Based on the 2019 Global Payroll Complexity Index, information, especially, the protection and security of information – is currently the main concern for the market. As the report clarifies, “Payroll holds the key to business success. It is the value in payroll information which makes it incredibly high risk.” That payroll executives are, therefore, worried about protecting this valuable asset is not surprising. A polling of payroll professionals discovered that:

On average, Human Resource and payroll departments employ approximately thirty-four hours per week on compliance-related activities which range from mapping regulatory proposals to originating and communicating new policies – enough time for a dedicated full-time employee.

Companies with less than 500 employees average 23 hours per week on compliance issues, and those with five hundred-999 workers average thirty-one hours each week. It increases to thirty-six hours per week for companies with 1,000-2,499 employees.

What are the three primary issues of worry?

“The results of the Global Payroll Complexity Index confirm that in 2019, global companies are challenged by managing growing volumes of employee data, keeping to data privacy rules, and remaining compliant in a world of unique employment and taxation compliance laws across the globe,” stated Mary Holland Global Director of Strategy, Development and Training at the Global Payroll Management Institute (GPMI) and the American Payroll Association (APA).

For
global payroll vendor working in international payroll, the results of the survey would appear as no surprise. GDPR is a game-changer; the increasing amount of information presents with it greater security issues, as well as the constant creation of new labor laws aggregate to challenge payroll professionals with a enormous job.

Today we will look at each of these issues in a little more detail and then examine how payroll professionals are working hard to tackle each concern.

General Data Protection Regulation (GDPR)

GDPR and why it’s changing Europe’s data security laws may be arguably one of the primary significant results in the payroll market in the recent past. The regulation determines not only what information may be held; but also, where, by whom, and for how long. What is additionally hugely significant for global companies is that GDPR applies not merely for businesses and organizations within Europe, but also to companies and organizations outside of the EU if they provide goods or services to consumers in the EU or if they monitor the actions of EU data subjects. All companies- regardless of where they are located- who process or store individual data of individuals residing in the EU are accountable and must be GDPR compliant.

Organizations that neglect to comply with GDPR risk reputational damage and fines. Based on the recent report, data protection regulators have levied EUR114 million in fines since 2018.

Information issues

The unique and sensitive matter of employee information means that companies are under significant pressure to ensure they don’t fall victim to criminals. That type of issues creates possible problems for workers, and it additionally puts the company at risk of reputational damage and possible lawsuit.

One of the recent examples of such an issue happened during April when American education tech business Chegg experienced a data issue where criminals stole 700 records that contained both previous and present employee information such as names and Social Security Numbers.

Legal compliance

Keeping up to date with changing legislation is a great challenge faced by payroll managers. Once again, this is not surprising given the high occurrence of changes in the laws both local and international. From the 2019 Global Payroll Complexity Report, we know that while European countries still top the list for most complex reporting, the growth economies in South America, Asia, and Africa mean countries in these regions are starting to make more changes to their regulations which will further impact the task of payroll.

How can payroll better manage those issues?

A response is to move to a unified global payroll service provider. While the many capabilities of a single payroll platform extend past ensuring compliance, the fact is they can significantly minimize compliance concerns.

GDPR

The cornerstone of GDPR compliance is obtaining the protection of your data. Payroll should be able to answer the following questions:

What data do you hold?

Where do you manage this information?

Why are you keeping this information?

How safe is it?

While analyzing various payroll vendors, use the time to explore each of these questions with them to make sure each has the capabilities to satisfy your data obligations. The Immedis Platform safe-guards your information via several measures including encryption and the ability to separate information from its subject so that the data is stored separately providing an additional layer of security and protection.

Data breaches

Protecting your information is critical. However, a global payroll system that provides an ISO quality certification provides security. Specifically, the ISO 27001 certificate since it is known as the global standard for data security management. Immedis is ISO certified, which means Immedis run monthly internal audits and complete bi-annual outside audits to ensure compliance. They additionally employ a rigorous control framework – each update on the Immedis Platform is user timed.

Legislation updates

Remaining updated with payroll legislation is a behemoth job. The issues and monetary results of failing to do so are just as enormous. Deloitte presents the success of a global service provider: “A global service provider offers a unique solution for the tax and social security compliance-related issues by providing payroll services for most countries across the globe.” An additional plus is receiving updated data on amendments – particularly pertainining to local laws – and synchronizing with multiple vendors is taken care of with a single vendor. Immedis has thorough international payroll expertise and provides continuing updates on local legislative changes and their impacts on the workforce.