Based on the 2019 Global Payroll Complexity Index, data, especially, the protection and security of data – is currently the primary issue for the market. As the report notes, “Payroll is the key to market success. It is the value in payroll information that makes it especially high risk.” That payroll professionals are, therefore, concerned about protecting this valuable asset is hardly surprising. A survey of payroll professionals discovered that:

On average, HR and payroll departments deploy nearly 36 hours per payroll cycle on compliance-related iisues ranging from observing regulatory proposals to originating and communicating new policies – enough employment for a dedicated full-time employee.

Organizations with less than 500 workers average twenty-three hours each period on compliance duties, while those with 500-999 workers average 31 hours per period. That goes up to thirty-six hours per week for organizations with 1,000-2,499 employees.

What are the three main areas of worry?

“The results of the Global Payroll Complexity Index find that in 2019, multinational organizations continue to be challenged by managing increasing volumes of employee data, adhering to data privacy regulations, and remaining compliant in a world of unique employment and taxation compliance rules 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).

To anyone working in international payroll, the results of the survey would appear as no surprise. GDPR is a paradignm shift; the increasing amount of information brings with it greater security issues, as well as the non-stop creation of new labor laws group to offer payroll managers with a herculean task.

Today we will examine each of these areas in a little more detail and then examine how payroll professionals are trying hard to resolve each issue.

General Data Protection Regulation (GDPR)

GDPR and how it’s changing Europe’s data security laws is possibly one of the primary important impacts in the payroll market in recent memory. The regulation governs not only what information can be stored; but also, where, by whom, and duration. What is additionally hugely significant for global operators is that GDPR applies not only to companies and organizations within Europe, but also to businesses and organizations outside of the EU if they provide goods or services to individuals in the EU or if they observe the actions of EU data subjects. All companies- regardless of where they are domiciled- who process or store individual data on individuals residing in the EU are accountable and must be GDPR compliant.

Organizations that fail to comply with GDPR risk reputational damage and fines. According to the recent report, data protection regulators have imposed EUR114 million in fines since 2018.

Information breaches

The unique and sensitive nature of employee data reveals that organizations are under extreme pressure to make sure they do not become victim to hackers. Such a issues creates potential problems for workers, and it additionally puts the organization at risk of reputational damage and legal action.

One of the recent examples of such a violation happened during April when American education tech business Chegg experienced a data breach where criminals stole 700 records that contained both past and current employee information like names and Social Security Numbers.

Legal compliance

Staying up to date with changing legislation is one of the greatest challenges faced by payroll professionals. Again, this is not surprising provided the high occurrence of changes in the laws both local and global. From the 2019 Global Payroll Complexity Report, we realize that since EU countries still top the list for most in-depth reporting, the growth markets in South America, Asia, and Africa mean countries in these regions are starting to create additional changes to their regulations that will greatly affect the role of payroll.

How can payroll better handle these challenges?

One reply is to move to a unified international payroll service provider. While the several capabilities of a single payroll system reach past ensuring compliance, the fact is they can significantly mitigate compliance concerns.

GDPR

The cornerstone of GDPR compliance is ensuring the protection of your information. Payroll should be able to address the following queries:

Which information do you have?

Where do you keep this data?

Why are you holding onto this data?

How protected is it?

When analyzing various
payroll vendor s, take the time to explore all of these questions with them to make sure each has the abilities to satisfy your information obligations. The Immedis Platform safe-guards your information through multiple measures which includes encryption and the capability to isolate information from its subject so that the information is held individually providing another layer of security and protection.

Information breaches

Securing your data is critical. But, a global payroll platform that provides an ISO level certification provides security. Especially, a ISO 27001 certificate since it is recognized as the international standard for data security management. Immedis are ISO certified, which means the company perform monthly internal audits and complete twice yearly outside audits to ensure conformance. The company additionally implement a strong control groundwork – every update on the Immedis Platform is user dated.

Regulatory updates

Remaining updated on payroll legislation is a over-whelming task. The risks and financial consequences of failing to do so are also enormous. Deloitte shows the success of a global service provider: “A global service provider offers a compelling solution on the tax and social security compliance-related issues by providing payroll services for many countries across the planet.” An additional benefit is receiving updated data on amendments – especially about local regulations – as well as synchronizing with several vendors is taken care of by a single vendor. Immedis has extensive international payroll expertise and offers ongoing updates on local regulatory changes and the impacts for workers.