrupt centralized activity, even if payroll services are managed by an outsourcing vendor. Having a standardized platform with cutting-edge technology for collecting and storing information can simplify the process.
The best payroll software is quick, able to minimize human error, and scalable across different locations and employee volumes. Adopting cloud-based technology and automation can transform how global payroll functions.